Department for Transport

Roger Gale Excerpts

Wednesday 25th June 2025 Commons Chamber

[Noah Law (St Austell and Newquay) (Lab)]

When we talk about national renewal and about building a fairer country, that promise must be visible in places such as Cornwall. I am speaking today not just as the Member of Parliament for St Austell and Newquay and the clay country, but on behalf of a nation and region that has for too long been overlooked when it comes to transport infrastructure. While urban areas receive wave after wave of capital funding, Cornwall—despite its strategic economic potential—has to fight for anything more than basic improvements.

The Mid Cornwall Metro was billed as a flagship rail project for regional regeneration, but this summer we face the real possibility of reduced services, delays in driver training, and a fractured promise to towns such as Newquay that rely on connectivity to survive and thrive. That is not fairness; it is failure. We must move beyond piecemeal, incremental improvements. A “real” Mid Cornwall Metro would link St Austell to Newquay via the western clay country, and is about as shovel-ready as is possible with a major project of that scale in Cornwall. It is backed by rigorous analysis and an albeit outdated feasibility study, and has a cost-benefit ratio of 2.3. It would connect our critical minerals industry with global opportunity, it would help our young people gain access to jobs and training, and it would breathe life into some of the most under-invested communities in the south-west.

We know there are still announcements to come, but Cornwall cannot sit at the back of the queue any longer. Over the period covered by the spending review, the south-west will receive £201 million in local transport grant funding. I think that is about a quadrupling of the present amount, which is extremely welcome, but just £24.4 million of it is allocated to Cornwall. In the same period, the West of England combined authority, despite its similar population, will receive £752 million. We should like to see the same progress on investment in transport as we have seen in so many other areas, such as local government—with its fair funding—and health, given today’s announcement about the Carr-Hill formula. What we need is a Department for Transport that works with us in Cornwall, not around us. We need proper devolved authority over our local rail system to optimise transport integration and to serve forgotten communities such as Foxhole, Nanpean, Treviscoe and St Dennis, where our track turns to trackbed; we need investment that reflects our economic and industrial ambition; and we need decisions that are based on public good, not on postcodes.

The Green Book review, in proposing place-based approaches to investment, sets our Government a clear challenge. Cornwall is ready to step up to that challenge. Much of the shadow of what we now see as our infrastructure was cast in the last industrial revolution, but with the right investment in Cornwall, we can lead in the next.

[Mr Deputy Speaker (Sir Roger Gale)]

I call the Liberal Democrat spokesman.

--- Later in debate ---

[Gareth Bacon]

No, I suspect it will not be the last time I hear it.

There will be occasions when Labour Members fail to read the previous Government’s announcements, so for their benefit let me point out how the funding sums promised to authorities by the previous Government have been closely replicated, in some cases identically replicated, by those promised in this Government’s spending review announcements. For example, for West Yorkshire, £2.115 billion was promised in 2023, and £2.115 billion in 2025; for Greater Manchester, £2.47 billion was promised in 2023, and £2.47 billion in 2025; for the Liverpool city region, £1.58 billion was promised in 2023, and £1.58 billion in 2025; and for West Midlands, £2.65 billion was promised in 2023, and £2.4 billion in 2025. I could go on, but Members will recognise the point. The estimates and the spending review are not new and they are not innovative.

Turning to the substance of the Government’s plans, I want to take this opportunity to examine some of the assumptions underpinning this spending review. I am afraid those assumptions are flawed. The first relates to the supposed benefits of nationalisation. The spending review anticipates that the Department for Transport’s resource departmental expenditure limits, which is its day-to-day revenue spending, will fall by 5% in real terms during the next three years. I do not dispute that it is possible to make savings in the Department for Transport, but I do question the means by which the Government expect to deliver those savings. The spending review claims:

“Resource DEL funding falls in real terms over the period, primarily driven by a declining rail passenger services subsidy as passenger ridership and revenue continue to recover post COVID-19 and efficiencies and savings are made through public ownership.”

This is another entry in the ever-growing list of benefits that Labour claims nationalisation will deliver—lower fares, no strikes, better services and now lower spending.

