Department for Transport

Wendy Morton Excerpts

Wednesday 25th June 2025 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

I agree with the hon. Member for Brentford and Isleworth (Ruth Cadbury) on one thing, which is the importance of transport for connecting communities. I then diverge from her a little, because if this Government are serious about unlocking and delivering economic growth, particularly across the west midlands, they would be serious about funding transport.

This Government’s commitment to £10.2 billion for rail enhancement is welcome, but, as ever with the Government, it lacks detail and leaves unanswered questions. Take the example of the midlands rail hub, for which the previous Government not only committed to the initial £123 million, but pledged £1.7 billion to deliver the hub in full under Network North. However, today, through the spending review and responses to my written questions, it has become clear that the hub is funded not to delivery, but only to the next stage. I hope that, in his summing up, the Minister will clarify once and for all whether the new Government are committed to fully funding the delivery of this project. If so, when will it be completed? It is critical to the infrastructure of the west midlands and beyond.

Staying on the topic of trains, I cannot let this debate go without mentioning Aldridge train station. The city region sustainable transport settlements are also covered in these estimates. It was thanks to the hard work of the previous mayor, Andy Street, working with the then Conservative Government that we secured and set out a fully funded CRSTS programme. That included £30 million to deliver Aldridge train station in my constituency. The funding for the delivery of the station was earmarked for 2027, providing rail connectivity for the first time since the 1960s. Sadly, it was the decision of the Transport Secretary, together with the Chancellor, to approve Mayor Parker’s decision to convert the capital funding to revenue. The funding had been ringfenced for our station, but it has now been moved away from Aldridge train station—I suspect that it has been moved to fund the mayor’s vanity bus project.

The 2025 spending review also confirmed £15.6 billion in funding to provide transport for city region settlements for nine mayoral authorities, including £2.4 billion for the west midlands. The mayor could have chosen to get Aldridge station back on track, but no, he has chosen to keep it in the sidings. This is despite the Chief Secretary to the Treasury indicating in this House on 4 June that the mayor had not spent all his money, and even encouraging colleagues to lobby him on how he might wish to spend the rest. Suffice it to say, the Mayor of the West Midlands knows my views and he knows my ask, and I will continue asking.

Let me turn now to bus services, which are key to connectivity and to opportunity, particularly for communities such as mine which find themselves still without a train station. We have seen in the estimates that the national bus fare cap, which was increased from £2.50 to £3 in January 2025, is being extended to March 2027. That is fine, but the Transport Secretary claims that this is a measure to reduce the cost of everyday journeys for working people, yet for those of us in the west midlands, it is yet another hit on top of what we have already seen from the mayor, who has hiked fares and monthly and annual bus passes by more than 8%.

In the debate on the Bus Services (No, 2) Bill earlier this month, I asked the Transport Secretary about how the so-called “socially necessary” services referenced in the Bill would be protected and how they would be defined. She told me that it is down to individual local authorities to define what is socially necessary, but gave no assurances about how they would be supported to continue to provide these vital services. As we saw, £750 million per year announced in the spending review is to maintain and improve bus services. It would be really helpful to understand what allocation from the spending review will go to fund these services in the west midlands.

[Joe Robertson]

My right hon. Friend talks about the Bus Services (No. 2) Bill, which is now in Committee. Does she share my concern that the franchising arrangements that that Bill offers have little attraction for small local authorities such as mine on the Isle of Wight, because if it were minded to go down the route of franchising, it would take all the risk and could end up with a very large shortfall that perhaps metropolitan boroughs can swallow, but certainly smaller local authorities such as mine could not?

[Wendy Morton]

My hon. Friend makes an interesting point on franchising. He is right to highlight the potential impact and the challenge for smaller authorities, but there are also challenges for the bigger authorities. My constituency is part of the West Midlands combined authority, and also part of Walsall metropolitan borough, but I am equally concerned about how this new model that our mayor is pushing will be sustainable. I fear that, in the future, my residents might find either a reduction in services, or increases in cost. For constituencies on the edge of a large combined authority, there is always that feeling that services are sucked into the centre and that we are left out on the periphery.

Transport is vital to people and communities, and it is vital in accessing employment and opportunity. From the Government’s plans, it is quite clear that they have simply used reviews to move money around to their pet projects, and they are not joining up communities—simply another missed opportunity. For as long as my constituents continue to raise with me the question of Aldridge station, I assure you, Madam Deputy Speaker, I will continue to raise it in this place.

--- Later in debate ---

[Wendy Morton]

Although some projects in the Network North plan have been transferred over and continued, Aldridge train station was not one of them. It was funded through the city region sustainable transport settlement, so does my hon. Friend share my disappointment for my communities that it has been scrapped by Mayor Parker in the West Midlands?

[Gareth Bacon]

My right hon. Friend is a doughty champion for her Aldridge constituents. I share her disappointment. It is not the first time I have heard her raise that disappointment in this Chamber in the past few months and—

[Wendy Morton]

It will not be the last.

[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.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Mike Kane)]

It is a pleasure to see you in the Chair, Mr Deputy Speaker. As you cannot speak from the Chair, may I say what a doughty champion you are for the reopening of Manston airport, in your constituency?

