PARLIAMENTARY DEBATE
Rail Performance - 11 November 2024 (Commons/Commons Chamber)

With permission, Mr Speaker, I shall make a statement about rail performance. I welcome the shadow Secretary of State for Transport, the hon. Member for Orpington (Gareth Bacon), to his place. I am sure the Opposition will be interested in what we have to update the House about this afternoon.

After 14 years of neglect, our inheritance was a railway that was failing its passengers, with cancellations at a 10-year high and punctuality that is consistently inconsistent across the network. Back in 2015, cancellations represented around 2% of all services, but thanks to our inheritance of extraordinary failure, that doubled to 4% when the last Government left office. The situation is holding back our economy, stifling our businesses and making life miserable for passengers. That is why, as part of this Government’s public service reform agenda, we are pushing ahead with the biggest overhaul of our railways in more than 30 years. I am grateful to you, Mr Speaker, for this opportunity to update the House on the progress we are making.

As Members will be aware, the Passenger Railway Services (Public Ownership) Bill is making its way through the other place. It will allow the Government to give three months’ notice to the first private train operating company to be taken into public ownership, which we will announce as soon as Royal Assent has been achieved. No one has ever pretended that public ownership alone is a silver bullet. The people impacted by delays and cancellations, who can no longer rely on the train to get where they need to, do not care who owns the trains—they care whether they are working or not. Under the model we inherited, no one could argue that they were working, so we will soon launch our consultation setting out plans for unification across the railway.

As part of that, Great British Railways, as the single directing mind, will plan services on a whole-system basis, to better deliver for passengers and freight customers, unlock growth and provide the services a modern, efficient railway should. That will lay the groundwork for the introduction of the railways Bill, later this Session, which will establish Great British Railways and end the fragmentation that has hampered our railways for over 30 years of privatisation.

But we do not want to wait for legislation. The Government are already making improvements and taking steps to deliver reform across the railways. I have appointed Laura Shoaf as chair of shadow Great British Railways, bringing together Network Rail, the publicly owned train operating companies and my Department to drive better integration now. Working with operators already in public ownership, we are seeking to drive savings by eliminating duplication and deliver the improvements that passengers want, such as allowing tickets to be accepted across those TOCs in public ownership during disruption.

Shadow GBR gives us the tools to assess the structure of the timetable, question resource plans and review performance measures and targets. We are using those tools to unlock the punctuality and reliability that passengers deserve across the country. For example, Southeastern is now performing much better. Its cancellations are low, with its punctuality ranking among the top five operators contracted to my Department, and that level of service will increase by 44 additional trains per day when the timetable is updated in December. That is what shadow Great British Railways is delivering now.

We are demonstrating what integration between track and train can deliver for passengers. Take those who rely on Euston station, for example. Indecision on HS2 left passengers with fewer platforms and greater overcrowding, victims of the so-called “Euston dash”. Convening Network Rail and train operators at Euston in the interest of passengers is an excellent example of the benefits that our reform agenda can achieve. Euston now not only has an integrated station management team, but a 100-day plan of rapid improvements that puts the interests of passengers first and individual organisations second. Platform announcements are made earlier, crowding has been reduced and, yes, the advertising screen has been temporarily switched off.

Delays and cancellations were not the only inheritance. For two years, strike followed strike, and disruption followed disruption, in the longest industrial dispute on our railways. I have made it my priority to get around the table, reversing the previous Government’s antagonistic approach by resetting industrial relations and settling the pay disputes that saw the country grinding to a halt. I am working with the sector to speed up training and accelerate the driver recruitment pipeline, which will reduce the railway’s reliance on rest day working agreements and lower the burden on taxpayers. Settling this saga allows us to move forward with long-overdue negotiations on workforce reform, bringing our railways into the 21st century. That is what moving fast and fixing things looks like.

We are putting passengers first and, today, I can inform the House that since the resolution of the LNER driver dispute, we have seen green shoots emerging, with the number of LNER cancellations falling. Not only have cancellations due to a lack of driver resource dropped to near zero as a direct consequence of getting around the table with unions, but revenue is £15 million higher for the recent rail periods this year versus the same periods last year. Overall cancellations are down from 7% to 5%, and LNER has run 100 more train services in the last four weeks than in the comparable period last year.

