Great British Railways

(Urgent Question): To ask the Secretary of State for Transport to make a statement on the future of Great British Railways.

The case for rail modernisation is now stronger than when Keith Williams set out the plan for rail in 2021. Covid-19, recent macroeconomic events, industrial relations and financial challenges have increased the need for it. The railways are not meeting customers’ needs, with delays, unreliability and uncertainty exacerbated by the rail strikes. When people look at the rail sector, we need them to see a system that stands for reliability and sustainability, so it is clear that we have to change.

This Government will therefore deliver the most ambitious changes to our railways in a generation, and will deliver for the people who matter: our passengers, customers and taxpayers. Although we will not be introducing rail reform legislation during the current Session, due to limits on parliamentary time, we are committed to introducing the legislation necessary to create a guiding mind, Great British Railways, as soon as possible.

As many Members are aware, a competition was run to identify the location for the Great British Railways headquarters. I welcome the support of colleagues for the six shortlisted towns and cities, and I note that the hon. Member for York Central (Rachael Maskell) has been vocal in her support for York to be the winner. I hope to be able to announce the successful location shortly—subject to other events outside the Chamber. Ahead of the legislation, we will continue to work with the Great British Railways transition team and the wider sector to push ahead with our ambitious modernisation programme to deliver real benefits for customers.

Reforming our railways means more reliable trains, faster journey times—in all, a modern, future-facing rail industry; a sector with an unswerving focus on meeting the needs of its customers, creating a simpler, better railway for communities across Britain. There will be a GBR at the heart of our rail network, with its headquarters located in one of our great railway communities. The details will be confirmed shortly, but our commitment to deliver is unchanged.

I am grateful to you, Mr Speaker, for granting this urgent question.

Following the publication for the House of the Williams-Shapps review, the Government announced in the Queen’s Speech on 10 May 2022:

“Legislation will be introduced to modernise rail services and improve reliability for passengers”.

As part of this process, the then Transport Secretary launched a high-profile competition for the location of the headquarters outside London. Forty-two locations bid and six were shortlisted, including York, as part of the levelling-up agenda. Each location shortlisted hosted a ministerial visit over the summer of 2022, involving public sector, rail industry and community stakeholders. In parallel, the public participated in a public vote over their preferred destination. All this was at significant cost to local authorities. Last Wednesday, the Secretary of State shelved her plans for this Session. No written or oral statement has been made to the House until today.

Let me therefore ask the following questions. Why did the Secretary of State not have the courtesy to announce her U-turn on Great British Railways to the House? If the relocation of the new headquarters is to proceed, what will the process be, and if not, given that hundreds of thousands of pounds have been spent by local authorities, how will the Secretary of State compensate shortlisted authorities? What was the result of the public vote? What are the reasons for shelving the plans for the future of Great British Railways in the current Session? How, in the interim, will the Secretary of State address the failure issues across the rail network that Great British Railways was to resolve, including contract failure on the west coast main line and elsewhere? What discussions has she had with the trade unions on abandoning her plans, and on the implications for the workforce across the rail sector? Is she now abandoning Williams-Shapps, levelling up, and any semblance of government? The Great British public deserve better.

I think it is worth pointing out that the comments referred to were made to a Select Committee of this House, the Transport Committee, and that the Secretary of State was therefore giving information in her role as Transport Secretary and keeping Members up to date. As I touched on in my initial answer, there will be a Great British Railways HQ located in one of our great railway communities. I am sorry to disappoint people, but I will not be announcing from the Dispatch Box today where that will be, but it is something that we are committed to doing. It has been inspiring to see the excitement about the competition; it shows what rail can bring to local communities. Certainly there will be a successful bidder, so to speak, and they will be announced in the not-too-distant future.

Yes, the Secretary of State has met the general secretaries of the leading trade unions involved in the rail sector, but that was not to discuss abandoning the plan, because we have not abandoned the plan. We are still taking forward a range of work to reform and modernise our railways, and there is plenty we can do, even in the absence of a Bill in the third Session. I am confident that Great British Railways will make a difference to our rail network. It would be tempting, in these interesting circumstances in which I come to the Dispatch Box, to make a raft of pledges on things I would quite like to do with the railways, but we are certainly conscious that we need to reform and move forward, and that is something that most people across the sector realise. There might be slightly different views about exactly how to go about that, but I am keen to see it taken forward to make the difference for our customers and communities, who deserve a rail network that delivers for them.

I call the Chair of the Select Committee, Huw Merriman.

It was in the Transport Committee that the Secretary of State gave us this news about Great British Railways. I understand the concern about her not coming to the Dispatch Box to do so, but surely everybody supports the concept of a Select Committee getting fresh information from those who come before it. The Secretary of State also told us that the guiding mind of Great British Railways can still be advanced without legislation, because there is a lot that can be brought forward and very few parts of it need legislation. Can the Minister set out some of the ideas that would see the guiding mind being brought forward, notwithstanding the fact that the legislation would be slightly lagging behind?

