HS2 Cancellation and Network North

Wera Hobhouse Excerpts

Wednesday 17th January 2024 Westminster Hall

[Wera Hobhouse (Bath) (LD)]

It is a pleasure to serve under your chairship, Mr Davies. I congratulate the hon. Member for Stoke-on-Trent South (Jack Brereton) on bringing this debate to the Chamber. It continues to be important to talk about HS2.

Rail should be a lifeline for our communities, connecting every part of the country through green public transport. After months and years of defending HS2 and spending millions of pounds preparing for it to go ahead, we are left with nothing but a missed opportunity, now that an essential part of it has been scrapped. I have long supported HS2. High-speed rail should modernise our railways, connect more of the country and increase capacity. Our rail network struggles with constant delays, cancellations and crowded trains. HS2 going all the way should have been an important step forward for all our communities.

However, HS2 faced death by a thousands cuts. Its delivery was characterised by Government mismanagement. It was hollowed out, costs were allowed to spiral out of control and the Government turned their back on Manchester and Leeds. Without additional capacity, any plans to improve our railways will be limited, and we will be left with a rail system that cannot effectively connect the whole country.

Public transport will be crucial to our meeting our net zero targets. It is a clean, green alternative to cars, and it showcases the benefits of net zero to our communities. Transport is the largest emitting sector in the UK. Rail produces over 70% less carbon dioxide emissions than the equivalent road journey. We must encourage a modal shift away from polluting transport modes towards greener public transport such as trains. The Government know that, yet Network North contains plans to move £8 billion meant for the railway to supporting road use. We need to win hearts and minds for net zero, and demonstrate to people that the green transition brings opportunities. However, at no point have the Government attempted to bring the public with them. Before cancelling the northern leg of HS2, they put a huge amount of doubt in people’s minds about cost and impact.

We should be positive about public transport as a solution. HS2 and phase 2 should have been sold as a great improvement to our rail infrastructure, rather than an expensive inconvenience. Each train unlocked by HS2’s extra capacity could have removed over 120 lorries from the roads. Britain’s highways are already among the most congested in Europe. The decision to scrap the northern leg of HS2 will lead to up to half a million more lorry journeys up and down the country, and a lot more congestion in our towns and cities.

Tens of thousands of jobs and a great economic opportunity have been lost. Why should anybody invest in the UK when the Government do not provide long-term investment opportunities? The Institution of Civil Engineers was clear that delaying HS2 would mean that construction firms shifted their focus to other countries. Our global trade is also affected, and the British Chambers of Commerce emphasised that we need more capacity for that reason. One in four sea containers arriving or departing from a port is carried by rail. Our global partners need to be able to trust that we can move at speed and with capacity. Now businesses have been left with a gap in their strategic plans, and where is the plan to establish Great British Railways? Why is the transport Bill delayed?

The whole HS2 debacle has exposed the lack of an industrial strategy. The Government should consider giving a statutory underpinning to the publication of a national infrastructure strategy every five years. We need certainty, and the scrapping of the northern leg of HS2 just shows that when we dither and delay about long-term strategic plans, all we have is loss and absolutely no gain.

--- Later in debate ---

[The Minister of State, Department for Transport (Huw Merriman)]

It is a pleasure, as always, to see you in the Chair, Mr Davies. I thank my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) for securing this important debate on HS2 phase 2a and Network North, and for the manner in which he set out his case.

As has been mentioned, on 4 October last year, the Prime Minister announced that phase 2a of HS2, along with phase 2b—the western leg—and HS2 east, would be cancelled, and that funding would be redirected towards alternative transport projects in the north and midlands through Network North. Let me give a bit of the background and rationale. The HS2 programme accounted for over one third of all Government transport investment. That prevented us from spending money on other genuine priorities, and it could be argued that, if we were not investing in the areas that matter to people, we were doing little to improve the journeys that people make the most.

Network North will drive better connectivity across the north and midlands, with faster journeys, increased capacity, and more frequent and reliable services across rail, bus and road. Rather than delivering phase 2a, the phase 2b western leg and HS2 east, the Government are redirecting £36 billion to hundreds of transport projects across the country, one of which, of course, is in Shipley.

[Wera Hobhouse]

Will the Minister give way?

[Huw Merriman]

I will come to the hon. Member shortly.

Every region is now set to receive the same or more transport investment, on an unprecedented scale. We will still deliver HS2 between Euston and the west midlands as planned: 140 miles of new railway and new stations at Old Oak Common and Birmingham interchange. HS2 tracks will end with two branches in the north: one to Curzon Street station in central Birmingham and one to Handsacre, near Lichfield, where HS2 trains for Manchester, Liverpool and Scotland will join the west coast main line.