Elsewhere, passengers will see a tangible impact on reliability on Northern Rail trains. Thanks to our agreement on rest day working, hundreds more driver shifts have been covered this weekend, cutting cancellations now and in the long run. At TransPennine Express, operator-caused, on-the-day cancellations averaged around 2% in the last year, compared to 5% in the year before it was taken into public ownership. On CrossCountry, we took immediate steps to implement a remedial plan to reduce its cancellations and get services back on track. Its reduced timetable has brought greater stability, and I expect even greater reliability in the long term as the full timetable returns today.

Those are early signs of what happens when a Government get a grip and put passengers at the heart of decision making. Resetting industrial relations is already having a direct impact on better services, but it will take time to pass all the benefits on to passengers. We have to be clear-eyed about the problems, but we are committed to full transparency. I can announce today that we will be fully transparent with passengers by displaying performance data at stations to demonstrate how the railway is working and to allow the public to hold us to account as we deliver change. That is important, because the railway is a promise—a promise to passengers from the moment they buy a ticket that the train will arrive on time, as the timetable says.

While there are encouraging signs, I am not naive to the reality that passengers will see only a broken promise so long as the departure board shows trains delayed and services cancelled. That is why I have approached the situation with the urgency it demands, including focusing on performance today; bringing together industry to make it clear that improvements that can be made now must be made now; and using every tool at our disposal to drive improvements as fast as possible.

At the same time, the root of the problem grows deeper. Decades of muddled decision making have left the railway fragmented. We have tolerated an unworkable system of track in one organisation and trains in another for decades too long. This Government will turn the page on that chapter of fragmentation. I have wasted no time in kick-starting the long-term reform that our railway desperately needs. We have wasted no time in bringing train operating companies under public ownership. As today’s figures show, we have wasted no time in getting around the table with unions and making change happen now. That is what moving fast and fixing things looks like, and I commend this statement to the House.

I thank the Secretary of State for her statement and for sharing an advance copy. I agree that rail performance is a key concern to passengers throughout the country, and it is a fair criticism to say that several operators have consistently underperformed. That is why, when we were in government, we took action to improve performance on our railways, investing more than £100 billion to operate and enhance our railways since 2010, and electrifying more than 1,200 miles of track—compared to just 63 miles under the last Labour Government.

I am glad that the Government are taking forward the framework offered in the previous Conservative Government’s Williams-Shapps review. Having a more joined-up rail network should indeed deliver key improvements. However, it is disappointing that the Government have progressed with their plans for the effective nationalisation of the rail operators by ending private rail operator franchising, despite all the evidence pointing to the fact that that will be contrary to the aim of improving rail performance.

We know that while in some cases it has been necessary in the short term to bring rail operators into public control, it has not made the difference in performance that the Government would have us believe. It takes only a cursory glance at passenger rail performance statistics to see that some of the rail operators operating under public control have done little or nothing to improve cancellations or delays in relation to other operators. For example, the Secretary of State mentioned TransPennine Express and a decrease in cancellations since the operator was taken into public ownership, but she made no reference to delays. Data from the Office for Rail and Road show that in the four years prior to the train operator coming under public control, passengers faced an average of 8,130 delay minutes per month. From period 2 of 2023-24, when the operator was brought into public ownership, up to period 4 of 2024-25, average monthly delays have increased by 1,677 minutes, to 9,807 a month. In addition, for the year ’23-24, data shows that train operators run by private companies in England had an average on time rate of 64.36%. For train operators in public control, by contrast, the average was 57.7%—a difference of just under seven percentage points.

Public ownership is not the panacea that the right hon. Lady claims, so it is disingenuous for the Government to argue that wholesale public control of rail operation will do everything to improve performance, particularly for operators that are already performing well. Under the Government’s plans to end private rail operator franchising, the first contracts set to expire and be picked up by the Government are some of the highest performing franchises. The Government risk making the mistake of taking credit for comparatively strong performance, which will occur not as a result of their measures but as a result of the successes of the previous private franchising. That would mean the Government drawing the wrong conclusions from their actions, and it would have implications for future decision making.

It should be appreciated that the role of open access operators has been one of the greatest success stories within our rail network. It is therefore incumbent on the Government to provide greater clarity to the sector on how their plans for the rail network will impact on open access operators. It is also essential that the Secretary of State finally clarifies the long-term plan for rolling stock under the Government’s measures.

