Department for Transport

Paul Kohler Excerpts

Wednesday 25th June 2025 Commons Chamber

[Mr Paul Kohler (Wimbledon) (LD)]

As we all know, strong connectivity is vital to economic growth and social prosperity. It is not just about convenience; it is key to boosting productivity, attracting regional investment and raising living standards. Central to that is making public transport more available, affordable and accessible.

The transport crisis in this country is clear. Since 2015 the number of local bus journeys has dropped by more than 1 billion—a quarter of all trips—with many routes cut and fares up by more than 50% since 2013. Rail use remains below pre-pandemic levels, while Government rail subsidies have surged to over £22 billion, 65% higher than they were before the pandemic, despite repeated above-inflation fare increases. So what is the plan? The estimates offer us some hope, but the picture is mixed.

Let me begin with the positive aspects. The 4.4% rise in capital spending is welcome, especially the boost for Transport for London and High Speed 2, which shows much-needed recognition of the transport network’s capital needs. The continued support for East West Rail and the trans-Pennine route upgrade is also welcome, as they are vital to connecting communities and driving growth—exactly the kind of strategic investment we need.

Sadly, although the Conservative Government claimed to back motorists, they did the opposite, and fewer than half our roads are now in good condition. The new road funding settlement is good news therefore, but it clearly falls short of what is needed. The support for devolution is also encouraging. Local leaders are best placed to deliver for their areas, and increased autonomy for transport in city regions is positive, even if not all the new money is in fact new. However, areas outside combined authorities must not be overlooked.

Of the negatives, the most concerning is the £150 million cut to day-to-day spending this year and over the spending review period, which will affect subsidies for trains and buses. The reductions threaten already fragile services and the efforts to promote walking and cycling, and raise serious doubts about the Department’s ability to achieve its stated priorities.

There is a clear mismatch between the Government’s ambitious transport goals and their budget priorities. An £81 million rise in central administration costs, largely to cover the higher employer national insurance contributions that the Government introduced, raises questions about whether resources are being prioritised towards administrative overheads, rather than directly supporting frontline transport improvements.

Despite pledges to address climate change, the budget lacks detail on funding for green infrastructure, public transport decarbonisation and active travel, leaving the DFT open to accusations of setting green ambitions without a clear financial or operational pathway—greenwashing, effectively.

The £50 million in costs tied to the closure of phase 2 of the HS2 programme further reflects issues with long-term strategic planning. Not only does the expenditure represent sunk costs, with no return on investment; it casts doubt on the Department’s ability to deliver the major infrastructure projects that are so vital for national connectivity and economic growth.

The Liberal Democrats propose simplifying ticketing, improving accessibility and boosting connectivity, and also increasing usage and income by freezing fares. We also advocate a 10-year rail electrification plan—investing in zero carbon by ensuring that all new lines are fully electrified.

Buses, the nation’s most popular form of transport, get little support from the estimates. The franchising reforms in the Bus Services (No. 2) Bill are welcome, but they will not restore regular, affordable services without funding and expertise. We need more than just three people in the bus centre of excellence. Years of neglect following Tory deregulation have destroyed much of our national bus network, isolating communities and holding back growth. Clearly, the Chancellor’s hike of the fare cap from £2 to £3 should be reversed, as it is causing real hardship for some of the poorest in society, yet the estimates reveal continued cuts to bus subsidies, which is precisely the wrong approach when communities desperately need reliable, affordable bus services.

The Liberal Democrats believe that active travel infrastructure must accompany public transport reform, but the Government’s approach is disappointing. Although £246 million is currently allocated to Active Travel England, funding is set to be cut by more than £90 million next year, undermining Labour’s earlier promises of unprecedented investment. The Liberal Democrats propose a different path: a nationwide active travel strategy to build new cycling and walking networks that are better integrated with existing transport. This cost-effective, ecofriendly approach would connect homes, schools, high streets and transport hubs.

These estimates show a Department and a Government who lack ambition. While increasing capital spending and investing for the future are positive, cutting day-to-day spending is a poor decision from a Government who say economic growth is their highest priority. We need a transport system that works not just for the next decade, but for the next bus, the next train, the next school run and the next hospital visit. This means funding day-to-day services properly, empowering local authorities and putting passengers at the heart of every decision, for which the Liberal Democrats will continue to fight.

--- Later in debate ---

[Mike Kane]

We are giving back control of buses to local authorities—as difficult as it is in some circumstances. It is a £1 billion commitment. People in rural economies need to get about just as much as people in cities and we are committed to making sure that that happens.

Let me turn to my hon. Friend the Member for Monmouthshire (Catherine Fookes). I cannot wait to visit and to ride on the No. 65 bus. She is a doughty campaigner for her constituency. She also talked about two Labour Governments working hand in hand to bring rail investment to Magor and Undy station, and I am glad that she has had correspondence with the Roads Minister on the safety of the M48.