Delivery is well under way, and there are 350 active sites. Initial high speed services will start between 2029 and 2033, and will run between Old Oak Common in west London and Birmingham Curzon Street. We will appoint a development corporation, separate from HS2 Ltd, to manage the delivery of the project at Euston, and create a transformed Euston quarter that will potentially offer up to 10,000 homes.

I turn now to land and property safeguarding with regards to the disposal that will come into effect now that phase 2a is not being completed, and I will then come to point made by the hon. Member for Portsmouth South (Stephen Morgan)—that it is not possible at the moment for the Labour party to determine what it will do. If he listens to this part, he will realise it is entirely possible. We know it is just a smokescreen: the Labour party cannot make a decision because it does not know what to do.

Safeguarding on the former phase 2a of HS2 between the west midlands and Crewe will be lifted very shortly. The lifting of safeguarding does not in any way trigger the start of a sell-off of property already acquired. HS2 Ltd has ceased the issuing of any new compulsory purchase notices on phase 2a and is now working to close out all transactions across phase 2 that were outstanding on 4 October. Where we can agree with property owners to withdraw from an agreed acquisition, we will do so, but in many cases we are under a legal commitment to proceed. In others, we have discretion and we are examining those on a case-by-case basis, considering the circumstances of the claimant and the implications for the taxpayer to identify the right way forward.

We are currently developing the programme for selling land acquired for HS2 that is no longer needed, and we will set out more details in due course. We will take the time to develop this programme carefully to ensure that it delivers value for money for the taxpayer and does not disrupt local property markets. Under what are known as the Crichel Down rules, land and property acquired through compulsory purchase or under statutory blight, and which is no longer required, should in certain circumstances be offered back to its former owner at its current market value. We will of course engage with all affected communities throughout this process.

Therefore, the choice will be quite clear for the Labour party. As I said, the safeguarding will shortly be lifted, and the land is not owned by the Secretary of State; it is owned by other property owners who are stymied at the moment from doing what they may want to do with it because safeguarding is imposed. No land will be sold off until we are ready. It is perfectly feasible for the Labour party, if it supports HS2 going ahead, to say that it will put the safeguarding back on, which would be relatively straightforward. As none of the land will have been sold, it can just continue.

However, the Labour party will not say that because it does not know whether it wants it to go ahead. The hon. Member for Portsmouth South mentioned going to Manchester and not committing to HS2 phase 2a or 2b, but that is exactly what the Leader of the Opposition did last week. He went to Manchester and said, “We will not proceed with that project.” Even worse, I am going talk to all these projects, and hon. Members are here to talk them up, but where are the Labour MPs to talk up these projects across the north and the midlands? Nowhere to be seen. Those projects have not been committed to, so where will the £36 billion that we have committed to these projects go? The silence is deafening.

[Wera Hobhouse]

Will the Minister give way?

[Huw Merriman]

I am not going to give way because I am going to come to the hon. Lady shortly. I want to refer to the points that my hon. Friend the Member for Stoke-on-Trent South raised on the local causes. He said that he is delighted with the decision on Meir station—I was delighted to join him up at Meir to see the site— and since then, he has been really successful in his campaign. That project aims to provide a new station in the town of Meir on the existing Crewe-Derby line, and it was awarded initial funding to develop a strategic outline business case as part of the first round of the restoring your railway ideas fund. The full business case is expected to be submitted in July of this year, and decisions on further funding for the project will be made within the context of the broader programme. As he knows, his station is mentioned in Network North; we are committed to it.

My hon. Friend mentioned Stoke and Leek, and a bid to reinstate the railway line between Stoke-on-Trent and Leek has been made to the restoring your railway programme. The proposal examines the potential for six intermediate stations on the route, and the Network North announcement included the intention to progress the Stoke-Leek restore your railway scheme to delivery. I am grateful to him for all his work on that.

Longton station is another that I visited with my hon. Friend. That original station project includes public realm, cycle hub, waiting shelters and accessibility improvements. The council has faced a number of challenges in relation to cost pressures, delays and technical issues. The estimated cost of the Longton project is now forecast at £3.5 million to £4 million, compared to £1.1 million at the time the funding was awarded. We are committed to working with Stoke-on-Trent City Council—Network Rail has entered into a development services agreement, and the council has indicated that the project is forecast to complete by September 2025. On junction 15, which my hon. Friend mentioned, improvements are being developed and delivery would be on a similar timeline as improvements to the A50. Those are all subject to a supportive business case.

On a point mentioned by my hon. Friend the Member for Lichfield (Michael Fabricant), I can assure him and my hon. Friend the Member for Stoke-on-Trent South that HS2 will be delivered with a branch to Handsacre near Lichfield. In the absence of phase 2a, Handsacre remains the only connection between the high-speed infrastructure and conventional rail. I can confirm that work is being undertaken to assess the options to enhance the railway in the Handsacre area, to support train services and capacity, making use of the £500 million set aside in Network North. I can give my hon. Friend the Member for Lichfield that reassurance, which he can pass on to our fantastic Mayor of the West Midlands, Andy Street.