I appreciate that in Labour’s brave new world, all decisions are reflected through the ideological prism of “public good, private bad”, but there is a fundamental risk that the Government are taking ideological action to the long-term detriment of rail performance. Among our counterparts in Europe, it is widely acknowledged that rail privatisation has been successful in increasing passenger numbers, encouraging investment and controlling costs. In Italy, for example, prices have reduced by 31%, and Austria has witnessed a 41% increase in service frequency. There is a serious risk that the Government’s plans will take us backwards on those key areas without offering any promise of improvement on performance, or improved journeys or fares for passengers.

We all fully acknowledge the difficulties facing our railways, and nobody should accept poor performance —we have, unfortunately, seen that in some areas of our network—but merely enacting demonstrative but counterintuitive measures designed to communicate action is no substitute for making measured and pragmatic choices. For example, the Government and the Secretary of State have chosen to offer inflation-busting pay rises with no working practice reform in exchange. Without substantial working practice reform, it is deeply unlikely that the cost of the pay deals will be offset by improved performance, and the failure to introduce working practice reform will mean continued performance difficulties on our railways.

Can the Secretary of State offer a guarantee today that ending private rail franchising without implementing working practice reform will lead to demonstrably improved performance? If she cannot offer that guarantee, the Government should shelve the ideology and take a step back to pause and examine whether their package of measures will truly improve rail performance. It surely makes more sense to learn from the performance statistics; to understand from the experience of the continent and our past the improvements that the private sector can bring; and to prioritise the practical over the ideological.

I am grateful to the shadow Secretary of State for acknowledging that we provided the statement in advance, and I suggest that next time he reads it before he responds. He will have heard me say that public ownership is not a silver bullet, hence why we are setting out a substantial package of reforms. As I also mentioned, that includes substantial workforce reform, including developing training policies—that is one of the ways in which the recruitment of drivers has been really held back—and reducing reliance on rest day working agreements.

The shadow Minister might also want to check the latest statistics on TransPennine Express. It had the largest increase in punctuality of any operator contracted to my Department, including all those in private ownership. We have been clear that open access should continue where it does not abstract revenue from the overall network and where there is capacity. There have been good examples, such as Lumo and Grand Central, and we are very happy to continue working with them. We will publish a long-term rolling stock plan in due course.

I call the Chair of the Transport Committee.

The Transport Secretary’s statement is hugely welcome. Bringing privately owned train operating companies into public ownership as well as setting up GBR will inevitably add to her Department’s workload, so what preparations is she making to manage that additional workload?

I am grateful that my hon. Friend is concerned about my work-life balance—so am I. We are staffing up the operator of last resort, as it is currently known—we will shortly change its name, as it will no longer be the operator of last resort—and the Department has significantly increased its capability. Under the previous Administration, no one in government took responsibility for the running of the railways. We are taking a very deliberately different approach and, as passengers-in-chief, we will ensure that both the operator of last resort and the Department are sufficiently staffed up to manage the quick and successful transition of franchises into public ownership.

I call the Liberal Democrat spokesperson.

I thank the Secretary of State for advance sight of her statement. I also welcome the new shadow Secretary of State, the hon. Member for Orpington (Gareth Bacon), to his position.

The Lib Dems welcome the Secretary of State’s statement that performance is improved, and commuters and businesses are relieved that industrial action has been curtailed. It is disappointing, however, that the unions were not required to agree any meaningful improvements to productivity as part of the settlement. Clearly, we are not yet out of the woods—or perhaps I should say the tunnel. Under the Conservatives, delays, cancellations and overcrowding became commonplace. Last year, more than 55,000 rush hour trains were either partly or fully cancelled—a 10% rise on the previous year, and the worst of any year since 2019. Although the latest news is welcome, there are many miles left to go on this journey. The Government’s policy of nationalisation is, as the Secretary of State herself concedes, no silver bullet. Earlier this year, the Office of Rail and Road found that four of the eight least reliable operators, with the highest cancellation rates, were public, while the three most reliable operators, with the lowest cancellation rates, were private.

I have three questions for the Secretary of State. First, what steps is she taking to ensure that the worst, rather than the best, private operators are nationalised first? Secondly, where a private operator’s performance is of a higher standard than that in the public sector, will she consider extending its contract? Finally, given the still shocking level of accessibility on much of the network, will she urgently provide an update on when the stalled Access for All programme will be back on track?

