Oral Answers to Questions

James Murray Excerpts

Tuesday 27th January 2026 Commons Chamber

[Alice Macdonald (Norwich North) (Lab/Co-op)]

22. What steps she is taking to providing funding for rail infrastructure.

[The Chief Secretary to the Treasury (James Murray)]

Investment in our railways is a crucial part of our plan to unlock economic growth in every nation and region of the UK. Earlier this month, my right hon. Friend the Chancellor announced our plans for Northern Powerhouse Rail. That transformational programme is backed by up to £45 billion of investment in the long term, which will be key in unlocking economic potential across the north.

[Dave Robertson]

People across Lichfield, Burntwood and the villages are delighted that this Government have funded the midlands rail hub project, meaning a doubling of the number of trains from Lichfield to Birmingham every hour. Ministers could go even further, though, by investigating the reopening of the Derby-Burton-Lichfield line, including a stop in Alrewas for the National Memorial Arboretum. Despite warm words from my predecessor, no business case exists for that. Can the Minister confirm that this Labour Government are not done with investing in transport in the midlands, and will he look again at the Derby-Burton-Lichfield line?

[James Murray]

I thank my hon. Friend for highlighting the value of the midlands rail hub, which we invested in at the spending review. We are determined to invest more in transport in the midlands. Indeed, at the spending review the Government committed to investing £4.4 billion there through transport for city regions funding. My hon. Friend is a great advocate for services that will benefit his constituents, and I will ask the Rail Minister to respond about the specifics of the line that he raises.

[Alice Macdonald]

I welcome the investment the Government have made in rail, including East West Rail, but there are still several projects that would hugely benefit passengers and the local economy in the east. Those include upgrading the Trowse swing bridge near Norwich and, of course, Ely and Haughley junctions. Will the Chief Secretary to the Treasury meet me and other colleagues from the east of England to discuss how we can advance those key infrastructure projects for the region?

[James Murray]

East West Rail is a transformational project that will unlock economic growth and housing. Just yesterday, I was glad to host a representative from East West Rail at an infrastructure roundtable at the Treasury with my right hon. Friend the Secretary of State for Housing, Communities and Local Government. My hon. Friend is another powerful advocate for her local area, and I will happily discuss this matter with the Rail Minister and get back to her.

[John Glen (Salisbury) (Con)]

Last week I met Lawrence Bowman, the chief executive of South Western Railway. I am keen to make sure that all the Government’s changes take positive effect in Salisbury and south Wiltshire, so that tracks, signal and stock can be improved. Will the Minister make sure that there is a suitable reference board along the commuting line into Waterloo, so that when Lawrence Bowman’s business plan is delivered, there will not be any delays when he has to interact with local authorities—a concern that he raised with me last week?

[James Murray]

I thank the right hon. Gentleman for raising the concerns of the services used by his constituents. I can assure him that I will look into those and get back to him.

[Ian Roome (North Devon) (LD)]

The Tarka line in North Devon has seen a massive increase in footfall. However, the line is often closed because of the lack of infrastructure upkeep. Will the Minister meet me to discuss various funding opportunities? It is a rural line that is vital for students to get into Exeter and for people’s job opportunities—I know that the Government are all about job growth.

[James Murray]

The hon. Gentleman is absolutely right: we are all about job growth. I fear I will be quite busy after this set of questions with taking up projects in different constituencies, but that is absolutely right, because we all want to make sure that we have better investment—particularly in transport and infrastructure—for our constituents. I assure him that I will look into the matter and get back in touch with him.

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[Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

T2. The three-year local government funding settlement is a welcome return to long-term planning. Newcastle city council faces a 34% rise in adult social care costs, compared with only a 15% rise in core spending power. That is taking more and more money away from the many services that my constituents depend upon. Will the Chancellor work across Government to consider changes to the adult social care funding formula and/or an increase to the recovery grant so that Newcastle city council can meet the costs of adult social care?

[The Chief Secretary to the Treasury (James Murray)]

As my hon. Friend sets out, there are significant challenges in adult social care, and we have already made available an extra £4.6 billion, including funding to start to implement the fair pay agreement. As she will probably be aware, Baroness Louise Casey is leading an independent commission to build consensus on reform. Its first phase will report this year, with a focus on how to make the most of existing resources.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

T5. While the Chancellor was enjoying her trip to Davos last week, inflation went up, as did unemployment, reversing the progress of the previous Conservative Government. Did the Chancellor or her Cabinet colleagues pick up any ideas in Davos that could reverse those trends, support our businesses and high streets and end the hiring recession that her Budget has caused?

