Railways Bill (Second sitting) Debate

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Department: Department for Transport

Railways Bill (Second sitting)

Sarah Smith Excerpts
Tuesday 20th January 2026

(1 day, 8 hours ago)

Public Bill Committees
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None Portrait The Chair
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I am afraid that the next question will probably be the last to this set of witnesses. I call Sarah Smith.

Sarah Smith Portrait Sarah Smith (Hyndburn) (Lab)
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Q In my constituency, we have a potential site for a rail freight terminal, and I welcome the commitment to rail freight growth in the Bill. As I understand it, GB Railfreight has invested in 30 new locomotives so far, and has raised more than £218 million of debt available for capital investment. Do you not agree that that demonstrates industry confidence, and that those steps, plus the other things happening in the industry at this stage, suggests that the industry is not unnerved by the progress being made by the Government and what is currently outlined in the Bill?

Maggie Simpson: The industry is unnerved by the provisions in the Bill—I have members writing letters across Government to set out their concerns—but business goes on. Keith Williams picked up his biro in 2018; you could have raised a child in the time since then, so of course business has to go on. People are making good investments and, as I said at the beginning of the panel, we are pleased with the support of this Government. What we are looking at in the Bill is whether we have a framework that will enable those investments to happen in five, 10 or 15 years’ time, under a different Administration with, potentially, a different mindset, which might be better or worse—we do not know.

That question has different layers. Are we unnerved now? Yes. Is that stopping investment now? Not everywhere, but possibly in some places; other factors are at play too, of course. Will it start to impact investment? Yes, it will. The first time that GBR says to somebody, “Take your freight train off my network because I want to run this service instead”, if we have no or very limited right to appeal, it will absolutely start to spook the market.

Steve Montgomery: I know your question was about freight, but private sector investment, particularly in passenger rolling stock, is an area you have to look at and ask, “Where’s that coming from?”. We have committed to spend £500 million between buying new trains and maintaining them, and that keeps the supply chain going.

We have potential future orders that we want to place, but we are again getting caught up in the mechanics of whether there will be open access, or whether we will lose our rights at any point under clause 71. All those different things are in play at this moment of time, so where do you get that confidence? The Bill is not strong enough in that area, particularly not for passenger service operators.

Sarah Smith Portrait Sarah Smith
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Q I have a very short question about a slightly different area. John, I understand that you have worked across Europe and looked at different approaches across the world. In Finland, as I understand it, they have gone all out on family-friendly trains and ensuring inclusive access to trains in the widest possible sense. Is there anything we can learn from that part of the world on how we can meet the ambitions for accessible services laid out in the legislation?

John Thomas: I am fairly new to the role. We are a Brussels-based organisation and we do have lots of European members. I am not familiar with the Finland example, but the European Union is going in completely the opposite direction from us. They are continuing to liberalise, opening up their markets—in the United States, in Australia, in South America—

None Portrait The Chair
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Order. That brings us to the end of the allocated time for the Committee to ask questions, I am afraid. On behalf of the Committee, I thank witnesses for the evidence they have given this afternoon.

Examination of Witnesses

John Davies and Catriona Meehan gave evidence.

--- Later in debate ---
Rebecca Smith Portrait Rebecca Smith
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Or at least make them jointly. Is that what you are after—that joint decision making?

Andy Burnham: Yes, I think that would be what we would want. The risk would be that GBR is too remote and not responsive—everything that Lloyd was saying about slow decision making. That is not what we would want. From our point of view, we would want a Bee Network business unit within GBR, with joint decision making and a very place-based focus. That would be meaningful.

Sarah Smith Portrait Sarah Smith
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Q In Hyndburn, we are less than 40 minutes from Manchester, but very proudly in Lancashire, obviously—

Andy Burnham: We have no plans to annex you yet, but I will let you know if that changes!

Sarah Smith Portrait Sarah Smith
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The Reform county council is trying to delay our progression towards a mayor, which is deeply frustrating because of all of the things you have outlined, and much broader things as well, about the benefits of devolution. What benefits might Hyndburn get, without being part of a mayoral authority, as the Bill currently stands? What more might we be able to do to benefit areas that are dependent on that progress before they can be talking in the way that you are today, Tracy and Andy?

Andy Burnham: Obviously, from Hyndburn, people will travel to Manchester, but also to Liverpool, Preston and other places. Once you see the emergence of more integrated systems in which Hyndburn is included, travel will become more convenient and cheaper. In effect, there will come a point where your constituents, Sarah, will be able to tap into the Bee Network cap and come into Manchester and then use our trams and buses at a much lower cost than might otherwise have been the case. I think that is the way to think about it: as this spreads out, in the end, it will make travel more convenient and more affordable for people everywhere. It is really just within the city region boundaries at the moment, but it will grow beyond that, and I believe that your constituents will feel the benefit in three to five years, possibly, but maybe not as immediately as others.

Jason Prince: We also have to remember that the reason we are here now is that the railway system did not work. What GBR will do, through the legislation that the Government have brought forward, is bring a much stronger focus. We will have a structure and a body that, almost as a minimum, seeks to deliver a good passenger journey and good access, whether that is for freight or whatever.

We are starting from a stronger base and probably with greater clarity, but we have to acknowledge that different areas, such as Greater Manchester and West Yorkshire, have been given powers and funding, and with that comes greater responsibility. They are all prepared to take that on and, conversely, with that they should have greater strengthening and probably deeper partnerships. I think that needs to be written into the Bill, to better define it. There are 20,000 words in the Bill, and the addition of probably only 500—about 2% of the overall text of the Bill—would make that relationship much stronger. I know that is quite geeky and very technical, but that is broadly where I think we need to land in terms of strengthening. GBR will set a framework that we have not had before, which should benefit every part of the country. I think that is what the Bill will do.

None Portrait The Chair
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Order. That brings us to the end of the time allocated for the Committee to ask questions of these witnesses. On behalf of the Committee, I thank you for giving evidence this afternoon. I am sorry to colleagues who were unable to ask questions.

Examination of Witness

Richard Bowker gave evidence.