To confirm, we are working with the trade unions at the moment on productivity improvements. We are clear that some of the practices in place on the railways are not acceptable or fit for modern and efficient railways. In the pay deal, there was a side letter and agreement to work through training improvements, and we want to ensure that that is delivered. The previous Government’s approach meant that they not only failed to deliver any workforce reform improvements, but presided over the longest industrial dispute in our railways’ history, costing the taxpayer and passengers hundreds of millions of pounds.

The hon. Gentleman is right to point out that cancellations are high in the publicly owned TOCs. That is a result not least of the fact that the ones that are in public ownership were already the worst performing, and we need to look at how they have improved under public ownership. The real benefits will be brought about under Great British Railways, when we will be truly able to integrate track and train and deliver those improvements. We will set out the schedule for bringing the private TOCs into public ownership once Royal Assent has been given to the Passenger Railway Services (Public Ownership) Bill, but the right balance must be struck between performance and return for the taxpayer, because we are spending hundreds of millions of pounds in dividend payouts and management fees.

The hon. Gentleman is absolutely right to mention the Access for All programme and accessibility, which has not been good enough under Network Rail. I am happy to write to him about specific stations in the programme.

Everyone is praising my right hon. Friend to the heavens now that High Speed 2 will end at Euston. She is welcome to Old Oak Common in my constituency any time to have a look-see at progress there. However, can she help to fix the daily delays that constituents are facing on Crossrail? West Ealing and Acton Main Line are getting a worse service than they were before all this. We want to build, build, build, but people in new homes need to be able to travel.

The day when everyone is praising me to the heavens on HS2 is one I look forward to. As my hon. Friend knows, brand-new Elizabeth line trains are on order; the Mayor of London was awarded a £485 million capital settlement in the Budget partly for those trains, which are being produced at Alstom in Derby. That will significantly reduce the overcrowding and delays that she talks about. The Department works with the Mayor of London very closely on addressing those delays.

I thank the Secretary of State for coming to the House and updating us, because it gives her an opportunity to correct the record. She may have inadvertently misled the House at the last Transport questions about the Birmingham to Hereford line and West Midlands Railways’ performance. Back in May, a terrible one in 10 of those services was being cancelled, but by October when Transport questions took place, one in six Birmingham to Hereford services was being cancelled. Will the Secretary of State commission her officials to talk to representatives from West Midlands Railways about that line, and find a way to move fast and fix that service?

Either the Rail Minister or I will of course seek to meet representatives of West Midlands Trains to address its performance.

I call Select Committee member Laurence Turner.

The shadow Secretary of State said that we should pay attention to performance statistics. The figures that I have obtained from the Department show that over the past seven years, there was a 35% increase in temporary and emergency speed restrictions on the network. The Secretary of State has a difficult inheritance, but can she set out for us the work that she is doing to refocus the industry on the hard graft of understanding, maintaining and improving our crumbling infrastructure?

Shadow Great British Railways brings together the Department, Network Rail, and those operators that are already in public ownership to look at integration and ensure that our investment in the network delivers improvements for passengers as quickly and efficiently as possible. That work will absolutely cover maintaining the network, and we will set out how we will do so in the next control period, as we look towards the second phase of the spending review.

I welcome the gusto with which the Secretary of State approaches her work, and in particular her motto, which is “Move fast and fix things.” Has she spoken to Network Rail recently? Its motto seems to be “Move slow and break things”, at least in Oxford, given the way it has mismanaged the Oxford train station upgrade. For the second Christmas in a row, businesses along the Botley Road will not be open. We have a meeting later this week with those businesses, and I have asked for a meeting with the Rail Minister, but he seems too busy. Would the Secretary of State give me just a moment of her time, so that I can work with her on how we can move forward? This is not acceptable, is it?

I completely empathise, and agree that the situation in Oxford is not good enough. The hon. Lady’s characterisation of Network Rail is partly why it is being abolished as we establish Great British Railways. I will of course meet her to discuss how we can improve the situation.

I welcome the Transport Secretary’s comments today, and her emphasis on good industrial relations in the rail industry. Why does she think that this Labour Government were able to work with trade unions such as ASLEF to end the national strikes, improving services for passengers within weeks of taking office, when the previous Conservative Government were unable to do so over several years?

The truth is that the previous Government deliberately provoked and prolonged that strike, the longest in the history of our railways. They budgeted for a pay settlement not far off where we landed, and that pay settlement has already paid for itself through increased revenue and improved services for passengers.