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[Edward Morello (West Dorset) (LD)]

T8. Vast swathes of Bridport, Beaminster, Maiden Newton, Yetminster and Thornford—whole parts of West Dorset—are under water. Dorset and Wiltshire Fire Service is doing an amazing job of rescuing residents who are trapped either at home or in cars, but unfortunately it will suffer a £1.2 million shortfall in the long-term funding settlement because the Treasury’s underlying assumptions are incorrect. Will the Chancellor meet me, so that we can show her why this is a problem for the service?

[James Murray]

Let me start by thanking the emergency services in the hon. Gentleman’s constituency for all their work to ensure that people are kept safe, and to respond to the challenges that people face as a result of flooding. We are determined to support public services across the board, and the decisions taken by my right hon. Friend the Chancellor in past Budgets and in the spending review mean that we have sustainable funding for our public services in all parts of the country.

[Dame Nia Griffith (Llanelli) (Lab)]

T7. I thank my right hon. Friend the Chancellor for bringing us record investment, financial stability and repeated interest rate cuts, but does she share my astonishment that Reform is not only welcoming treacherous Tories who did so much to wreck our economy and public services, but actually entrusting them with economic policy?

[James Murray]

My hon. Friend is absolutely right. The hon. Member for Clacton (Nigel Farage) is warmly welcoming people who spent 14 years undermining public services, who wrecked the economy, who botched Brexit, and who were booted out by the British people in 2024—and Reform’s latest recruit was so bad that she managed to get sacked by Liz Truss.

[Wendy Chamberlain (North East Fife) (LD)]

T9. I heard the Minister’s words to the hon. Member for Shipley (Anna Dixon) about the energy company obligation 4 scheme, but the vague promise in the warm homes plan to put right poor-quality work under ECO4 seems like empty words to my constituents who are affected. Will the Treasury consider the only viable alternative to this disastrous scheme, which is redress?

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

T10. Ben Houchen’s Teesworks saga has seen more than half a billion pounds of taxpayers’ money funnelled into enriching a few business people, while the opportunity for a sovereign wealth fund investment programme has been squandered. What steps are being taken to ensure that there is meaningful investment for economic growth and development in Teesside?

[James Murray]

This Government are backing investment in Teesside to create the good jobs that my hon. Friend’s constituents deserve. I know that Teesside is very well placed to lead for our country across a range of sectors. For example, £4 billion is going into the UK’s first carbon capture, usage and storage cluster in Teesside, including the world’s first at-scale gas power station with CCUS.

[Bobby Dean (Carshalton and Wallington) (LD)]

Ten years ago, this place introduced legislation preventing banks from applying tax deductions after paying compensation for wrongdoing. Now lenders are set to pay out billions of pounds in connection with the motor finance scandal, but they will be able to reduce their tax bills because most of those companies have channelled their money via subsidiaries. Does the Minister agree that that is not in keeping with the spirit of the law, and will the Government do something about it?

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[Rebecca Smith (South West Devon) (Con)]

At the weekend, Storm Ingrid caused the sea wall at Dawlish to collapse in two new places, and we wait to see the damage caused by Storm Chandra today. Both storms are once again exposing the vulnerability of the main rail line to Devon and Cornwall, which is vital for the local economy. Given the reported lack of a Treasury emergency reserve, can the Chancellor guarantee contingency funding for any urgent and unplanned resilience work required and not covered by a fiscal event?

[James Murray]

I thank the hon. Lady for raising the situation in her constituency. All Departments across Government have had their budgets set, and they include a contingency for covering known pressures. One of the ways that we have managed spending settlements differently from the previous Government is that all Departments must recognise that unexpected pressures will come along. They need to prepare for that, and should have robust plans for responding when such things occur.

[Chris Webb (Blackpool South) (Lab)]

Southshore in my constituency has the highest concentration of deprived communities and the most deprived ward in the country. We have developed a local people’s plan for work to regenerate the area. Will my right hon. Friend the Chancellor meet me to discuss this plan, so that we can regenerate the most deprived area in this country?