I beg to move,
That this House has considered the future funding of urban transport.
This is an important subject, Mr Sharma, and there is an awful lot to say about it. Looking around the Chamber, it looks like I have about an hour to say it in, although I will not take that amount of time. I have been interested in the subject for an awfully long time. I will cover buses and light rail, in particular looking at the mayoral combined authority areas. I thank the Urban Transport Group and the mayoral authority in the South Yorkshire region for their briefings.
Public transport is more important for certain groups in the population than for others, such as people on low incomes. An interesting figure, given that we sort of think that everyone has a car—these days, some families have several cars, looking at the parking challenges on some estates—is that, for those whose incomes are in the lowest quintile, 45% of families do not have access to a car. That is almost half of families in that quintile. Older people often do not drive anymore, and the concessionary fare scheme is important for them. The group that is sometimes forgotten about is young people. Young children can go with their parents, but when kids get into their teenage years, they want a bit of independence. They are either not old enough to drive or do not have a car, so public transport can be important for them as well.
What sort of journeys are involved? Public transport is important for all sorts of journeys, such as getting to work—again, particularly for young people in lower-paid jobs—and for people trying to find a job. Another interesting figure is that 77% of job seekers do not have access to a car and 85% of job seekers in the 18-to-24 age group do not have access to a car. To get a job, people need a good public transport system to reach the right place for an interview or whatever.
Public transport is important not just for work but for how people run their lives. Many people need transport to get to a shop, in which case they need it to be easily accessible, or to visit friends and family. I have talked to people about the fact that when a husband or wife goes into a care home after living together for years, they pick a care home on a bus route that they can get to. The problem comes when the bus route changes and they cannot get there anymore—that is another challenge. There are also people who normally use a car but want to go out for a meal or drink and to do it safely. Public transport is important in all those cases.
The Mayor of the Sheffield city region, Dan Jarvis—I pay credit to Dan, because he takes the issue particularly seriously and he will be stepping down in May—asked me to review bus services in Sheffield about three or four years ago. We set up a bus commission, and I got a number of local people, representatives of the public, the unions and the private sector, and national transport experts to look at the situation.
We saw a bus service that was basically in decline. It was a spiral of decline: services got cut, so few people used them, so more services got cut. It was a journey to the bottom, that is all. We had complaints about frequency, as services got less; about services being removed altogether at weekends and evenings; about lack of connectivity as people could get from A to B, but often had to go via C and D; and about frequent route changes. That takes us back to the problem of the elderly person in a care home or someone who has just got a job only to find six months later that the bus route that gets them there at 7 o’clock in the morning to start their shift disappears. Those are really frustrating things, and of course, reliability is a problem. As more people use their cars and there is more congestion, the reliability of public transport gets worse.
We made a lot of recommendations. I will not go into them all now, or I probably will be here for the next hour, but the essence of them was some quick wins, which the combined authority has brought in—such as a scheme of cheaper fares for young people to encourage them on to public transport and recognise the particular challenges for them over the last few years with covid and the effects of austerity beforehand—as well as the need to look ahead to enhanced partnership and a route through to franchising, if that was decided to be the best way forward. We appreciate the powers that Government have given to mayoral combined authorities, which we think should probably be extended automatically to other authorities to enable them to move to franchising if that is appropriate.
We also looked at funding, which is a major problem. We talk about levelling up, but figures show that Government spending on buses per head in London is £75, and in Sheffield it is £5. That is quite a big difference. Passenger numbers have changed over the past 10 years, with numbers in the Sheffield city region dropping from 150 million to 92 million—a 21% fall in 10 years. It is a spiral of cuts and inadequate funding to support buses. The Campaign for Better Transport has estimated that Government funding for buses in England fell by 43% in real terms over that 10-year period, so that is a big fall. A big difference between funding for London and for areas such as Sheffield creates major challenges with declining bus ridership, which, of course, means less income coming in to the operators, to which they respond with more cuts.