I will turn to the other contributions—none from Labour MPs because they did not make any. I will start with my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) and thank her for again championing the Ely and Haughley capacity enhancement project. That will increase freight trains from 36 to 42 trains a day from the port of Felixstowe, allowing trains to go into the midlands, rather than further south. Network North has confirmed its support. It is a project that I have long championed but we have been unable to put on the list due to HS2 spend. Because of this decision, we now can. The next steps are for a full business case, and we are engaging with the Treasury. I take my right hon. Friend’s point about getting back the Network Rail team on the Haughley preparation work project. That is something that we are looking at in the Department, and I thank her for her points.

I will turn to other contributions. My hon. Friend the Member for Lichfield, in addition to his other intervention, referred to funding for the cross-city line. Perhaps I can point him towards the city region sustainable transport settlements and the local integrated transport settlements, which are two funds from Network North. As well as the list of projects we have committed to deliver, we are also committed to deliver money on a devolved basis, so that local transport authorities can determine on which projects they want to spend their money.

For example, an extra £1 billion has been put into the city region sustainable transport settlements fund for the west midlands, which takes it up to £2.64 billion, allowing the west midlands to make its own choices, because there is devolution within this programme. My hon. Friend the Member for Stone (Sir William Cash) mentioned the case for new stations, showing their business case worth. He is absolutely right regarding Stone, and we hope that will be the case for Meir. I also want to thank him for his work with Trevor Parkin, and for the time he took to drive me through his constituency, so that I could see the impacts that he talked about.

My right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson) asked me to go away—in the most polite terms, I am sure—and assess the west coast main line timetable. I am happy to do so and will write to him. I hear his call for more pothole funding for his roads. Every hon. Member will have seen money given to them for pothole funding. It is essential that it is spent well, and I hear his call that more should be spent.

I now come to the contribution from the hon. Member for Bath (Wera Hobhouse), which I found extraordinary. She made the case for HS2, and, of course, I agree. That is why we are delivering 140 miles of it. I find it extraordinary that I was delivering leaflets in Chesham and Amersham for the Conservative party, talking up the project on similar lines to hers, yet the entire Liberal Democrat campaign in Chesham and Amersham was to run down HS2 and call for it to be cancelled. I have no issue with individual Members campaigning against HS2 because they always have done, but for a party in a by-election to focus its entire campaign on cancelling a project only to then stand here and talk it up—sorry, only a Liberal Democrat could do that.

The leader of Plaid Cymru asked what HS2 does for Wales. The reality is that it was always an England and Wales project, which is why with Network North we are allocating £1 billion to the electrification—

Great Western Main Line

Wera Hobhouse Excerpts

Tuesday 9th January 2024 Westminster Hall

[Wera Hobhouse (Bath) (LD)]

It is a pleasure to serve with you in the Chair, Ms Vaz. I congratulate the hon. Member for Gloucester (Richard Graham) on bringing the debate to this Chamber. I will concentrate on green transport because I am the climate change spokesperson for the Liberal Democrats. Talking about transport and climate change together is what I always do. To meet our net zero targets, we must make it easier to travel by train. Rail should be a lifeline for our communities that connects every part of the country through green public transport.

Before I discuss issues with our rail lines, I will mention that in November, I joined members of the Bath community and representatives from the armed forces and emergency services at Bath Spa station to hand over poppy wreaths, which were transported by train to the war memorial at Paddington station. The “poppy trains” began during covid lockdowns when local memorial ceremonies were not always possible. The initiative has been so well supported that GWR has now made it an annual tradition. It allows those who cannot make a long journey to London to be part of the commemoration, and it shows the benefits that the railway can bring to communities well beyond our regular services. I commend GWR for that wonderful event, and I echo that it is important for all of us as MPs to work well and have good working relationships with GWR. I am looking forward to doing so in the future.

However, public confidence in the railways and our net zero targets are linked. Transport is the larger emitting sector in the UK. Rail produces over 70% fewer carbon dioxide omissions than the equivalent road journeys, yet the current state of our railways is having the opposite effect because people have been dissatisfied with the service for a very long time.

I regularly use the train from Bath to London on Sundays, and there is not a single journey where there is not an issue. It affects anybody who uses the railway to get to work. The number of delay repay claims for GWR train journeys more than doubled between November 2022 and November 2023, and passenger rail performance is on the decline. Over 40% of trains were not on time between January and June last year. I hear constantly from rightfully angry constituents whose trains are late or cancelled, and the constant disruption impacts on people’s daily lives. Why should people feel confident about using the railway if every journey is a gamble? As we have already heard today, if people cannot rely on the railway, they will go and use other forms of transport, particularly their cars.

