Commons Sense

House of Commons · Ministers' Questions

Transport Sector: Support and Covid-19 Emergency Funding

Thursday 22 October 2020 · 9 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 6 Not answered 0

Key points

  • The Government plans to spend between 10.6 billion and 12.6 billion on supporting the transport sector in response to the pandemic.
  • The Department has provided six-monthly updates on the HS2 budget to prevent any surprises.
  • The Government has provided significant support to the aviation sector through various schemes such as the covid corporate financing facility.

Topics (select to filter)

Questions & Answers

Q1 Dave Doogan SNP Angus and Perthshire Glens
Economy Transport
Context

The MP inquired about the financial strain on the transport sector due to the pandemic, especially regarding future funding beyond the current fiscal year.

Question

What (a) financial and (b) other support he plans to provide to the transport sector in the next six months.

Answer from Grant Shapps

The Government continue to provide necessary support to maintain public transport throughout this pandemic. They expect to spend between £10.6 billion and £12.6 billion on supporting the transport sector in response to the pandemic.

Partly answered

Not addressed: Did not specify what kind of support will be provided beyond current measures or provide a detailed timeline for future actions.

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Q2 Steven Bonnar
Economy Brexit Business & Trade
Context

The MP raised concerns about potential financial losses to hauliers and traders due to disruptions at the EU border post-transition period.

Question

If there is, as many predict, a disruptive end to the transition period with long delays and blockages at the EU border and inevitable financial costs this will bring to hauliers and traders, will the UK Government financially support and compensate these businesses and workers for the costs inflicted on them by this Tory Government's failure to secure anything bearing any semblance of a deal with the European Union?

Answer from Grant Shapps

I have just described the between £10 billion and £12.5 billion of support this Government have provided to the transport sector through covid. The hon. Gentleman talks about what will happen at the end of the transition period. I hope he is reassured to know that I am leaving from this House to go straight to Kent to review the many plans that are very advanced and in place to ensure that the transition is smooth.

Not addressed: Did not address whether financial support will be provided for hauliers and traders specifically, instead focusing on existing measures and future planning.

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Q3 Kate Osborne Lab Jarrow and Gateshead East
NHS Transport
Context

The MP highlighted the severe impact of the pandemic on the transport sector in the north-east, seeking assurance of continued financial support.

Question

Covid-19 has resulted in the transport sector being hit hard in the north-east. I hear what the Secretary of State says, but will he commit to providing long-term emergency funding support beyond the end of the financial year to cover the damage caused by restrictions on the economy to prevent major service cuts and job losses in the transport sector in the north-east?

Answer from Grant Shapps

I hope the hon. Lady will accept that an enormous amount of money, as revealed today—between £10.5 billion and £12.5 billion—has been put into the transport sector throughout this crisis, and it has taken many different forms. I will say a bit more about, for example, light rail, which I know will be of interest in parts of the north-east, later. But, yes, we will commit to ensure that our transport sector continues to function, and in particular to ensure that key workers through this difficult period are able to continue to travel and able to serve people in this country, particularly NHS and care workers.

Partly answered

Not addressed: Did not provide a specific commitment for long-term emergency funding beyond the current fiscal year.

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Q4 Hannah Bardell SNP
Transport
Context

The MP sought recognition of unfair treatment faced by a constituent working for British Airways, including forced job loss under pressure to sign an unclear agreement.

Question

A constituent of mine worked as a member of the cabin crew for British Airways out of Edinburgh for over 21 years. They have been forced out of their job and pressured to sign an agreement that has no transparency of the pay breakdown; frankly, they have been totally shafted by BA. Does the Transport Secretary recognise that, on the one hand, there is an urgent need for more financial support for the aviation sector, but on the other, companies such as BA need taking to task, and the fire and rehire Bill of my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) would be the perfect way to do that? Would he also commit to meet my constituent and me, so that he can hear at first hand their horrendous experience?

Answer from Grant Shapps

I know this is a subject that the whole House has been concerned about. The Select Committee on Transport has spent some time looking into this and has made a number of different comments on the matter. It is the case, of course, that these are extraordinarily difficult times for many businesses in this country, but I do not think that any are more impacted than the aviation sector. The most important thing we can do to help the hon. Member and her constituents is to make sure that the sector gets going again, which is why things such as test and release are very important. But I will certainly ensure that a meeting can take place between the aviation Minister—the Under-Secretary of State for Transport, my hon. Friend the Member for Witney (Robert Courts)—and her constituent.

Not addressed: Did not directly address issues related to unfair treatment and lack of transparency in job loss agreements, instead focusing on broader challenges facing the aviation sector.

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Q5 Dave Doogan SNP Angus and Perthshire Glens
Economy Business & Trade
Context

The MP raised concerns about the unique challenges faced by the independent coach sector due to the pandemic, seeking support from the government.

