Railways Reform

11. What recent steps he has taken to reform the railways.

In February this year I set out our commitment to reforming the railways. Last month I was pleased to be able to visit Derby and announce its success in being named as the location of the headquarters of Great British Railways. We will publish our response to the rail reform legislation consultation before the summer recess. Meanwhile, we are continuing to deliver rail reform, including the roll-out of pay-as-you-go technology across the network, simplifying industry processes and developing the long-term strategy for rail.

I welcome the Government’s commitment to railway reform, but the Secretary of State will know from my recent meeting with the Rail Minister, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), that my constituency is heavily impacted by the construction of HS2. We have always been promised that the Handsacre link will bring economic benefits to Stafford, but given the recent push to find savings in this project, concerns have been raised that the link will be scrapped. Will my right hon. Friend confirm that it will indeed go ahead?

My hon. Friend never misses an opportunity to raise her constituents’ concerns about HS2, both with me and with the Rail Minister, thus doing the job that she was elected to do extremely well. Our priority is to deliver the opening stage of HS2 on schedule and to ensure that high-speed services from Old Oak Common to Birmingham Curzon Street begin between 2029 and 2033, but I have made it clear that phase 1 construction works north of Birmingham from Delta Junction to Fradley—including works at Handsacre—will continue to progress.

In Scotland, through our publicly owned ScotRail franchise, peak fare rail travel will be scrapped for six months from October. This progressive reform would not have been possible without those powers being with the Scottish Parliament. Does the Minister welcome a measure that will aid hard-pressed families in this cost of living crisis, or does he agree with his arch-Brexiteer colleague who said this morning that devolution should be reversed?

This Government strongly support devolution, and not just to Scotland, Wales and Northern Ireland, but through what we are doing with combined authorities across England, because we think that having decisions taken more locally is a good thing for the country. The Scottish Government have an enormous number of powers and they should use them widely. I am pleased to see that in the past couple of weeks they are starting to be held to account for their decision making.

I call the shadow Minister.

When it comes to railway reform, the Conservative Government seem to know only two approaches—hike up fares and cut railways back to the bone. They are not content with slashing services, cancelling investment and reducing reliability: a leaked Network Rail report reveals that the Government want to cut funding to such a dangerous level that it will be unable to “operate, maintain and renew” tracks and bridges. On top of that, a £3 billion risk fund to help in emergencies such as severe weather will also be cut. Fewer repairs mean more obstructions, risking more delays and accidents and more compensation to private operators. Why are Ministers so passionately committed to making our railways less reliable and ever more expensive? Have the public not suffered enough already?

That was an extraordinary question, containing not a single fact. The Government have provided a record £44.1 billion settlement for Network Rail in control period 7—in English, that is between April 2024 to March 2029. Compared with the previous control period, that is a 4% increase in real terms when compared on a like-for-like basis, and an above-inflation settlement during a highly challenging fiscal environment. That demonstrates our continued commitment to running and maintaining vital railway infrastructure.