This debate comes as the Government oversees the largest increase in rail fares for a generation. The UK already has some of the highest rail fares in Europe, and fares are still set to rise by nearly 5% in March. The public are paying more for less on our rail network, and commuters are particularly affected. The short journey between Bath and Bristol was previously the most expensive rail journey per mile in the world, and Ministers cannot continue to turn a blind eye to these issues. I recognise that a lot of what we are talking about this afternoon is not just GWR’s problem, but a Government problem, and we have the Minister here to answer some of our concerns.

Ticketing is also complicated. Last year, GWR charged £46 for a peak return from Bath to London on 17 November. For the same journey on 30 November, the cost shot up to £94—more than double. We need a fares and ticketing system that makes taking the train simpler and more affordable, and I hope that we can get some answers from the Minister this afternoon. We in Bath are lucky to welcome so many foreign visitors, but it can be particularly confusing for tourists to use unfamiliar apps or ticket machines, and it needs to be a lot easier for them.

We also need to make our trains greener, and electrifying our railways is an essential step. I know that this is not GWR’s problem; it is basically about having a commitment from the Government, and I would like to hear more on that. However, the overall pace of electrification is lagging. Bath has a big air pollution problem. The electrification of the line through Bath has been on hold for years, and dirty diesel trains are still going through the city. Air pollution kills. Not getting on with electrification is a complete dereliction of duty not just to our net zero plans, but to public health.

The Treasury blocked a £30 billion plan to electrify Britain’s railways over the next 30 years. I have an ally in GWR who wants to see that happen. The Government said that Great British Railways would produce a 30-year plan to electrify the railways. However, that organisation is not expected to be fully up and running until later in the year at the earliest. I would like to know about the plans to finally establish Great British Railways, which has had cross-party support. Why the delay?

Strong public transport will take us to net zero and connect our country. Passengers deserve to feel confident in their railways, and people need access to clean, green and affordable trains. Only then will we build the sustainable, modern and affordable railway that we are all looking forward to.

Refurbishing Trains: Contracts

Wera Hobhouse Excerpts

Thursday 7th December 2023 Commons Chamber

[Huw Merriman]

I hope my hon. Friend’s constituents will be comforted by the order, because it is not just an order for new TransPennine express trains but a complete upgrade of the TransPennine route. The UK Government are spending more money on the TransPennine upgrade than was spent on the Elizabeth line, and that will mean delivering a better service. I was with the managing director of TransPennine trains on Monday up in Yorkshire and we were discussing just that. We need to improve the service and the rolling stock.

[Wera Hobhouse (Bath) (LD)]

Upgrades to our trains must include electrification, but electrification is at a standstill, with only 101 miles of track being electrified this year. East West Rail will not be electrified as standard, and dirty diesel trains are still going through Bath. Will the Minister commit to a long-term plan for electrification?

[Huw Merriman]

The Prime Minister’s Network North plan did just that—electrification for Hull, between Sheffield and Manchester, and between Sheffield and Leeds. They are vast projects, not small projects. With regard to East West Rail, that is the upgrade of an existing line, which has its bridge sizes all the way through from Winslow to Bletchley, so it is difficult to put electrification on to that part. Let me remind the hon. Lady that there has been more than 1,200 miles of electrification in the past 12 years compared with just over 60 miles in the 12 years before that. I think that is a pretty good record.

Oral Answers to Questions

Wera Hobhouse Excerpts

Thursday 26th October 2023 Commons Chamber

[Jesse Norman]

My hon. Friend knows that the Government have supported the use of hydrogen in road vehicles for over a decade, including the installation of hydrogen refuelling infrastructure where there is sufficient demand. I should also say that notably, Toyota recently announced the tremendous progress that it appears to have made in commercialising solid-state batteries. That is a very encouraging sign across the piece, not just for hydrogen but for electric.

[Wera Hobhouse (Bath) (LD)]

We have already heard that the uptake of electric vehicles is closely linked to charging points. When will the Government close the gap in charging costs between those who have the ability to charge at home and those who rely on a public charging point?

[Jesse Norman]

As the hon. Lady knows, there is wide and differing experience across the charging network. Many people are able to charge at home and many people are able to charge through the increasingly large public network. The way in which electricity prices have changed has tended to dominate changes overall, but she will, I am sure, share my pleasure that the new charge point regulations mean that we can now have a much more competitive market for charging across all the different forms of infrastructure.

Civil Aviation

Wera Hobhouse Excerpts

Wednesday 18th October 2023 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

We Liberal Democrats were supportive of relaxing the 20:80 rule during covid; we could not have allowed airlines to fly empty flights just so they could keep their slots. The situation is now more complex. The dysfunction in the aviation industry now is just as much about managerial capacity failings as it is about the problems stemming from the pandemic.