Chiltern Railways was absent from the Secretary of State’s statement, but when it comes to rail performance, for my constituents —both those on the Chiltern main line and those on the Aylesbury branch—daily overcrowding is a reality, with passengers often being left on the platform. Given that the previous Government stepped up, with a commitment to ensuring that Chiltern got more rolling stock to tackle the overcrowding challenges, will the Secretary of State make it a double priority to get Chiltern those extra trains and end this overcrowding?

The hon. Gentleman is absolutely right. Chiltern was the worst-performing operator last year, in terms of the reduction in punctuality, which further makes the case for public ownership. The previous Government made lots of commitments, few of which were funded, but I will take that question away and determine where the rolling stock order is.

I call Select Committee member Catherine Atkinson.

I welcome the Secretary of State’s success in ending national industrial disputes as a first step to delivering better services for rail passengers. Does she agree that the establishment of Great British Railways in Derby represents a further positive step in getting Britain moving again? Can she update the House on the governance framework for shadow Great British Railways, and how it will work with stakeholders on functions such as producing a business plan?

I was delighted to be in Derby recently to confirm that the headquarters of Great British Railways will be in that rail city. I am also delighted that, as I say, Alstom is manufacturing the new Elizabeth line trains, as a consequence of funding awarded in the Budget. Shadow GBR is really important for engaging with stakeholders and, crucially, putting passengers at the heart of developing a new culture—and a new organisation, in Great British Railways. It has the expert chairing of Laura Shoaf, who brings substantial planning and transport experience from her time as chief executive of West Midlands combined authority.

I call Select Committee member Rebecca Smith.

The hon. Lady is absolutely right, and unfortunately that is the picture across too much of our railways. The workforce terms and conditions are simply not fit for purpose. Part of our inheritance is that we do not have a workforce that can deliver a modern and efficient railway. We are working with Great Western Railway to address that egregious issue, and we will come back to the House shortly to set out our progress.

I call Select Committee member Dr Scott Arthur.

I thank the Secretary of State for her statement, and for the leadership that she is showing to get our railways back on track—sorry for the pun. I am pleased that she mentioned LNER and Lumo, which do a fantastic job of connecting Edinburgh and London, and of providing a stress-free alternative to flying. When she first took up her post, she was clear that she wanted HS2 to get a grip of costs. Does she feel vindicated, given the reports over the weekend of more than £100 million being spent on a single structure, despite some of those involved saying that they were not aware of the need for it?

It was extraordinarily frustrating to see the news of the obscene amounts of money spent on that structure to do with HS2. That happened under HS2’s previous leadership. We are resolving this by bringing in Mark Wild imminently to lead the organisation, and we are also resolving issues around cost control and governance through James Stewart’s governance review of HS2. These things happened under the previous Government, and fortunately the electorate resolved that issue for us on 4 July.

After a weekend of cancellations at Windermere, Oxenholme and elsewhere, will the Secretary of State have a word with Northern Rail, to remind it that it is meant to run a rail service on a Sunday? Will she also speak to Avanti —many hon. Members may agree with me on this and have the same experience—because services from London Euston to Glasgow Central are habitually stopped at Preston, even when the track is clear all the way to the Scottish border and beyond? It harms my constituents at Oxenholme, and those in Penrith, Lancaster and Carlisle.

I have routine conversations with Northern Rail, as the hon. Gentleman would imagine. The most recent was on Thursday. We facilitated a new rest day working agreement with it, which has significantly reduced driver cancellations, but there is an outstanding issue with conductors; there is a very similar situation with Great Western. In parts of Northern Rail, particularly in the north-west, Sundays are not included in the working week. That has led to an unacceptable amount of cancellations, which we are working to resolve. I will raise the issue of stopping at Preston with Avanti separately.

Doncaster has a long and historic relationship with the railways; we are home to both the Mallard and the Flying Scotsman. The financial sustainability and success of rail are critical to our local economy, so can the Secretary of State update the House on the net cost of the solution that she brokered to end the strikes?

My hon. Friend is absolutely right. The strikes were costing us £20 million a day in lost revenue. That is aside from the economic impact of people coming off the railways and not making journeys to work, to see friends and family or to visit other towns and cities. Settling the pay disputes that were pervading our railways has already paid for itself.

What lessons has the Secretary of State drawn from rail networks in other countries about rail performance and safety, given that many of them are now automated? Will she make herself a heroine in the south-west by dealing at long last with the notorious Tisbury loop, west of Salisbury, which has added inestimable time to rail journeys to the far south-west? The situation could be resolved at very little cost.

