Transport Infrastructure Funding

The Government recognise the critical contribution that transport makes to our growth mission. The Government increased the capital envelope by over £100 billion at the autumn Budget last year, and by a further £13 billion at the spring statement. Taken together, that represents a big increase in capital investment. As a result, the transport capital budget, excluding High Speed 2, will increase by 1.9% per year in real terms over the spending review period. That investment will improve connectivity in our towns, cities and villages, reduce journey times and increase transport reliability. For areas of transport that are devolved, it is up to the Scottish and Welsh Governments to allocate their funding and be accountable to their respective Parliaments for those decisions.

I welcome the announcement in the spending review that railway projects in Wales, including five new stations east of Cardiff, will receive an extra £445 million in funding over the next decade. Will the Chancellor provide more detail as to how the money will be specifically allocated and when work will begin?

It was a pleasure to be in Cardiff just after the spending review to look at the difference made by the investment that the Labour Government are putting into transport in Wales. The spending review and the infrastructure strategy recognised Wales’s long-term infrastructure needs and how they have been neglected for too long by the Tory party. We delivered at least £445 million for rail enhancements, which provides funding for continuing to develop and deliver the stations identified in the Burns review, including Newport West and Somerton. Plans for future rail investment in Wales will be made in close consultation with the Welsh Government and through engagement with the Wales Rail Board.

I declare an interest as co-chair of the all-party parliamentary group on British buses. Our £15.6 billion commitment to regional transport through the spending review should be good news for bus manufacturing. However, Alexander Dennis’s ongoing consultation threatens 400 jobs in Falkirk, putting another major employer at risk just after the closure of the Grangemouth oil refinery. The Scottish National party’s ScotZEB 2 scheme famously failed to invest in Scotland. Where things are built and by who matters, so will the Chancellor act to guarantee that our investment in transport is of maximum benefit to Scottish vehicle manufacturers?

It is important that, as this Government put more money into infrastructure, including transport, it benefits companies and jobs here in Britain. It is not right the Scottish Government spend more on buses made in China than on buses made in Scotland. There is nothing preventing the Scottish National party from investing in jobs and growth in Scotland.

MPs and councils of all parties across east and north Yorkshire are united in wanting to enhance connectivity in the area, have greener options and optimise the economic output of the area, so will the Chancellor work with us on a cross-party basis to look at reopening a direct rail line from Hull to York, so that those great university cities can be united by effective transport infrastructure once again?

I really welcome the fact that the right hon. Gentleman supports the investment that this Labour Government are making in transport and infrastructure after the 14 of years neglect by his party. We have increased transport spending by 1.9% per year in real terms in every year of this spending review period, benefiting all parts of the country, including Yorkshire, where both he and I have the honour and privilege of being Members of Parliament.

The Prime Minister, the Business Secretary and the Chancellor had the joy of coming to my constituency to see the MIRA technology park last week. They will have come via the A5. The previous Prime Minister talked about the funding that would be submitted via the A5, but in the spending review that money seems to have dropped, so will the Chancellor commit to the same funding for the A5 that we had from the last Government, because it is really important for my area?

The irony is that the last Government made a lot of commitments but did not put any money into delivering them. That is the difference that this Government are making, with fully funded plans to upgrade transport. The Department for Transport now has its settlement and it will look at a number of projects. The mess left by the Conservatives is something we have had to sort out. The Conservatives have not backed any of the measures that we have taken to bring in more revenue, yet, as we have seen, they are very keen on spending the money. That is why we were left with a £22 billion black hole when we came into office a year ago.