The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)
I am grateful to the hon. Member for Ely and East Cambridgeshire (Charlotte Cane) for securing this important debate on the Ely area capacity enhancement programme—EACE. I want to recognise her tireless advocacy on behalf of her constituents, rail passengers and freight operators across the region on a matter that affects many rail users, in one way or another.
As the hon. Lady said, the Ely area plays an essential role in our national rail network. It is a gateway for freight from the port of Felixstowe—one of Britain’s largest container ports—and is a key connector for communities across East Anglia and beyond. The hon. Member is absolutely right to highlight the constraints at Ely, which limit passenger capacity and hold back the full potential for rail freight growth in the east. Indeed, East Anglia is one of the fastest-growing parts of the country and this Government are extremely ambitious for the future prosperity of the region. Rail will continue to play a vital role in supporting new housing, unlocking jobs and strengthening sustainable freight links. The hon. Lady rightly highlighted the potential environmental benefits of moving freight from road to rail and, indeed, the safety benefits.
Sam Carling (North West Cambridgeshire) (Lab)
I thank the hon. Member for Ely and East Cambridgeshire (Charlotte Cane) for securing this debate. As she said, there is a lot of support for this scheme across the political spectrum, and it has been on the books for a very long time—as a good indication, the number of years she just mentioned is longer than I have been alive. Can the Minister confirm that the Government recognise the huge growth that the scheme could unlock not only in my region of Cambridgeshire, but more broadly across the country, and that we therefore want to bring it forward as soon as the financial situation will allow?
Lilian Greenwood
My hon. Friend is a great champion for growth in his constituency and his region. I can assure him that this scheme is in the pipeline of future rail enhancements and will be reconsidered as further funding becomes available.
Steve Barclay
The Minister seems to be citing a lack of funding as the reason for the scheme not being funded, but when I spoke to the Rail Minister in his previous role as chair of Network Rail, it was a priority for Network Rail. Can the Minister confirm from the Dispatch Box that schemes with a worse benefit-cost ratio were funded in the spending review? In other words, did the Government choose to fund transport schemes with a lower BCR over funding the Ely junction?
Lilian Greenwood
As I am sure the right hon. Gentleman knows, there are a number of considerations that go into making decisions about which schemes go forward.
Lilian Greenwood
The BCR is, of course, one of the things that is considered, but wider strategic issues are always brought to bear. It is just one of the tests that is considered. I would not for a moment suggest that this scheme does not have a good BCR.
Improvements to East Anglia’s rail network will benefit not only local passengers, but communities and businesses across the midlands and the north. I commend the collaboration shown by local partners, councils, industry and residents who have come together to present a united voice behind the scheme.
However, it is important that we address the funding position directly. On 8 July, the Secretary of State updated Parliament on which road and rail infrastructure schemes will progress following the spending review; as the hon. Member for Ely and East Cambridgeshire is aware, the EACE programme has unfortunately not been allocated funding at this stage.
As the hon. Lady rightly noted, the previous Government committed to a range of major schemes in their October 2023 Network North announcement, knowing full well, with a general election on the horizon, that there was no funding to deliver them. That, unfortunately, included the Ely area capacity enhancement. I recognise and share the frustration that has caused locally, and this Government are determined to ensure transparency regarding the future of this programme. We are committed to delivering infrastructure with the greatest benefit to passengers, freight and the wider economy as quickly as possible and within a fully funded and deliverable programme.
I appreciate that it is disappointing for the hon. Lady and the many supporters of this scheme, but it is not the end of the story—I want to be absolutely clear on that point. We fully recognise the strategic importance of the Ely area capacity enhancement programme, which is why, as I said in response to my hon. Friend the Member for North West Cambridgeshire (Sam Carling), we remain committed to supporting its place in the pipeline of future rail enhancements, and the programme will be kept under active review and considered carefully as further funding becomes available.
As the hon. Member for Ely and East Cambridgeshire pointed out, the scheme has a strong business case. Indeed, EACE would increase freight capacity from 36 to 42 daily trains to and from the port of Felixstowe, which would deliver huge benefits including supporting the economy, cutting emissions, reducing HGV congestion on roads like the A14 and strengthening our supply chains; the passenger benefits would also be substantial, delivering more reliable journeys and supporting growth across the region from Norwich and Ipswich to Cambridge and beyond.