There have been numerous allegations of abuse of the temporary rules by some airlines to flex their muscles in the marketplace. We must guard against anti-competitive practices, which make it hard for new entrants to enter the market. Alleged attempts to hoard valuable Heathrow slots have an impact on the availability, choice and price of flights. Airlines, airports and travel operators are one of the biggest single contributors to global emissions. It is crucial that we ensure that flights are taking off only when there is proper demand for them.

There has been recovery in passenger demand, but there is continued uncertainty and a lack of resilience in the industry. Recruitment remains a challenge. Demand on some routes remains below pre-pandemic levels, and changes to our working patterns have caused a drop in business travel. We must accept that these new patterns are the norm. The motion proposes a package of measures for the winter 2023 season that lets the normal 80:20 “use it or lose it” rule stay. However, there remains some limited flexibility for airlines to keep hold of their carrier slots at airports through a small pre-season hand-back allowance of 5%, and a continuation of the previously adopted justified non-utilisation of slots measures.

Although we are broadly supportive of the Government’s plans, we are concerned that there has not been parity of Government support for public transport. The rail industry and public transport such as buses are also facing changed markets. Railways still face a £2 billion annual fares shortfall from pre-covid days that the Government are unwilling to fill. The bus and coach industry is experiencing driver shortages. There is no justification for the Government to protect just one industry from inefficiencies and uncertainties in the market, and they must outline a timeline for when the covid mitigations given to airlines will come to an end. Why prioritise aviation over other modes of transportation? Airlines need clarity and time to prepare, but there must come a point when the Government tell industry that it needs to get on with things itself.

Zero-emission Vehicles, Drivers and HS2

Wera Hobhouse Excerpts

Monday 16th October 2023 Commons Chamber

[Mr Harper]

My right hon. Friend makes a very good point about what we should prioritise when funding roads. He should know that one of the important changes I have made is to make sure that our active travel team is focused on delivering cycling and walking schemes that increase choice, rather than focusing on driving people out of their cars. I hope he will welcome that important change.

[Wera Hobhouse (Bath) (LD)]

The Secretary of State says that his party is not anti-motorist, but it is clearly anti-public transport. We Liberal Democrats are not anti-motorist either, but we are unequivocally pro-public transport. Rail produces 76% less carbon dioxide emissions than the equivalent road journey, and each freight train removes up to 76 lorries from our roads. The decision to scrap the northern leg of HS2 will lead to up to half a million more lorry journeys up and down the country, resulting in a lot more congestion in our towns and cities. Is the Secretary of State not concerned that freight that would have gone on to the railway will now be forced on to the roads, increasing our carbon emissions and congestion?

[Mr Harper]

I do not agree with the hon. Lady’s characterisation of our view on public transport. First, we have already put in a significant amount of extra money this year and, from the savings, still more is going into our bus system. Our £2 bus fare cap is making it much easier and cheaper for people to use public transport. Twice as many journeys are made by bus than by rail. She should also know that HS2 spending was crowding out other important investments. One of the things we are now able to fund is the £600 million project at Ely junction that will increase capacity for both passengers and freight to the important port of Felixstowe.

West Coast Main Line Franchise

Wera Hobhouse Excerpts

Tuesday 19th September 2023 Commons Chamber

[Jesse Norman]

The hon. Lady did not ask a question, but I understood every word of her speech. Since she is new to the House, she might want to have a conversation directly with the rail Minister about this: he is highly engaged on these issues, as colleagues across the Chamber will know. If she has not seen any improvement in relation to her constituency, at least she has the satisfaction of knowing that improvements have been recognised around the House.

[Wera Hobhouse (Bath) (LD)]

The Government have ensured the immediate future of Avanti West Coast, but the same cannot be said for Great British Railways, which has an office but no powers. We urgently need a body to provide oversight and accountability to fix Britain’s broken railways. The Government are in favour of that, so can the Minister confirm that legislation to create Great British Railways will be announced in the King’s Speech?

[Jesse Norman]

I thank the hon. Lady for her tempting invitation, but I am not going to second-guess His Majesty on what he will announce in the King’s Speech. What I can say is that this is a topic of great interest to the Government and, as she will know, the Department is making considerable progress in the non-legislative mode that we are in at the moment to achieve many of the goals we all share.

UK Automotive Industry

Wera Hobhouse Excerpts

Monday 18th September 2023 Commons Chamber

[John Redwood (Wokingham) (Con)]

I rise to urge the Government to be careful about rushing to close our factories making diesel and petrol cars before we have established the electrical revolution and are confident that we have created the capacity and the extra jobs in the alternative power system that the hon. Member for Croydon Central (Sarah Jones) is so passionately recommending. I would ask the Labour Opposition, who seem even keener to close our petrol and diesel capacity more quickly, to consider why Germany, with a far larger automotive industry than our own, has decided with the EU to delay the ban on the sale of new petrol and diesel vehicles to 2035 rather than 2030, and also why Germany thinks it needs to make provision for the possibility that it can make cars that work on synthetic fuels or some derivative of hydrogen as an alternative to the battery system as a way of getting to a low carbon output. Germany might not be wrong. I think that we will discover as a country that it is much easier to close factories and terminate the production of petrol and diesel cars than it is to get those much-wanted electrical factories into operation, with all the supply chain that that requires.