The bus review set out what we should do, then covid hit. I appreciate that covid has disrupted an awful lot, both at local and national level, and I say to the Minister that we welcome the Government support provided throughout that period. We would not have any bus services left without it, because at one point during the initial restrictions, passenger numbers dropped to 10% of what they were before covid. The support that has been provided, both for buses and for light rail, has been welcome.
Even now, passenger numbers on bus and light rail in the Sheffield city region are only back to 75% of what they were before covid, so 25% is still missing. That fall in passenger numbers is mainly down to older people still being concerned about travelling and the change in office working, with fewer people travelling into the office. The drop in Sheffield is actually bigger than the drop in, say, Doncaster, because there are more offices in Sheffield. We can see the figures. One question for the Minister is, what happens in September? We are looking at another cliff edge. If the covid funding, which is welcome, disappears—it has been given only until September—what happens? Those numbers will not to recover to 100% of what they were before covid, if at all—we do not know about office working and things—and certainly not by September. There are some really big challenges.
Bus passenger numbers were declining prior to covid and now we have an even lower number of passengers, so what is the funding requirement? Clearly, the amount of money that the Government will have to provide in order to even stabilise the system, not improve it, is greater now than it was before covid, because we are in a worse position. Areas with light rail systems have an even bigger challenge, because the fixed costs of light rail cannot be dispensed with. The network is there—the rails, the stations, the trams and everything else. The fixed costs are there, and if there is no recognition of that, not only will the sustainability of light rail become a major challenge but, if authorities keep their light rail systems running, they will have to cut their bus service funding even more, so there are real issues around that.
We welcome the concept of the Government’s Bus Back Better. It is a good phrase and there are some really good statements from the Government in the national bus strategy, such as
“we want main road services in cities and towns to run so often that you don’t need a timetable.”
I say tongue in cheek, Mr Sharma, that people will not need a timetable in some places soon because the situation is so serious that there will not be any buses to have a timetable for. It goes on:
“We want better services in the evenings and at weekends”.
Many places do not have them now, but the coming cuts, which I will say more about, will make the situation even worse.
The bus strategy is right that we need more buses and more passengers on buses, as well as
“dramatically increased passenger numbers, reduced congestion, carbon and pollution”.
Improving public transport and getting more people on to buses and light rail is good for congestion; for the climate change agenda, because the number of people on travelling on a bus is the same as the number in several cars so less carbon dioxide is emitted; and for pollution, because it means less nitrogen dioxide. We should not forget about NO2, the silent killer, which is more damaging to children than anyone else because it sinks and children breathe the air at a lower level. Those are real issues, and it is right that the Government have sought to focus on them.
I mentioned levelling up, and accessibility of public transport is a levelling-up issue. People with lower incomes and more poorly paid jobs tend to be concentrated to a greater extent in some of our urban areas, where levelling up is needed. The Government’s initial approach was to offer a £3 billion programme. Some of the money has come in through the sustainable transport scheme. The Sheffield city region has had £570 million, which is not all for buses. There is a bit for light rail and some for road schemes as well; I question how those schemes fall under the sustainable transport remit, but that was the bid that was put in and accepted. The city region has bid for £450 million from the bus service improvement plan. Will the Minister tell us how much money is left in the BSIP programme and when we will find out what has been allocated? We were told there was £3 billion but now we hear it will be only £1.2 billion or £1.3 billion because the Government have taken the money that they spent on covid support off the £3 billion. The total amount of money is the same, but the covid support has been taken off that meaning less than half the original amount is left for the BSIP programme.
I say to Ministers that we have to get away from the pots-of-money approach. We made that point to the Secretary of State for Levelling Up, Housing and Communities, who basically agreed with it, and to the Minister for Levelling Up—he got it as well—at the recent session of the Select Committee on Levelling Up, Housing and Communities. Local authorities have 130 different pots of money, not just for transport, for which they have to make a bid to Government. That is ridiculous. We need to provide a more sustainable and joined-up approach to long-term funding.