I want to recognise, as the hon. Lady set out, the powerful and united voice of local and regional stakeholders, including Transport East, England’s Economic Heartland, local authorities, ports and freight operators, and indeed MPs from across the political spectrum. My hon. Friend the Member for Cambridge (Daniel Zeichner) brings great knowledge and experience to this debate. The hon. Member for Ely and East Cambridgeshire herself has been vocal in championing this investment, and of course that local support strengthens the case for future funding.
The Rail Minister recently met the Mayor of Cambridgeshire and Peterborough to discuss how the Ely programme could support housing and economic development in the east of England, and the potential for raising third-party funding to support the scheme. Given the strong local support for the scheme, and the real development and growth opportunities it could unlock across the region, it is important that all sources of funding are fully explored. But I am sure the hon. Member for Ely and East Cambridgeshire will recognise that any private finance or alternative funding proposals would need to demonstrate value for money to the public sector.
As the hon. Lady may know, 44 level crossings would need to be upgraded or closed to deliver the increased capacity envisioned by EACE. I note that it has been suggested in the media that the cost of upgrading Ely North junction has ballooned from £25 million in 2012 to almost £500 million, but let me be clear that that is not the case. As one of my officials put it, this is like comparing apples with deck chairs, as the Ely area capacity enhancement scheme comprises a much wider series of interventions, including upgrades to bridges, signalling and Ely station itself, as well as additional track and the upgrading and closure of level crossings, alongside the Ely North upgrades that were announced in 2012.
That is likely to be one of the most challenging and costly aspects of the scheme, particularly the planning consent, and securing local agreement to ease the delivery of these works on level crossings could radically reduce the cost of the scheme. The Rail Minister has asked the mayor to work with local highways authorities to explore how the required works around level crossings could be simplified or rationalised.
As we have observed, the investment case for EACE is strong. However, no development work has taken place on the scheme since it was closed by the previous Government in 2022. Upgrading the business case, including revised cost estimates, demand forecasts and benefits assessments, would be a positive first step in bringing the programme forward.
The Rail Minister has recently written to the mayor suggesting that he meets the chief executive of Network Rail to discuss how the EACE programme’s business case could be updated, and the mayor’s office would be well placed to co-ordinate other stakeholder engagement with Network Rail on that update. To that end, I encourage the hon. Member for Ely and East Cambridgeshire and other hon. Members to continue engaging with the mayor. It would also be important to time any business case updates to align with the potential release of funding at future spending reviews.
While we consider how best to progress EACE, I reassure the hon. Lady that Cambridgeshire is already benefiting from significant rail investment. The new Cambridge South station is forecast to open in June 2026, improving access to new housing and one of the most important life sciences campuses in the world. The Government have also reaffirmed their commitment to East West Rail serving Cambridge and allocated £2.5 billion of funding for the next stages of the project at the last spending review.
Investment in East West Rail demonstrates Government support for enhanced connectivity across the Oxford-Cambridge corridor, and that project can enable up to 100,000 new homes and is expected to boost the regional economy by £6.7 billion a year by 2050.
Charlotte Cane
It is wonderful that East West Rail is coming, but my constituents need to be able to get to it in Cambridge, which is why we need the upgrade at Ely junction.
Lilian Greenwood
The hon. Lady has made a compelling case for Ely junction and the wider Ely area capacity enhancement scheme. It is about ensuring that it is affordable and deliverable, which is precisely why we are keeping it in the pipeline for when further funding is available. We inherited terrible economic pressures and, in the Department for Transport, billions of pounds of schemes that were simply unfunded, which I am afraid is the position with the Ely area capacity enhancement scheme.
Let me finish by thanking the hon. Member again for securing this debate and for the passion with which she continues to champion the Ely area capacity enhancement scheme. I understand the disappointment that she and other stakeholders have expressed following the spending review earlier this year, but I hope that I have reassured her that the Government recognise EACE as a key strategic enhancement, that we see clear value in its future delivery, and that we will continue to work constructively with regional partners as we consider how and when best to take the programme forward.
The case that the hon. Member and others have articulated this evening and on many other occasions will remain central to ensuring that when future funding becomes available, the scheme will be well placed to progress. I look forward to continuing that dialogue and to unlocking the full potential of rail passengers and freight in the Ely area, and indeed wider Cambridgeshire, in the years ahead. My noble Friend the Rail Minister has notified me that he will be happy to meet her to discuss this further.
Question put and agreed to.