The hon. Member for Didcot and Wantage (Olly Glover) rightly talked about HS2. He highlighted the need to connect our maritime industries on the south coast with the rail network, so that we can take maximum advantage of both maritime and rail to get that freight off our roads.

My hon. Friend the Member for Dartford (Jim Dickson) summed it up when he spoke about the collapse of Galley Hill Road, which I thought was a metaphor for transport under the last Government. We have committed to the Lower Thames Crossing, with an initial investment of £590 million, and we will be making announcements on that in due course. We have also put in £54 million to fix potholes in Kent. The Government are showing that we are committing to the Lower Thames Crossing, with announcements to come, and are fixing the roads, and yet not one Reform Member came to this debate. Let us remind the people of Kent day in, day out about Reform’s lack of commitment to improving their lives compared with what we are doing.

I was with the predecessor of the hon. Member for Surrey Heath (Dr Pinkerton) at the British Ports Association. Do they only elect Scottish Members to the Surrey Heath constituency? I noticed that even some of the mannerisms were the same. The hon. Member made some important points about evidence-based transport systems. I think we are demonstrating that we are not a cultural, woke Government but are looking policy data to drive our decisions about how we best connect this country up. He also talked about road safety. Our manifesto included a commitment to long-term connectivity for transport across the country. That will be coming, so I hope he gets involved in the debate when it comes forward.

The hon. Member for Didcot and Wantage talked about HS2. We have accepted James Stewart’s recommendations about the cost overruns, although the hon. Member was right to highlight them. He also asked about how our railways and maritime industry can work together. Green shipping corridors will be key to the future of shipping, but the grid capacity in our coastal communities is not up to scratch. He knows that and we know that, and that is why we made manifesto commitments on our grid capacity. I note that we have already made announcements about greater European train connectivity, but I understand the point he makes about depot constraints; the Government are looking at that as well.

My hon. Friend the Member for St Austell and Newquay (Noah Law) is a real champion for Cornwall. I was glad that we could announce £4.1 million for Cornwall alone in 2025-26 in addition to the £201 million —which, as he mentions, is four times greater than the last settlement. We hope to see things improve in that wonderful part of the country.

The hon. Member for Wimbledon (Mr Kohler) always astonishes me. He is like some latter-day Hilaire Belloc in his pinstriped suits and polka-dot tie. He was so positive about the Government that I thought he was going to cross the Floor for a second; we will give him time. He mentioned being disappointed about some areas, but we have done more to decarbonise transport this year, more for buses than any Government have done for a generation, and more for active travel in one year than any Government for a generation.

[Mr Kohler]

I thank the Minister for his compliments. Does he accept that Active Travel England will get £100 million less next year, and does he think that is a sensible way to move forward?

[Mike Kane]

Under this Government, Active Travel England gets settlements that go forward. I have to say that I thought the former Member for Uxbridge and South Ruislip—the former Prime Minister—was actually very good in this space, but the announcements he made were then all pared back. Local authorities need to have long-term continuing investment to connect routes and get people walking, wheeling and cycling. My constituents die of type 2 diabetes, hypertension and chronic obstructive pulmonary disease—all things that can be fixed by more of us walking, wheeling and cycling. Active travel is key to the Government’s health mission as well as to our transport mission.



I thank the shadow Minister, the hon. Member for Orpington (Gareth Bacon), for his contribution. He mentioned that the settlements for West Yorkshire, Greater Manchester, Merseyside and the west midlands were similar to those from 2023. Yes, they are, but this Government are delivering on these settlements. We had so many promises from the last Administration, but we are delivering.

We will take no lessons from the Opposition on the costs of Great British Rail, which I think the nation is proud of, given that we were left to clear up the debacle of the overrun costs of HS2—a project that was cut by the previous Prime Minister while he was at the Tory party conference in Manchester. It was the most astonishing decision, and the most astonishing place to announce it. As a proud trade union member, I am glad that the trade unions have come to the table this past year. After years of industrial strife, we are solving the disputes, particularly in the railway industry, and services are beginning to improve.

On long-term investment, I gently remind the shadow Minister that he voted for Prime Minister Liz Truss’s Budget, which left us with a £22 billion black hole. We have been tackling that as well as setting out our ambition for the future. We are fixing the foundations of our transport system to deliver the Government’s priorities. Our funding settlement for 2025-26 enables us to press ahead with reforming our bus and rail services, to get to grips with the maintenance backlog, to empower local leaders to deliver, and to build transformative new routes for the country. The settlement announced earlier this month will build on that; it will drive progress on the Government’s missions, and improve transport for people and businesses across the country.

I thank hon. Members for contributing to the debate. I am grateful for the important work of the Transport Committee, and look forward to continuing to work with it. I commend the estimates to the House.