First, I thank my hon. Friends the Members for Brentford and Isleworth (Ruth Cadbury) and for Dunstable and Leighton Buzzard (Alex Mayer) for securing the debate and for the work they have done on the Transport Committee. I am grateful for all Members’ important, interested and varied contributions, and will try to address as many as humanly possible—there were an awful lot of questions in many of them. I know that Members are anxious for news on specific schemes in their local areas, but I will not be able to announce any new decisions today. We will make announcements in due course through the usual processes.

Let me address the comments made by the Transport Committee Chair about how spending is linked to the Department’s strategic objectives. Our spending is wholly orientated towards delivering this Government’s missions and our plan for change. At the heart of our approach is harnessing transport to drive growth, as better transport will connect people and opportunities and ensure that businesses can grow and thrive. That is why we are investing in vital public transport services, repairing our road networks, transforming our railways and providing unprecedented investment for local leaders to invest in their priorities. Five out of the first 10 Bills in this Session were on transport—we did not have five transport Bills in 14 years under the last Government. We are moving at pace.

In the financial year 2025-26 alone, we are delivering £1.6 billion for local road maintenance, £1.3 billion for local transport in our big city regions and over £1 billion for bus services. We are also providing more than £420 million for our smaller cities, towns and rural areas, as has been mentioned today. Our investments will help to drive growth in every part of the country and raise living standards for everyone.

We are supporting the transition to net zero and an economy powered by clean energy, with more than £200 million to accelerate the roll-out of electric vehicle charge points this year. We are investing in active travel infrastructure to improve the health of the nation, with an additional £150 million of investment in cycling and walking infrastructure in this financial year alone. We are supporting bus services and capping fares to connect people to jobs and to boost opportunity. We are also supporting safer streets by making public transport safer—including, most importantly, for women and girls. Across our work, we are making sure that every penny of taxpayers’ money is put to good use, from greater efficiency within the Department to getting to grips with the spiralling costs of HS2 and bringing that project back on track.

Although this debate concerns the estimates for 2025-26, I note that only two weeks ago, the Chancellor set out how our ambitions for the transport sector will last the whole of this Parliament. With the settlement we have received for 2026 onwards, we will deliver increased local transport investment in England’s towns and cities, prioritising funding in the north and the midlands and giving local areas more control over how the money is spent. We will improve everyday journeys across this country and invest in the critical national infrastructure needed to connect our cities and our towns in the long term, enabling economic growth. This will ensure that transport plays its part in delivering the plan for change and a decade of national renewal.

I thank the Chair of the Transport Committee for her speech. She asked me a number of questions about when we will publish the outcome delivery plan. This will be done by all Departments, co-ordinated through the Cabinet Office, later this year. She asked about subsidiarity, and what happens if mayors do not use the money and new powers we have given them on the things that we want to do, citing active travel as an example. Even with subsidiarity, mayors have to deliver against Government outcomes and objectives, and we hope to work with them in a spirit of co-operation to ensure that that is done right.

My hon. Friend asked what our bus reform and £1 billion investment was meant to achieve. We introduced the new £3 fare cap on single bus fares in England outside London, which has had the cap for a long time, ensuring that millions of people have access to affordable fares and better opportunities to both go to college and work and to see friends and family.

With UK SHORE, we have moved fast with the decarbonisation plan, and the research and development funding for this will continue. We have worked internationally with the International Maritime Organisation to reduce greenhouse gas emissions across our planet. We have also announced £185 million through safer roads funds to invest in the 99 most risky A roads, and we have made clear commitments on rail cost base and subsidy.

The right hon. Member for Aldridge-Brownhills (Wendy Morton), the former Rail Minister, is a doughty champion for Aldridge station—well done to her for that. The money was reallocated by the current mayor to cover the costs of schemes implemented by the former mayor that did not have the funding. She also talked about buses; I have already mentioned the £1 billion that we have invested in better buses.

My hon. Friend the Member for Bradford East (Imran Hussain), who cannot be in his seat at the moment, is an astonishing champion for Bradford. May I pay tribute to him and to Councillor Susan Hinchcliffe, the leader of Bradford city council, for their work in this area? The £2.1 billion train line and bus station investment is transformative. Some £35 million of Government money will see an additional five daily services to London, and we will be making announcements in the next few weeks regarding Northern Powerhouse Rail and how important it is to connect the cities of Leeds, Bradford, Manchester and Liverpool.

[Wendy Morton]

While the Minister is still talking about rail services, I just want to ask about Aldridge station to be absolutely clear about the situation. When the money for the station was allocated, it was ringfenced. It was his Government who decided to move the money from capital to revenue, so it is simply unfair to blame it all on Andy Street; it is not right.

[Mike Kane]

I thought the former mayor was quite a talented individual and he was succeeded by another talented individual, who has had to make tough choices around funds that were committed but never implemented under the previous Government. Promise after promise was made, but with no delivery whatsoever. None the less, the right hon. Member should carry on campaigning.

The hon. Member for North Norfolk (Steff Aquarone) rightly talked about buses. I have already mentioned the amount of funding that we are putting in there, and the £616 million for active travel, which has been mentioned by a number of Members, on top of the £300 million that was allocated last year. I had a great time last Easter cycling with my wife around the hon. Member’s constituency on Rebellion Way, which is a wonderful piece of Sustrans infrastructure.