Commons Sense

House of Commons · Ministers' Questions

Rail Reform Delays: Cost

Thursday 21 March 2024 · 5 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 3 Partly answered 2 Not answered 0

Key points

  • The National Audit Office reported an expected expenditure of 400 million on rail reform up to March 2024, compared to initial plans of 1.2 billion.
  • The Transport Committee is conducting pre-legislative scrutiny of the draft Rail Reform Bill and aims to complete its report by July.
  • The Department for Transport aims to deliver a station, offices, jobs, and homes at Euston through the largest public sector land deal in London.

Topics (select to filter)

Questions & Answers

Q1 Rupa Huq Lab Ealing Central and Acton
Transport
Context

The National Audit Office report indicated significant delays in rail reform plans, estimating £400 million spent compared to the initial plan of £1.2 billion.

Question

I am concerned about the estimate made for the cost to the public purse due to delays in planned rail reforms. The NAO reported that we expect to spend £400m up to March 2024, compared with plans to spend £1.2bn. What estimates has the government made?

Answer from Huw Merriman

The National Audit Office report was clear that we expect to spend £400 million on rail reform up to the end of March 2024, compared with initial plans to spend £1.2 billion.

Answered
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Q2 Lloyd Russell-Moyle Lab
Transport
Context

The National Union of Rail, Maritime and Transport Workers highlighted that the £1.5 billion savings target will not be met on time.

Question

It has been three years since we were told Great British Railways would happen. The NAO report says £1.5 billion of savings will not be met in time. When will progress be made on GBR and a date for its implementation? Should the railways be renationalised?

Answer from Huw Merriman

The Transport Committee is undertaking pre-legislative scrutiny of the draft Rail Reform Bill. The Government aims to bring in legislation if cross-party support exists, and the committee will complete its report by July.

Partly answered

Not addressed: specific date for implementation

How: Looking At This

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Q3 Rupa Huq Lab Ealing Central and Acton
Transport
Context

High Speed 2 costs have escalated, impacting local access roads such as Old Oak Common Lane.

Question

High Speed 2's escalating costs are compounding local misery. The vital artery of Old Oak Common Lane will close for four to five years. What assurances can be given about funding for the Euston leg to ensure the world-class interchange promised is delivered?

Answer from Huw Merriman

An Old Oak Common terminus provides a great opportunity for regeneration. The spoil will be removed by conveyor, rather than by lorry. At Euston, we aim to deliver a station along with offices, jobs and homes through the largest public sector land deal in London.

Partly answered

Not addressed: funding assurances for HS2 and Euston leg

How: Working On This

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Q4 Stephen Morgan Lab Portsmouth South
Transport
Context

The National Audit Office issued a report indicating the Government's refusal to bring forward rail reforms is costing taxpayers. Avanti West Coast has faced criticism for its poor service.

Question

Earlier this month, the NAO issued a damning report on rail reform delays. Avanti West Coast bragged about getting 'free money' despite delivering poor services. Northern Mayors and council leaders unanimously called for Avanti to lose its contract due to appalling service. Will the Minister strip Avanti of its contract?

Answer from Huw Merriman

No, we will not strip Avanti of its contract as there are issues with the west coast main line that remain regardless of who the operator is.

Answered
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Q5 Gavin Newlands SNP
Transport
Context

Alex Hynes is stepping down from running Scotland's Railway to become director general of rail at the Department for Transport. The NAO report indicated £1.5 billion in lost savings and failed workforce reforms.

Question

Thanking Alex Hynes for his service, I note that the National Audit Office reported rail reform was not on track with missed savings targets and budget cuts announced by the Chancellor. Does the Minister agree that his Government are unable to make savings but willing to make cuts?

Answer from Huw Merriman

No, I do not agree. We are getting on with rail reform by appointing Alex Hynes as director general in the Department for Transport.

Answered
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