I will look into the issue for the right hon. Gentleman. It may be that the Rail Minister has to make himself a hero; I will ask him to meet the right hon. Gentleman to discuss the matter.

They say that money doesn’t grow on trees, but apparently it flies out the window for £100 million bat caves. Does my right hon. Friend agree that HS2 should apologise for its fur-brained scheme? How can we quickly learn the lessons to ensure good taxpayer value for money as HS2 continues?

I was absolutely horrified, on entering the Department, to learn that there had been no routine ministerial oversight, in any sense of the word, of HS2 for some time. We immediately established a cross-ministerial taskforce, comprising me and the Treasury, to oversee HS2’s costs. I have written to the chair to make it clear that, beyond safety, his first and abiding priority is to bring down costs. I have commissioned a governance review, led by James Stewart. We will look at the structure of HS2 Ltd, which has been too much at arm’s length, and too free to spend taxpayers’ money for too long.

GWR, which serves my Bath constituency, has been performing in the most disappointing way, to say the least. Especially on Sundays, cancellations and delays are the new norm. Engineering works are among the problems, but the train driver shortage is the biggest problem. What exactly will resolving what the Secretary of State calls the rest day working issue mean for my constituents? When does she expect them to see tangible change?

The problem across the entire railway is that we do not have sufficient drivers or staff, so too many parts of the railways are reliant on rest day working agreements. We should not have to rely on people volunteering to come on shift in order to run a Sunday service, but unfortunately that is the case at Great Western Railway. We will not be harmonising contracts or terms and conditions at Great British Railways, as we have established, but we need to get drivers and conductors on modern terms and conditions that reflect the railway that we need. We are attempting to address the specific issue at Great Western Railway; as I say, we will come back to the House soon with an update on progress.

At a recent meeting with me to discuss rail improvements for my constituents, the chief executive of Southeastern—a nationalised company, as has been confirmed—was able to confirm that additional services between Dartford and central London are due to commence in December, as the Secretary of State mentioned. Can she outline any additional welcome improvements to services in the south-east, or other parts of the country, to which we can look forward?

We will see 44 additional trains per day on the new timetable from Southeastern. CrossCountry restored its full timetable today, and we hope to see new timetables from TransPennine Express in the coming weeks. We have procurements out for TransPennine Express and Southeastern, I believe, so my hon. Friend will see new rolling stock in due course.

People can only go so far out of London into the Spelthorne constituency on their Oyster card; they have to buy a train ticket for the last couple of stops. This anomalous situation means that major employers such as BP and Shepperton Studios send buses up the line to pick up their workers to do a day’s work. The Secretary of State will soon be the proud owner of South Western Railway, Transport for London and Great British Railways, so can she please make herself an absolute hero in Spelthorne and get it into the Oyster zone?

The Mayor of London is the owner of Transport for London, but we can absolutely work together to see whether anything of that nature can be achieved. I see no reason why we cannot make progress on that issue.

Commuters at Arlesey and Hitchin stations in my constituency are driven to despair by the shocking state of Thameslink services, with delays and cancellations an all too frequent feature of everyday commutes. I welcome the urgency with which the Secretary of State is starting to tackle the long-term causes, from industrial disputes to fragmentation. In the interim, will she meet me to discuss how we can push Thameslink to do more to make sure we finally make these delays and cancellations a thing of the past?

I am grateful for those comments. Govia Thameslink had an improvement of 3% in its cancellations on last year, but it is still falling behind on punctuality.[Official Report, 25 November 2024; Vol. 757, c. 8WC.] (Correction) I am happy to meet my hon. Friend to discuss what more we can do.

I welcome the Secretary of State’s update on how the UK Government are following in the Scottish Government’s footsteps by nationalising train operating companies, but Labour cannot claim to be nationalising the railways while leaving the trains in private hands. Even with the passage of her Bill, profits will continue to flow out of our railways to rolling stock companies, some based in tax havens, rather than be reinvested in services and infrastructure, and consequently in performance. Will the Secretary of State set out when she plans to bring forward proposals to nationalise the rolling stock companies and bring the railways back into public hands in their entirety?