Question

The independent coach sector must be unique in the impact that covid has had on its business and the level of support—in other words, not very much—that it has had from Government. What can this Government do to support private enterprises such as JP Minicoaches in Forfar and Black's of Brechin to weather what has been a disastrous summer followed by a catastrophic winter looming?

Answer from Grant Shapps

About 3,000 coach operators in the country employ 40,000 people in businesses worth about £4.5 billion, and it is true that they have been at the forefront of this crisis. They make a lot of their money from tourism, with the remainder coming from things like school runs. I am pleased that through the return to school, the Department for Education made available £70 million, which has assisted in getting some of those often family-run businesses up and running again.<br/>Until we recover from covid, coach operators will not be able to run at full pelt. They have been able to access some of the ground-breaking additional assistance that the Chancellor has made available, but we will continue to work with the Confederation of Passenger Transport, and other Government Departments, to ensure that coach operators are able to continue as best as possible through these difficult times.

Partly answered

Not addressed: Did not provide a specific plan or commitment for additional support beyond current measures.

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Q6 Huw Merriman Con
Transport
Context

The MP inquired about the establishment of an independent “guiding mind” body to oversee and run the railway system, as envisaged by the Williams review.

Question

When it comes to financial support, the railways have had billions, and I am grateful that they continue to run. The Williams review to reform the railways envisaged a “guiding mind” body that would be at arm's length to the Department for Transport, the train operators and Network Rail, in order to properly oversee and run the railway. There is some concern that that arm's length body may end up as Network Rail, which sounds a little like the days of the old British Rail. Can the Secretary of State assure me that there will be that independent “guiding mind” body to run and oversee both train and track?

Answer from Grant Shapps

I thank my hon. Friend for his work on the Transport Committee, and the close attention that the Committee pays to these subjects. Clearly, the rail network has been going through extraordinary times, with much of the support that I described earlier going to rail. As we move forward, it is important that we do not end up back with the old British Rail, with bad sandwiches and the rest of it, but at the same time we bring a fragmented system back together. That is what the Williams review aims to do, and in some ways covid has enabled us to accelerate that process. I assure my hon. Friend that the outcome will not be some conglomerate with no real “guiding mind” and all the worst from the past, and we will move forward with the Williams reforms.

Partly answered

Not addressed: Did not provide a specific assurance about establishing an independent 'guiding mind' body beyond general assurances of oversight improvement.

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Q7 Gavin Newlands SNP
Economy Business & Trade
Context

The aviation sector has faced significant challenges, including changes to airport shops that could cost Glasgow and Edinburgh airports over £10 million. The Treasury is consulting on abolishing the airside shopping VAT exemption.

Question

Despite failing to deliver promised support for the aviation sector, how does ignoring every response to a Treasury consultation on abolishing the airside shopping VAT exemption, which will cost Glasgow and Edinburgh airports combined £10 million-plus, tally with the Government's claim of listening to and working with the sector? Does the Secretary of State agree that pursuing such policies could cost more jobs in an already beleaguered industry?

Answer from Grant Shapps (Secretary of State for Transport)

The aviation sector has received significant support from the public purse through various schemes such as the covid corporate financing facility. The Treasury has been consulting on changes to airport shops for some time, and I will ensure that concerns are reflected back to it.

Partly answered

Not addressed: Whether pursuing policies like abolishing VAT exemption would cost more jobs in the aviation sector was not directly addressed

How: Under Review

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Q8 Gavin Newlands SNP
Transport Scotland
Context

The High Speed Two (HS2) rail project in England is facing additional costs of £800 million. The question relates to the timing and amount of Barnett consequentials that should flow from this project to support transport in Scotland.

Question

Given news that HS2 needs an additional £800 million, when will the UK Government update the Scottish Government on the timing and amount of Barnett consequentials so these funds can be spent supporting and revitalising transport in Scotland?

Answer from Grant Shapps (Secretary of State for Transport)

The Barnett formula is a matter for the Treasury, but the £800 million is within current budgets. The Department has provided six-monthly updates on the HS2 budget to prevent any surprises. Benefits from HS2 will be felt across the United Kingdom, potentially reducing journey times between London and Edinburgh.

Partly answered

Not addressed: The timing and amount of Barnett consequentials was not specified

How: Not Directly Addressed

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Q9 Matt Rodda Lab Reading Central
Transport
Context

The Government is spending £7 million on a rebranding exercise for the Highways Agency. The question highlights that this money could be better spent protecting lives and saving jobs during the coronavirus crisis.

Question

Our country faces an unprecedented crisis due to the coronavirus, with transport workers risking their safety. Will the Minister explain why the Government is spending £7 million on a rebranding exercise for Highways Agency instead of protecting lives and saving jobs?

Answer from Grant Shapps (Secretary of State for Transport)

We are not.

Not addressed: The reasons behind spending on rebranding were not explained

How: Not Addressed

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