Partnerships are happening in many areas. All MCAs have now moved to enhanced partnerships, as required by the Government in order to bid for BSIP and secure long-term funding. That is a good approach, but signing up to an agreement for partnership does not stop cuts being made. Bus operators, particularly First Bus in Sheffield, are already planning cuts in services, even with the enhanced partnerships and Government funding. Some have been announced in the last few months and more are proposed.
Operators have said that if Government funding stops in September, about a third of services will be cut. That is a massive, almost unimaginable number. It destroys the whole framework of the network, which we simply cannot allow to happen. Operators are looking at taking out some routes completely, removing evening and weekend services, where they exist, and reducing frequency, which will simply lead to another spiral of decline. I say to the Minister that whatever methods are used—enhanced partnerships, franchising or whatever—there cannot be any improvement from the current situation unless there is more money in the system. Without that, it simply will not work. Local councils are strapped for cash and they will not find those sorts of resources. There are challenges about whether Mayors should have a levy on council tax, which is worth discussing—that is what greater Manchester has done. However, in the end, the Government have to step up. It is no use giving London-type powers to urban areas outside London if they do not also have London-type resources. That is the real bottom line.
Light rail almost gets forgotten about. I do not know if anyone at the Department is really interested in light rail, as it does not seem to be mentioned very often. It is a clean, green form of transport. However, if we compare the light rail systems in our country with what is on offer in other European cities, we see that we are behind the game by many years. That is not a party political point; I put it on the record that we did not do enough as the Labour Government. We did not do enough on bus franchising either. None of that is party political; Governments have not recognised the importance of the subject.
My hon. Friend the Member for Sheffield, Brightside and Hillsborough (Gill Furniss), who is Opposition spokesperson today, will know that we had a good Supertram system developed in Sheffield and built at the beginning of the 1990s. I am almost tempted not to mention this, but I will: we approved it when I was leader of Sheffield City Council, many years ago, and I am really pleased about that. However, there has not been an extra mile laid since then. I am sorry—a few hundred yards have been laid for the Tram Train into Rotherham. Leeds, just up the road, is a major city but it does not have a light rail system. We are so far behind the curve. Manchester has done very well, with great credit due for that. One or two other cities have also started to develop systems, but overall there simply is not enough funding. Light rail needs Government support and the Government must decide if they want a long-term plan for capital investment in it.
I will mention the Tram Train again, because a pilot from Sheffield to Rotherham has been running for more than three years and is very successful. It is a great credit to the then Transport Minister, the hon. Member for Harrogate and Knaresborough (Andrew Jones) that, when the scheme was going pear shaped because of Network Rail’s incompetence—there is an National Audit Office report to prove that—he stepped in and said, “Yes, although the cost of the scheme has trebled, it is worth it to show that the system works.” It does work. It has been working in Karlsruhe in Germany for nearly 30 years and it is not surprising that light-rail vehicles can run on a heavy-rail system—it works.
What is the plan to roll light rail out across the country? We are looking at Beeching restoration services now; there is one from Sheffield to Barrow Hill, through my constituency. We are arguing very strongly for train stations at Beighton and Waverley in the Rotherham constituency next door, and the hon. Member for North East Derbyshire (Lee Rowley) is supporting the extension. Instead of running the heavy rail line into Sheffield Midland station, it should run into the centre of Sheffield with a Tram Train service. That would get people out of their cars and get rid of the congestion we get on the parkway going to Sheffield. We should use the heavy rail network, which is already there, to put trams on the system at no cost and to connect it better to our urban centres. That can be done all over the country. There are opportunities for that out in Stocksbridge, in the north of Sheffield, that we can look at as well.