One of the purposes of this reform was to save the taxpayer money, and bringing operators into public ownership as their contracts expire means there will be no compensation. We will also be saving the money currently leaking out of the system through dividends and management fees. It would not be fiscally prudent in the current environment to spend billions of pounds on nationalising the rolling stock, so we will continue the current arrangement whereby private finance is leveraged into rolling stock companies.

My constituents are reliant on a train line between Reading and Waterloo that has seen no improvements to frequency or journey times since the 1970s, so they will warmly welcome the steps the Secretary of State has outlined today to launch a consultation setting out plans for unification across the railway. Does she agree that a modern railway system is an essential step in getting our economy growing?

I absolutely agree. For too long, passengers have not been able to rely on the railways, and it has driven people off them. We see in the latest Transport Focus data that people are gradually starting to feel more confident in using the railways, but we have a long way to go to turn the tide on the last 14 years of failure.

Improved rail performance is of course welcome, but my constituents in Somerton and Langport are not served by the railway at all. A family in Curry Rivel recently wrote to me; they are over half an hour away from the nearest train station, leaving them isolated from the train line. Will the Minister outline any plans she has to connect my constituents in rural areas to the railway?

We will be setting out a long-term infrastructure strategy in spring next year, working with the Ministry of Housing, Communities and Local Government and colleagues across Government to ensure that we are unlocking the transport infrastructure that will be of benefit and allow us to meet our housing targets but also improve rural connectivity. My Department is also reforming how we do appraisals to ensure we maximise our investment in transport infrastructure for economic growth and to tackle socioeconomic inequality.

I welcome the Secretary of State’s decisive action to end industrial action, get the railways moving again and unlock the barriers to economic growth that we absolutely need to sweep away to get this country growing again. It is particularly welcome to hear about the green shoots of recovery and the improvements in LNER’s performance. However, passengers at Morley train station tell me that the services are still unreliable, so can the Secretary of State update the House on what she will do to improve the reliability of the train services running through Leeds South West and Morley and the rest of the UK?

LNER’s reliability has improved in the past year, but I am not naive and do not think we are there yet; these are only the green shoots of recovery. The real improvements from these reforms will come when we can truly integrate track and train. LNER and the east coast are a perfect example of where the previous system was failing. Billions of pounds were spent on upgrading the east coast main line, but with absolutely no improvement for passengers. By integrating track and train, we can ensure that those upgrades to the east coast main line are fully realised for passengers and that the timetable and service from LNER are improved.

My constituents have to rely on two of the most unreliable train operating companies: Northern and TransPennine Express. Too many of them are having to drive to get to work on time or get a taxi to get back in time for after-school club. When does the Secretary of State think my constituents will have the confidence to go back to using the train, rather than relying on an app on their phone?

The hon. Lady is absolutely right. Northern and TransPennine Express serve my constituency as well, and some of the most deprived parts of the north of England. Performance has not been good enough. TransPennine in particular has seen insignificant improvements since it was brought into public ownership, but neither operator is where it needs to be. We are working closely with them as a priority through the operator of last resort, not only to drive efficiencies, but crucially to drive performance. I was struck when I met Network Rail and some of the managing directors of the worst-performing operating companies that they made it clear that the previous levels of performance had simply been tolerated and accepted as normal across the industry. They are under no doubt that under this Government, that level of performance will no longer be tolerated.

My constituents in Calder Valley are also sick of the performance of Northern Rail. In July, the Department for Transport issued a breach of notice to Northern Rail, because of its underperformance. Northern Rail’s chief operating officer said that performance was “not good enough”. Will my right hon. Friend confirm that she will prioritise getting Northern Rail back on track?

We can hear from the House how much of an impact the levels of service on Northern Rail are having. Andy Burnham texts me every Monday about the performance on Northern trains, so I can assure my hon. Friend that it is a priority.

Earlier this year, Avanti West Coast services on the north Wales main line had on-the-day cancellations of more than 20%. Its timetable is yet to return to pre-covid standards, and there were no direct connections with London on Saturday. Given that the Avanti West Coast contract runs to 2026, what is the Secretary of State doing to ensure a reliable mainline service for the people of north Wales?

My views on Avanti’s performance are well known, I think. The right hon. Lady is absolutely right that it has not been acceptable. Shockingly, the way that national rail contracts were written under the previous Government means that Avanti has not defaulted. It is on a remedial plan to drive improvements, and we have seen a small increase in punctuality, but it still has a long way to go. We are watching over Avanti like a hawk to make sure that if it does default, it can be immediately brought into public ownership.