Let us be clear: this is political daydreaming, not economic reality. The first train operating company to be brought into public ownership by the Government was South Western Railway, and we have already seen unexpected costs with its rolling stock. Credible reports show that mistakes made by the Government will cost the taxpayer an anticipated £250 million more. The Transport Secretary herself has admitted that nationalisation is not a silver bullet. She is right, but the narrative presented in the spending review and these estimates continues to rely on assumptions that remain unproven.

Labour’s ideological plan to nationalise even the best performing rail operators will benefit neither passengers nor taxpayers. Beyond the loss of private sector investment, nationalisation also poses a deep structural risk, because under a single nationalised employer, there will be enormous pressure to harmonise terms and conditions across the entire railway workforce. That may sound harmless or even desirable, but in practice it means the trade unions openly calling for levelling up pay, benefits and working practices to the most generous standards currently found in the system, and they have wasted no time in doing that. I am sure that their members will be delighted by that, but for the Government, the taxpayer and the fare payer, that has one inevitable outcome: rising costs, almost certainly with no corresponding rises in productivity. Far from delivering savings, this sets the stage for spiralling costs, renewed industrial action and even poorer services for passengers.

Turning to the wider economic picture, the Government claim their infrastructure plans are

“creating the conditions for sustainable economic growth in communities throughout the UK.”

However, the truth is that the greatest barrier to growth in this country is not a lack of spending. How could it be when current levels of spending are just about the highest in our entire peacetime history? No, the greatest barrier to growth is the economic mismanagement of the Chancellor of the Exchequer and this Labour Government.

We know that to fund this increased spending, Labour has not got control of the welfare bill, or reduced the size of the state, but simply changed the fiscal rules to allow billions more in borrowing. More borrowing is certainly not the long-term answer—this is not free money. Britain already spends almost £106 billion a year just to service its debt. For context, those payments outweigh what we spend to protect our country not just from foreign threats, but from crime at home, because our debt-servicing payments exceed the combined amounts allocated in the spending review to the Ministry of Defence, the Home Office and the Ministry of Justice. That is not just unsustainable, but irresponsible.

Higher spending and higher borrowing fuels inflation. It undermines growth and it blows a hole in the public finances. Of course, we all know how Labour plans to fill that hole—with higher taxes. Will the Transport Secretary urge the Chancellor to restore discipline to the public finances? I hope she does. Will she set a credible strategy to deliver efficiencies within the Department for Transport? I hope she does, so that come autumn we are not hit with yet another round of tax hikes.

I thank hon. Members for their contributions to this estimates debate, exploring their priorities for Government spending, including those Members who presented a vision with which I might disagree. We must acknowledge that the Government continue to offer more questions than solutions. In transport, we are presented with legislation to change bus policy without the funding that we know will be required to implement it properly. We await pipeline plans, railway reform papers and road investment strategies. When I was appointed shadow Secretary of State, I was initially faced by the former Transport Secretary, the right hon. Member for Sheffield Heeley (Louise Haigh), who constantly declared that she wanted

“to move fast and fix things.”—[Official Report, 10 October 2024; Vol. 754, c. 446.]

But nearly a year into this Government, it feels as though things are moving at the speed of a canal boat in reverse—very slowly and taking the country backwards.

The problem is not the current Transport Secretary, or the Under-Secretary of State for Transport, the hon. Member for Wythenshawe and Sale East (Mike Kane), who is responding to the debate today. The problem emanates from No. 10 and No. 11 Downing Street, because when the captain and the first officer of the ship have no ideas of their own, refuse to scan the horizon and see it for what it is, rather than what they would wish it to be, the journey ends up lost and directionless. For the good of the country, I hope that the Government will come to understand that real change means supporting British business and backing the everyday commuter. In the meantime, I fear these estimates are indicative of a Government who are not listening, failing to heed the warnings and will continue steering the ship of state straight towards the iceberg.

[Mr Deputy Speaker (Sir Roger Gale)]

I call the Minister.

--- Later in debate ---

[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.

[Mr Deputy Speaker (Sir Roger Gale)]

I call Ruth Cadbury to wind up.