[Wera Hobhouse (Bath) (LD)]

Is the right hon. Gentleman not making an important admission that although the EU has delayed ending the manufacture of combustion engines, there are important exemptions in that those cars should be run only on synthetic fuels and sustainable fuels?

[John Redwood]

I have said that the EU was keen to explore the synthetic fuel opportunity. In the meantime, it is not recommending the closure of traditional vehicle factories at pace. Indeed, the EU has recently required of its member states that they should not only speed up the roll-out of electrical charging points—which will clearly be needed if people are to buy more electric cars—but roll out the provision of hydrogen refuelling places, not synthetic fuels. It is probably easier to deal with synthetic fuels, because a good synthetic fuel that is liquid at normal temperatures can be used in the usual distribution system, using the sunk assets that already exist in the petrol and diesel system. Indeed, one of the ways to introduce synthetic fuels more easily would be to gradually increase the proportion of synthetic fuel mixed into traditional fuels, as we have with E10 petrol and as is being talked about for sustainable aviation fuels, where there are target percentages for the introduction of lower carbon ingredients in the fuels.

--- Later in debate ---

[Wera Hobhouse (Bath) (LD)]

It is a pleasure to follow the hon. Member for Rugby (Mark Pawsey). I echo him in urging the Government to stick to the 2030 target—a point that I will make in my speech.

The climate emergency will not go away. Surface transport is responsible for nearly a third of the UK’s carbon emissions, and more than half of surface transport emissions come from private cars and taxis. The electric vehicle transition is therefore vital. The 2030 target to end the sale of new petrol and diesel vehicles is an important tool to bring us towards decarbonisation. It gives the industry the certainty for which it so often asks, and it has worked: sales of EVs in the UK are exceeding expectations, according to Chris Stark of the Climate Change Committee. That gives us confidence that the 2030 target is achievable, proving all the naysayers wrong. Reports suggest, however, that the Government have been tempted to cut the “green crap” and that they will water down this important target. The permanent fear that the UK Government will go back on their word weakens our automotive industry. A tough target is better than persistent U-turns.

We Liberal Democrats have consistently encouraged the automotive industry to embrace the future and to transition from petrol and diesel to electric cars. We need a Government who are equally committed and who will not be derailed by their Back Benchers. I am very pleased that BMW will build the new electric Mini in Oxford; it is a significant investment that demonstrates the economic opportunities. I am even more excited that Somerset will host a new gigafactory for battery production. Those are important milestones on which we must build.

We now need a longer-term strategy to truly grow the industry. Transport & Environment UK is worried about how much of the more than £800 million in the automotive transformation fund has been spent. It is concerned that wider investment cannot be maintained without expensive subsidies. Uncertainty around the zero-emission vehicle mandate and the lack of an overall industrial strategy add to those concerns.

The Government have a poor track record when it comes to building electric vehicle supply chains. The collapse of Britishvolt was a staggering blow. When he was Chancellor, the Prime Minister said that Britishvolt

“will produce enough batteries for over 300,000 electric vehicles each year”.

Now Britishvolt will produce none. Mistakes were made at the company, but was there really nothing that the Government could have done to prevent the loss of such an important business?

If we are to build an EV industry in the UK, we must ensure that there is enough demand. The Government must support manufacturers as global players. As we have heard, a clause in the UK Government’s Brexit deal means that at the end of this year, British-made EVs will face tariffs of up to 22% when exporting to the EU if they do not contain 40% local content. That puts UK manufacturers at a huge disadvantage. I would like to know what the Government, rather than overblowing the perceived Brexit benefits, are actually doing about an acute issue that is putting the future of motor manufacturing in the UK at great risk.

Although the sales targets for commercial EVs are very encouraging, private uptake of EVs is proving more difficult. We have heard many of the reasons for that, but the main barrier for potential private buyers, apart from cost, remains charging anxiety. So far, EVs are not a realistic option for householders who cannot park or charge their cars outside or near their homes. In last year’s EV infrastructure strategy, the Government made no firm commitment that infrastructure roll-out would rise in line with EV market uptake. Recent Government statistics show that only 19% of all chargers are rapid chargers. That is a problem for long-distance travel: people cannot be expected to wait for hours to charge their car when they are on the go.

We Liberal Democrats would invest urgently to speed up the installation of rapid charging points throughout the country. Rapid chargers must be installed where people will use them. Motorway service stations must therefore be the No. 1 priority, but we must consider other locations, too.

