This Government are clear that transport is an essential part of our mission to rebuild Britain, and we are committed to delivering infrastructure that works for the whole country. We need a long-term approach to infrastructure and investment taking account of local transport priorities, which is what we will provide. We will review the position we have inherited thoroughly and at pace, and we will set out more detailed plans in due course.
I thank the Minister for his Answer, but he will be aware that today’s National Audit Office report confirms the expensive and disastrous impact of the cancellation of HS2 north of Crewe, with a reduction in the number of seats available on trains as a result of a decision that cost half a billion pounds wasted on land that was not going to be used for development. Does the Minister agree that a full and proper review of this decision is needed by the Government so that this never happens again, and so that the opportunities for the north of England are maximised? Will the Government also review the decision of the previous Government to allocate to Wales only £1 billion of Barnett consequential funding when Wales should, by right and by fairness, have £3 billion?
We will review the National Audit Office’s report, which is a report on the status of the project as it was left under the previous Government. We will have to do that before setting out more detailed plans. Personally, I am aware of the disparity in seats created by the present planned service pattern on HS2 following the cancellation of phase 2a. We will have more to say about that in the future.
In respect of the Barnett formula, heavy rail is reserved in Wales, so any heavy rail scheme that the department delivers should always be classified as England and Wales when applying the Barnett formula. That includes HS2. It is a different situation in Scotland and Northern Ireland. The Scottish Government and Northern Ireland Executive, under their devolved policy areas, do therefore receive Barnett-based funding. This is consistent with the funding arrangements for all other policy areas reserved in Wales but devolved in Scotland and Northern Ireland. That said, due to use of departmental comparability factors in the Barnett formula at spending reviews, the Welsh Government have received a significant uplift in their Barnett-based funding due to the UK Government’s spending on HS2.
The Government are committed to building HS2 up to Handsacre. Is the Minister satisfied that there is sufficient capacity beyond Handsacre up to Crewe, given what the new line will deliver to the country, and will he bear this in mind in his review?
I thank the noble Lord, Lord McLoughlin, for his knowledge of the geography of the national railway network; I am aware of it myself. We will certainly have to bear that in mind with the review of the project as it now stands.
My Lords, to what extent has the Minister discussed this matter with the Government of Wales—the Labour Government of Wales in Cardiff—who are totally convinced that Wales is entitled to a Barnett consequential in line with the consequential payments to Scotland? The arguments that he has used today are nothing but an excuse to avoid payment. Will he please link up with his Labour colleagues in the Welsh Government to sort this matter out so that Wales can get the resources it needs?
I have a meeting with the Cabinet Secretary for Transport in Wales in my diary. I am sure that he will raise that matter.
The Lord Bishop of Leeds
My Lords, one of the mysteries of HS2 was that you could get to places like Leeds 16 minutes quicker, but you could not get anywhere else when you got there because of deficiencies in the northern network. What confidence can we have that any other plans that come forward will be realised and improve the situation in the north?
Reintroducing the High Speed Rail (Crewe - Manchester) Bill is the first step in doing so, by providing powers to develop, construct and operate railway infrastructure that is key to improving interregional and northern rail connectivity, which, of course, generates economic growth, jobs and housing.
What are the Government going to do about the urgent situation between Manchester and Leeds, which has been made very apparent by the National Audit Office?
A project is already in execution to improve railway connectivity between Manchester and Leeds, the trans-Pennine route upgrade. It is currently valued at some £11 billion and is in the course of delivery.
My Lords, when the last Government cancelled High Speed 2, they said that they would transfer the money into northern schemes but, as we know, a lot of it was spent in other areas. Can the Minister guarantee that when the review takes place, he will make sure that the north gets its fair share of transport infrastructure?
Reintroducing the High Speed Rail (Crewe - Manchester) Bill will be great evidence that the Government are thinking of improving easy-west connectivity in northern England and continuing the work that the trans-Pennine upgrade is already starting for a modern, high-speed and high-capacity railway all the way across between Liverpool, Hull and other places on the east coast.
My Lords, when do the Government expect the fourth largest city in England, Sheffield, to have back its direct train to Manchester Airport, its main international airport?