Transport System: Economic Growth
1/1010. What steps she is taking to help ensure that the transport system supports economic growth.
14. What steps she is taking to help ensure that the transport system supports economic growth.
18. What steps she is taking to help ensure that the transport system supports economic growth.
Transport is a key enabler of economic growth. That is why we are investing £92 billion to maintain and modernise our roads and railways, deliver major projects such as HS2 and East West Rail, and support leaders in our towns and cities. This will unlock productivity and support a thriving UK economy, enabling over 39,000 new homes and 42,000 new jobs.
As part of the trans-Pennine route upgrades, 25% of the route has already been electrified, with 40% due to be completed by summer 2027. Huddersfield’s famous railway station is also undergoing a £70 million reconstruction. Although there has been a 30-day closure that has led to some disruption for residents in my town, can the Secretary of State set out how the Government are ensuring the economic and social benefits of that investment will be utilised to help regenerate communities in Huddersfield?
I would like to acknowledge that my hon. Friend’s constituents have had to put up with some significant disruption in recent months, but I am confident that when that work is complete, Huddersfield will have a railway station fit for the future. The trans-Pennine route upgrade programme is working closely with local partners to ensure that the £11 billion of investment delivers long-term social and economic benefits for Huddersfield and local communities along the route. This includes supporting skilled jobs, improving connectivity and creating opportunities right now for local supply chains.
Fragmented bus services, trains that refuse to show up before 3 pm on a Sunday in Uttoxeter and Tutbury and an east-west road network that needs upgrading—all those things are holding back my constituents and economic growth in our region. Can my right hon. Friend say how she will unleash the kind of transport links that will support the economic growth that my constituents, businesses and Staffordshire deserve?
I sympathise with my hon. Friend. Some parts of the country have been held back by poor transport links from years of Tory underfunding. I am pleased, though, that with this Labour Government, Staffordshire has been allocated more than £39 million this year in highways maintenance funding, plus £92 million in local transport grant from 2026 onwards. It is now up to the local authority to use that funding to deliver for its residents, and I know he will continue to press it to do so.
I am grateful to the Secretary of State for the recent boost to the local transport grant for my constituents in mid-Cornwall, but one of the barriers to more transformative rail investment in Cornwall remains a lack of shovel-ready projects to proceed with, which I have been talking about with residents in the western clay country and Fowey. What steps is the Secretary of State taking to ensure that we can get Cornwall’s railways back on track?
My hon. Friend never misses an opportunity to talk with me about the importance of improving the transport system for his constituents. Through the local transport grant, Cornwall council will receive more than £25 million, which local leaders can use to support schemes in line with local priorities. We will issue guidance later this year so that local authorities can decide how to use their multi-year allocations, and I encourage my hon. Friend to take up this cause with his local council.
Following the decision to cancel the A303 improvements at Stonehenge, the focus in Wiltshire is on what else can be done, particularly around Salisbury, to remove some of the enormous congestion that exists that clearly impacts on economic growth. I was grateful for the engagement with National Highways last night on the Wyndham bridge plans, but can the Secretary of State set out what she sees as an alternative investment in Salisbury and south Wiltshire, following the A303 decision?
I believe that the right hon. Gentleman has met my colleague, the former Minister for the future of roads, my hon. Friend the Member for Nottingham South (Lilian Greenwood), where they possibly discussed the A36 bypass around Salisbury. I am happy to meet him and talk to him further about any other ideas that he may have, in addition to the conversations he has already had with National Highways.
Aviation is vital to economic development and transport in the highlands and islands. The European geostationary navigation overlay system would have the massive benefit of improving the security and reliability of those flights, and they would be able to land in conditions than they cannot currently land in. What progress is being made towards that?
We are working on this issue at pace. The aviation Minister, my hon. Friend the Member for Selby (Keir Mather), is cognisant of the benefits that scheme can bring and would be happy to keep the hon. Gentleman updated.
Upgrading the Ely and Haughley junctions would enable a substantial shift of freight to the rails, which is important for net zero targets, for relieving congestion and for supporting haulage and logistics businesses. Will the Secretary of State therefore meet me, regional businesses, cross-party political leaders and the Suffolk chamber of commerce to look at the options for funding and upgrading this project, as outlined by Network Rail?
I recently visited Norwich, where business leaders and representatives made the case to me for improvement works at the Ely and Haughley junctions. I am aware of the importance of freight on those lines, given the adjacency to the port of Felixstowe. We have had to take some difficult decisions in this spending review about the rail enhancement programme. While we understand the benefits of this scheme, it has not been possible to fund it in this spending review period. However, it is part of the future pipeline of work that we will be looking at.
I call the shadow Minister.
There is no passenger growth commitment in the Railways Bill, just the expectation of inflation-busting fare rises in the Budget. Holidaymakers are being used like a piñata, with a 13% rise in air passenger duty already in prospect, and airport business rates will be passed on to them too. Ports have been throttled by delayed decisions on connectivity with the rail infrastructure. Motorists are facing potential fuel duty rises, with insurance premium tax rises and pay-per-mile hanging over them. Which of the above measures is supporting, rather than hammering, economic growth?
I can tell the right hon. Gentleman what this Government are doing to support economic growth when it comes to the transport system. We have given the green light to over 50 road and rail projects in the spending review, given planning permission to airport expansion at Luton and Gatwick, and invited proposals for a third runway at Heathrow, in stark contrast to the dither-and-delay approach of the previous Government when it came to the aviation sector. I am not going to take any lectures from him when it comes to economic growth and improving the transport system in this country.
Everyone I have spoken to in the UK automotive sector knows that the Government’s 2030 targets for electric vehicles are unachievable, will cost good UK jobs and are a boon to China as we see BYD sales up by 350% year on year, to 3,500 in the latest October figures. In fact, although the Government said that these targets would deliver certainty, the head of one major car manufacturer told me that the only certainty is a “terminal diagnosis” for the automotive sector in this country. When will the Government abandon these damaging targets, which are hammering UK jobs and UK economic growth?
The right hon. Gentleman really does need to get with the programme. We have seen the best month ever when it comes to sales of EVs and hybrid vehicles. He talks about Ford. In fact, since launching our electric car grant in the summer, over 30,000 drivers have been helped to purchase an EV, including the Ford Puma and the Ford E-Tourneo Courier. There is a discount of £3,750 for individuals buying those models.
I call the Liberal Democrat spokesperson.
For decades, rail fares have been subject to above-inflation increases, and many people feel that prices such as £7,780 for an annual season ticket from Didcot to the London travelcard area do not represent good value for money and hinder the railways’ potential to reduce congestion and contribute to economic growth. Does the Secretary of State support the idea of a rail fares freeze? If she does, what representations has she made to the Chancellor ahead of the Budget?
The hon. Gentleman tempts me to divulge conversations that I have had in advance of the Budget. I am sorry to disappoint him, but I am not going to do that. I am acutely aware of the importance that the travelling public place on affordability, and of course I want to find a way to help those who rely on our railways, given the cost of living pressures that people are experiencing. I have spoken before, though, about the scale of the public subsidy that we are currently putting into the railways, and we have to get the right balance between supporting rail users and being fair to the taxpayer.