[John Redwood]

Is the hon. Lady also worried that there is a lack of cable capacity under our streets and of grid capacity to get the power to those fast chargers? How long will that take to resolve and how will that be done?

[Wera Hobhouse]

I share the right hon. Gentleman’s concerns, which is why we consistently make the case for upgrading the grid. That is one of the most important things for getting to net zero in the UK, not just for vehicle charging, but for the roll-out of all the electric infrastructure we need for our many renewable energy installations. I share his concern, but the solution is not to stop the roll-out of electric vehicles; it is to improve the grid and get things sped up as quickly as possible.

If, for example, electric charge points are installed in places where non-electric vehicles park, such as in lamp posts or bollards, valuable charging space will be lost. We Liberal Democrats would give grants to parish and town councils to install charging facilities where they will actually be used—for instance, at village and community halls.

It is important that the Government do not stop the incentives for EV uptake. They must stop penalising people who cannot charge their EVs at home. Drivers currently pay 20% value added tax to use a public charge point, compared with 5% VAT for home charging. That unjustifiable discrepancy must end and the VAT rate for all electric vehicle charges must be equalised at 5%.

Electric vehicles will drive us down the road to net zero. Infrastructure and incentives will be vital. What we need is a Government who are willing to fuel this transition, rather than being content to trundle along in the slow lane.

[Saqib Bhatti (Meriden) (Con)]

I refer the House to my entry in the Register of Members’ Financial Interests. I am delighted to speak in this debate, because we cannot have a debate on this issue without consideration of the role of the west midlands. I am honoured to follow my hon. Friend the Member for Rugby (Mark Pawsey), who has spoken passionately both in this debate and previously on this topic. We also cannot have this debate without talking about the role of my constituents in Meriden and in Solihull borough.

The automotive industry is more than just an employer in the west midlands; it is part of our DNA. The earliest reports of a car manufacturer stretch as far back as the late 19th century. We have been the home of a number of household names, most recently Jaguar Land Rover. Some of these stats have already been mentioned, but to give context to the power of the automotive industry in the west midlands, in 2019 we made more than £14 billion-worth of exports—double the total of any other region in the UK and about 36% of the UK total.

The UK automotive sector employs about 160,000 people across the country, a third of them in the west midlands. The Jaguar Land Rover plant in Solihull borough has 9,000 employees, many of them my constituents. The plant is responsible for some iconic cars, including the Range Rover, the Range Rover Sport, the Discovery and the Defender, and long may that continue.

However, like the rest of the country, the automotive sector is in a decade of transition, and it is the transition to electric vehicles that I want to focus on. As has been said, the one thing that businesses hate and despise is uncertainty. It undermines confidence, makes it impossible for them to plan and invest, and ultimately results in lost opportunities. While I understand the challenge of the 2030 transition, the decision has been made, and now it is our job to support the automotive sector to achieve its goals. I am pleased that the commitments from Government have continued to highlight that, and we must continue to do so.

To give an example, Jaguar Land Rover has already committed £15 billion to developing new electric models, and we already know about the £4 billion investment in the gigafactory in Somerset. In the west midlands over the past five years production has significantly ramped up and billions have been invested in the region. Despite the naysayers, the doom-mongers and all those talking down the automotive sector, the transition to fully electric vehicles has not scared off the industry—in fact, it has spurred it on. I also shared the concerns of my hon. Friend the Member for Rugby when the announcement was first made, but the opposite was true: Jaguar Land Rover has a seven-year investment plan and is already on its way. I think it will be fully electric in its vehicle production by 2025, way earlier than the 2030 deadline, and just last week we heard about BMW investing £600 million in Oxford to build the iconic Mini.

We have heard concerns about EV charging, but I take a different view. I think it is for the private sector to deliver it. Just two weeks ago, at the National Exhibition Centre in my constituency, my right hon. Friend the Chancellor, the Mayor of the West Midlands Andy Street, and I opened the UK’s largest EV charging network, arguably the largest in Europe. I say arguably, because I think it is the largest in Europe, but others argue to the contrary. Certainly it is the largest in the UK, and it now has the capacity to charge 180 vehicles at the same time with fast charging. If you are ever in my part of the world in your EV, Madam Deputy Speaker, please do stop over at the National Exhibition Centre. You will see the signs. The key thing is that that was all driven by private sector investment.

[Wera Hobhouse]

I hear what the hon. Gentleman says about private investment, but is he not worried, as I am, about how many different apps and different ways to charge their vehicles consumers will have to have? How does he propose that that could be unified to make things easier for consumers?