I extend my thanks to the Secretary of State and the team for the early action they have taken to improve the reliability of the network. My constituents struggle with two lines. One is the Cumbrian coast line, on which I ask the Secretary of State for any update on the ongoing conductors’ dispute. That is adding to a lack of reliability in the system for those in Whitehaven and Workington and elsewhere. I spend too much time—far too much time—on Avanti West Coast services, which gives me the opportunity to speak to constituents who cannot use the wi-fi, because it is highly unreliable. It is a big issue for productivity, so will the Secretary of State raise that with Avanti when she meets its representatives?

Wi-fi is one of the examples of passenger experience that we are clear needs to be delivered through Great British Railways. I take East Midlands Railway, and the wi-fi is even worse on that line. I would be happy to raise that issue with Avanti. We are in the process of attempting to facilitate an agreement with Northern on the conductor issue that my hon. Friend mentions in the north-west, which has the most egregious example of working terms and conditions being outside of a normal working week.

I join the chorus of those talking about GWR’s shocking Sunday service. Its timetable is a work of fiction akin to “Chuggington”, which I often watch with my daughter. Were that the only problem that my constituents faced, we might be able to look past it. However, the lack of carriages on trains home on a weekday is a huge problem—my hon. Friend the Member for Tewkesbury (Cameron Thomas) recently used some choice language about it, which I urge hon. Members to look up online; I will not report it in the House. We often find that there are only half the carriages that we need to get home. I recently stood by the loo for 90 minutes until Stroud, which was an unpleasant experience shared by many others on the train. What will the Secretary of State do to reassure me that GBR will solve that problem?

Again, the current fragmentation of the network means that we have dozens of different types of rolling stock across the network, all procured by different operators at different times, which are not interoperable between operators and cannot be moved around the network precisely when there are issues such as those that the hon. Gentleman described. With the establishment of Great British Railways and a long-term rolling stock strategy, we can procure fewer types of trains and start to move them around. I will take away the specific issue of short-form trains on Great Western Railway and write to him about what action can be taken.

Richard Quigley, can you confirm that you were here at the beginning of the Secretary of State’s statement?

No, I was not.

I welcome the Secretary of State’s statement, and particularly the sentiment about putting passengers first and getting a grip. Those who are served by Great Western, which runs to south Wales as well as down the main line to Penzance in my constituency—Great Western has already been heavily criticised this afternoon—will be aware that we are getting none of the benefits of HS2 but a lot of the disruption as a result of the work at Old Oak Common. Will the Secretary of State meet those Members of Parliament who are worried about the prospect of six years of sometimes severe disruption to their services to see whether we can minimise the impact?

I am conscious of the disruption that will be experienced by passengers coming from the south-west. We are putting in place plans so that trains can come into Euston rather than Paddington, but it is undeniable that there will be substantial disruption during the Old Oak Common works. I or the Rail Minister will be happy to meet colleagues who are affected.

I call Richard Quigley—honesty goes a long way.

Thank you, Madam Deputy Speaker; I truly am grateful. I was going to say that my train was late, but that would not actually be true. [Laughter.]

Speaking of my right hon. Friend being a heroine, finding a solution to the Isle of Wight ferries issue would result in our erecting a bronze statue on the seafront in Cowes. Does she agree that the Conservatives’ failed experiment with rail privatisation has caused passengers misery and cost millions? What will she do to make things better?

I am grateful to you, Madam Deputy Speaker, for allowing my hon. Friend to ask a question. I thought he would mention the ferries as well—he also texts me often about the ferries. I am grateful for his point. The new model will deliver not only better services for passengers but a far better settlement for taxpayers, who have been ripped off under the previous model for far too long.

I thank the Secretary of State very much for her statement. She has been clear that transparency for passengers will be achieved by displaying performance data. How do the Government intend to ensure that, as well as knowing whether their local line is not doing well, passengers know that their taxes are being used not simply to pay rail staff higher wages, but to get trains to reach their destinations in a time-effective and cost-effective way?

The purpose of displaying performance data at stations is to give passengers certainty and transparency about the state of the railways, but Great British Railways will also be far more accountable than under the current system. At the moment, to hold the railways to account, there is a complicated mix of responsibility between Network Rail, the train operating companies and the Department for Transport. Great British Railways will provide a single point of access to the railways for politicians and for communities, and we will be able to ensure that the organisation is single-mindedly delivering for passengers.