Department for Transport

David Chadwick Excerpts

Wednesday 25th June 2025 Commons Chamber

[Olly Glover (Didcot and Wantage) (LD)]

I praise and thank the hon. Member for Brentford and Isleworth (Ruth Cadbury) for her wide-ranging opening speech to this important debate. I also thank the Backbench Business Committee for giving time for it.

There is much to welcome in the spending review announcements for transport, particularly the capital investment in many parts of the country, but it is going to be important to hold the course and be consistent in the support for such schemes. For example, proposals for a West Yorkshire tram have been in and out so many times that people living in that region have understandably lost count. Hopefully, this time it really will happen.

Beneath the positive headlines about capital spending, and hidden a little in the footnotes, is a 5% cut to operational expenditure during the spending review period. Looking at the detail, there are some somewhat optimistic assumptions that form the basis of how that will be borne. For example, in section 1.7 of the DFT memorandum for the main estimate 2025-2026, it is clear that the assumption as to how some of those savings will be made is through ongoing recovery of passenger revenues since the pandemic, as well as planned cost efficiencies from rail reform. It states,

“Should revenue growth be lower or implementation of rail reform be slower than anticipated then that could result in spending pressures.”

Although Great British Railways certainly has the potential to improve things, I think all concerned would accept that on its own, it will not solve all our problems.

Given that our transport system is not going anywhere —we are not going to see closures of railways or large cuts—I think it is time that we collectively stop viewing it as a burden and spend intelligently to make the most of the assets and the costs that come with them. By spending a little bit more or approaching things a little radically, we can make far more of those sunk costs that go into our transport system and will continue regardless.

It is important to recognise the suggestions at the moment that funding for the existing network may well be constrained by the expensive disaster that the implementation of HS2 has become. We do need high-speed rail in this country, but the costs are simply unbelievable. However, I suggest to the Government that it would be as wrong to punish the conventional network for HS2’s failings as it would be to deprive local roads of investment because of an over-budget motorway project.

Here are a few friendly suggestions to the Minister and his colleagues for how that 5% operating expense gap could be plugged by growing revenue. When it comes to taking the railway to the next level, there are some things that cost very little, if anything, that could be done. I personally find on-train ticket checks to be inconsistent. Where guards are present, they really should be present on the train, ensuring that we maximise revenue gathering from ticket sales. Full electrification of our busiest and fastest inter-city and freight routes would lead to higher train reliability, better acceleration and therefore more capacity, making the most of what we already have. It is not just me who thinks that a rolling programme of electrification would reduce costs; chief executive of Network Rail Andrew Haines recently said in front of the Transport Committee that it is “incontrovertible” that it would do so.

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

Does my hon. Friend agree that the electrification of railway lines boosts capacity and enables them to ship more freight across our great nation?