[Saqib Bhatti]

That is an interesting point; there was a conversation about that on the day. There is a recognition that there will be a variety of ways that charging can happen, and the industry itself says it will adapt. The opening of the car charging park, which as I said is the largest in the UK, with the industry committed to doing much more across the country, is a prime example of how the private sector will lead the way. The hon. Lady made a good point that charging networks have to be in a place where the cars can get to them, but I am confident and I have more optimism than she does. I think they will get there through pure necessity: the consumer will demand it and the market will supply it.

I was pleased to see my hon. Friend the new Member for Uxbridge and South Ruislip (Steve Tuckwell) join us in the House. I campaigned for him and I think the people of Uxbridge and South Ruislip made the right decision. However, after the campaign a parallel was drawn, wrongly in my opinion, between a deeply damaging ultra low emission zone policy imposed by the ideological Mayor of London, who as the Uxbridge result demonstrates is clearly out of touch with his residents, and the transition to EV.

As someone who is pro the EV transition, who understands that businesses need certainty to plan and that they are already on the way, I think we need to be able to welcome challenges from colleagues. This is probably one of the most transformative transitions the industry and the country—probably even the world—are going to go through, as transformative as the industrial revolution of the 18th and 19th centuries. We owe it to our constituents to ensure that, when the challenges come, we look at them over and over again, whether on EV charging, gigafactories or the cost of EVs themselves.

The transition has to be affordable. My right hon. Friend the Member for Wokingham (John Redwood) talked about putting the consumer at the heart of this, and he is right. We have to appeal to more than the heart; we have to make sure that it makes economic sense for households and hard-working families across Britain. As people who are pro the transition, we must respect the challenge from those who argue against it. We have a responsibility to come up with the answers and to show leadership in that way. The charging park that I referred to is a good example of that, and the investment by Jaguar Land Rover is a great example of its commitment to ensuring that EVs will be the future, something that we will not only use in the UK, but export across the world.

I think the debate on net zero and whether the journey to get there is correct is happening in the wrong terms. I know the Opposition have already spoken about their £28 billion a year net zero package, but I note that it is not yet clear how they will fund that. In reality, the only answer is that either they will borrow, or they will tax hard-working families and businesses until their pips squeak and the industry falls to its knees. It is no wonder that they have aligned themselves with organisations such as Just Stop Oil that want to destroy the automotive sector, kill off jobs and ensure that their brand of socialism is the way forward. We can see that because, of course, the Labour party has taken a £1.5 million donation from organisations such as Just Stop Oil.

I understand why Labour wants to write big cheques, including the £28 billion plan: it is afraid of a market-driven approach, which would unleash our potential and power as a nation. A free market approach means a belief in freedom—the freedom to innovate; the freedom of the consumer to choose the product that they want to buy, driving up quality, which will be absolutely necessary as we get international competitors such as the Chinese; and, of course, freedom from the shackles of socialism. We know that that freedom will be necessary if we are to deliver the transition to net zero.

I welcome the debate. I am optimistic about the opportunities presented by the automotive sector. I will always fight for my constituents in Meriden and Solihull borough to be part of a thriving industry that will compete globally for many decades to come.

High Speed 2

Wera Hobhouse Excerpts

Monday 18th September 2023 Commons Chamber

[Mr Holden]

I thank my right hon. Friend for her question. Spades are already in the ground for HS2, as she well knows, and we are focusing on its delivery. There are already over 350 active construction sites right across the country, including in her constituency. It is going ahead.

[Wera Hobhouse (Bath) (LD)]

HS2 faces death by a thousand cuts. We Liberal Democrats are firmly behind HS2, but the Government’s catastrophic handling of the project’s delivery has meant that the Infrastructure and Projects Authority now rates it as “unachievable”. What will the Government do to fix this mess?

[Mr Holden]

I find it very interesting that the hon. Lady says that the Liberal Democrats are firmly behind HS2, because that is not what their candidate for Mid Bedfordshire said earlier today, or what the hon. Member for Chesham and Amersham (Sarah Green) said just a few months ago.

Rail Ticket Offices

Wera Hobhouse Excerpts

Thursday 6th July 2023 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

The Government have overseen the largest increase in rail fees. My constituents must deal with frequent delays and cancellations, and now people in Bath and across Somerset face losing their ticket offices. Bath is a world heritage site that has a large number of visitors. Foreign visitors, in particular, find getting through apps and ticketing machines bewildering; they depend on the ticket offices. It more important than ever now to attract people on to public transport, so will the Minister explain why my constituents, and the many visitors to Bath who would otherwise come by coach, should feel confident that train journeys will be more reliable, cheaper and more attractive than driving?

[Huw Merriman]

It is because we want to give that better customer experience, so that more passengers are seeing more staff at the stations to help them with information, make them feel more secure and welcome, help them purchase a ticket, and do so in a manner where those passengers are used to transacting across the space. I very much hope the hon. Lady will see a better staff experience as a result and therefore even more people will be attracted on to rail.