There are real possibilities and challenges, but it comes down to how we will fund and deliver the Government’s agenda. I have a number of asks for the Minister. Will the Government set out their strategy for public transport in our urban areas? Developing on where we reached with the national bus strategy, are the Government still committed to those objectives in principle and will they set out a way to deliver them in the long term? If they are committed, will the Government set out how that should be funded? There is no use having grand ambitions about not having to look at a timetable for buses on the main road, or having great evening and weekend services, if there is no money. It is words and nothing else. Words are no help to someone waiting at a bus stop for a bus that may be coming in an hour’s time that either does not turn up or, if it does, it turns out that their connection to another place has been removed so they cannot get to where they want to go without an awful lot of effort. In the end, they will not bother going, or they will get in their car, get someone to give them a lift or get a taxi out of frustration.
If we are serious about this, we have to have clear funding commitments. Will responsibility for that now be given to local transport authorities? We have elected a mayor—will they be given the powers and resources to do this? It is absolutely clear from the levelling-up agenda that local mayors have to be able to join up their approach to transport with their approaches to home building, delivery of skills and industrial development. Areas need a joined-up approach to economic strategy.
Mayors can do it, but Government never will. It would require several Departments getting together. I remember going to Manchester and talking to business leaders some years ago, as Manchester was pioneering the move towards greater localism and local democracy. Business leaders said, “We don’t always agree with the councillors and council leaders, but at least we know where they are. We can go and talk to them. If they have the power to do something, we can have that discussion. If Government have the power, we have to go down and visit civil servants in more than one Department and hope that they might be talking to each other, which isn’t always the case.” Therefore devolution of those powers is absolutely key.
Will the Government speed up the franchising process? We have seen how long Manchester, which pioneered it, has taken to go through the process—Manchester is committed, but it has taken forever. It is better than the previous effort, in the Local Transport Act 2008, under which Nexus tried to get franchising in the north-east and was stopped in the courts. It is better than it was, but it is not as simple as it should be.
If the Government really want to give those powers, they should enable them to be used more speedily. As part of that funding commitment, will the Government estimate what it will cost to bring franchising in? There are significant upfront costs, which Manchester has already identified. If we are going to use franchising to improve services, there will be a cost. Franchising is not a magic bullet that once fired makes everything alright overnight. It is a good way to deliver bus services in a strategic, co-ordinated, organised and integrated way, but it is not cost-free. We ought to recognise that.
Let us have a plan for light rail. The Government need to seriously say that it is a way forward. It is a clean, green form of transport, and it should be linked to cleaner, greener buses as well. Although I did not need much reminding, the Minister reminded me that, alongside light rail, we need to have greener buses as a green form of transport—and not just electric buses, but green hydrogen buses. ITM Power in my constituency delivers the green hydrogen—there are different sorts of hydrogen—that is needed to power the bus fleets of the future. It is already doing the refuelling station for Birmingham’s hydrogen buses. We ought to encourage that across the country. I welcome the Government’s zero-emission bus regional areas, or ZEBRA, initiatives and the money being given for electric buses, but where is the commitment to a programme for hydrogen buses as well?
We need strategies for light rail and greener buses, but also tram-trains. We have a pilot that works—what is the point of a pilot unless we get encouragement to roll it out across the country? Many heavy rail networks are underused or, in some cases, unused. We do not have to redo the lines; they are there. We can run hybrid trams on them, so we do not necessarily have to install electric wires for all of them. They can be run partly on the electric system and partly on other fuels, once they get out into slightly less urban areas.
I hope I have indicated a lot of the challenges. There has been a real litany of problems—almost disasters—in the last few years, with decline and demoralisation in the sector. Covid has been a massive challenge, and the Government stepped up to the plate there. However, unless authorities are supported in the future, with a clear strategy from Government and commitments to long-term funding, we will be back here in two or three years’ time waging the same fight because the spiral of decline has continued; so many people in this country who rely on buses have been left without them; congestion has got worse; we have done nothing to tackle climate change; and we have done nothing to tackle pollution either.