The Chair of the Transport Committee is absolutely right to highlight the role that his Committee can play as a group of experienced, and in some cases expert, Members who can analyse issues and question Ministers on their performance. It is appropriate to use a Select Committee as a place to engage and discuss where Government’s thinking is going. What can be achieved without legislation includes workforce reform, delivering local partnerships, bringing forward a more long-term strategy for rail and reforming how we use ticketing. I think we all recognise that post-pandemic far fewer people are buying season tickets compared with on-the-day tickets, and we are looking at the changes that may flow from that changing pattern. There is still plenty that we can be cracking on with and delivering at the initial stage of reform without having primary legislation as part of it.

I call the shadow Minister, Tanmanjeet Singh Dhesi.

As usual, this Government are in chaos of their own making. We would not be standing here today if they were capable of making commitments and sticking to them. They are stopping a project in its tracks despite millions of pounds of taxpayers’ money already having been spent. They are asking towns and cities to invest precious time and money in their headquarters bids but completely mothballing the relevant legislation in any transport Bill within this parliamentary Session. They are showing a serious lack of ambition and long-term vision and leaving the whole of the rail industry in the lurch.

I asked the rail Minister about this very issue in the last Transport questions but was effectively fobbed off. We should not be surprised at that, considering the mess they have made of our railways. Last week 55 services on the TransPennine Express were cancelled in just one day, and two of our northern Mayors could not travel to Liverpool for a press briefing on train cancellations because of train cancellations. Avanti West Coast has slashed more than 220,000 seats per week, but despite this, one of the Transport Secretary’s first acts was to ensure that a lucrative contract extension was in place. As usual, the Tories are rewarding failure. People across our country are paying the price for a system that the Conservative party has already admitted must change but refuses to say how or when. The Conservatives promised at their party conference, with a straight face, to get Britain moving, yet all we have seen is stoppages, strikes and the managed decline of our railways, and now they are abandoning their flagship policy as a direct result of their aimless and distracted party. They are a shambolic Government with no plan and no ideas.

Will the Minister clarify the future of Great British Railways? Has it been stopped in its tracks? When will his Department get a grip on the railways and deliver a proper service for passengers across our country?

Luckily, I have already answered the hon. Gentleman’s first question. We have certainly not brought Great British Railways to a halt. Again, we said the location of its headquarters will be announced shortly. This has not been stopped, abandoned or any of the other things we are hearing from the Labour party. We are very clear that we want to look forward to a rail network that is seeing massive, almost unprecedented investment, and in which customers can look forward to better facilities and better services that deliver for their communities. I leave it to the hon. Gentleman to look back wistfully at British Rail.

It is clear we have a very busy legislative programme, but that does not necessarily mean we have to stop things like fares reform, network efficiency, flexible ticketing or encouraging more people back on to our railways. Those things do not need legislation; they just need progression. This time will allow my hon. Friend to ensure a significant role for the private sector in rail reform and, of course, to further consider the merits of York as the location of the headquarters of Great British Railways.

I could not have put it better myself. My hon. Friend is absolutely right that there is a range of things we can take forward, not least fares reform and innovative practices such as last year’s rail sale. There is plenty of work that can still be done, and we will certainly be getting on with it.

I call the SNP spokesperson, Gavin Newlands.

The rail industry and GBR are in stasis, and there is little evidence of progress coming from the Department for Transport. Six months ago, the previous Secretary of State promised we “would not be disappointed” with the legislation to create GBR, but I am feeling distinctly underwhelmed. The Williams review promised that GBR will

“take a whole-system view, allowing it to make choices and decisions more effectively. It will enable the railways to be run as a public service”.

That vision lies in tatters for now. We know that long-term thinking and planning are key, but instead we have a piecemeal, stop-start process that will take years, if not decades, to achieve real change in a key part of our national infrastructure.

When can we expect anybody, GBR or otherwise, to take a whole-system view of rail in this country? With ScotRail back in public ownership, there is one part of the UK where the railways are run as a public service. Will the Minister use the transport mini-Bill to devolve Network Rail to Scotland, to ensure that a fully integrated and fully publicly owned railway can be run somewhere in the UK?

I can understand why not having an integrated rail network across Great Britain is a particular priority for the Scottish National party. It clearly is a priority for this UK Government. We will not be looking to devolve responsibility for rail infrastructure, not least because the SNP’s main idea at the moment seems to be stopping the trains for passport control at the border.

On the wider pitch, we are determined to make a difference with our railways. We are seeing real innovation, and I am sure the hon. Gentleman will have looked at, for example, the experience of Lumo trains from Edinburgh to London. Lumo is an open-access operator that is pulling traffic away from air and on to rail, which is exactly what we want to see. We will get on with the many reforms we can make without primary legislation, but one of them will not be creating a disjointed rail network.

When will the Government and railway companies come forward with proposals for an improved pattern of services that attracts many more fare-paying passengers? We need to get the deficit down very quickly and the best way of doing so is by getting more people paying fares willingly.

My right hon. Friend is absolutely right. Clearly, demand patterns have changed dramatically during the pandemic. For example, a lot fewer people are commuting into London at 7 am to 9 am and then leaving between 5 pm and 7 pm, or they are doing that three or four days a week rather than five, so there is a need to look at how we can adapt. We are giving slightly more flexibility to some operating companies, and looking at how we use our ticketing and, in particular, our ticket pricing. The rail sale was a great way of getting a lot of people on to trains that might otherwise have been relatively quiet, producing new revenue to the railways. In addition, as I said in response to the SNP spokesperson, Lumo is targeting traffic that goes by air to get it on tracks.