PARLIAMENTARY DEBATE
Transport: Economic Growth - 26 June 2025 (Commons/Commons Chamber)

Economic growth is this Government’s top priority, and the Chancellor put growth right at the heart of her spending review, announcing more than £92 billion of capital investment in transport infrastructure to give people access to jobs and opportunities. This includes long-term funding for our largest city regions, billions of pounds of investment in roads, hundreds of millions of pounds for walking and cycling, and delivering transformative projects such as the trans-Pennine route upgrade and East West Rail. This will make a real difference to people’s lives up and down the country, now and in the future, showing the difference a Labour Government make.

Every French city with a population of more than 150,000 has a mass rapid transport system, yet over 30 UK cities or towns of that size still lack it. Research from Centre for Cities shows that poor connectivity holds back growth and productivity by limiting mobility. A key reason why we have so few is cost, because building a kilometre of track in the UK is twice as expensive as the European average. Can the Secretary of State set out what her Department is doing to bring down costs and help kickstart a tram-building revolution?

I am grateful to my hon. Friend for raising that matter with me in person a few days ago and for sending me further information on the report and the research. Trams do have the potential to support growth at much lower cost than heavy rail, but he is right that the cost per kilometre of new tramline is much more expensive in the UK than elsewhere in Europe. I have asked my officials to look into what we can do in this area as we look to unlock growth across the UK.

We have a proud community in St Athan in the Vale of Glamorgan that is both growing and thriving thanks to the economic opportunity provided by the Bro Tathan enterprise zone. Will the Secretary of State work with Welsh colleagues to progress funding for a new railway station in St Athan to support that growth and provide dignity for the residents?

As we have seen in so many areas, the previous Government may have made promises about this station, but they allocated no feasibility or development funding to get the project moving. Through the spending review and infrastructure strategy, this Government will provide at least £445 million of rail enhancements over the next 10 years to deliver long-term infrastructure needs in Wales, including new stations. Details of how this funding will be allocated will be announced in due course.

My local economy on the Isle of Wight is entirely reliant on ferry services for the movement of people, the delivery of products and, in the case of tourism, for customers. Will the Minister acknowledge just how important unregulated ferry services are for the entire economic wellbeing of the Isle of Wight?

I do recognise that issue. The hon. Member and his colleague on the Isle of Wight have raised this matter with me previously, and I am meeting his colleague directly after this question time to talk further. The Under-Secretary of State for Transport, my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane), hosted a meeting recently and we are considering what further we can do as a Department to support local leaders in finding a satisfactory resolution for his constituents.

A number of immediate airport expansions are now planned around the London area, which is fair enough, but there is some concern about the protection that is required for vital links to airports in the regions and nations of the rest of the UK. Will the Minister provide an assurance that work will be done to protect those links and the local economies that rely on them?

The hon. Gentleman will know that we have invited Heathrow to bring forward proposals for a third runway and we are expecting further information on that this summer. We are clear that part of the expansion of Heathrow is about improving regional connectivity. He will also be aware that we have provided airports such as Doncaster with Government money to support that reopening.

I call the shadow Minister.

To achieve growth, businesses rely on our world-class logistics and haulage sector. Given that Logistics UK said that it was “disappointed” that the logistics sector had not been identified as one of the foundational industries in the industrial strategy this week, what happened? Did the Department for Transport go into bat for our logistics sector? Did it lose the row? Or did it not bother? What will the Secretary of State be doing to ensure that our logistics sector is seen across Government as foundational to any growth mission?

It is my understanding that the logistics sector was pleased to be recognised as a case study in the industrial strategy. I know that it welcomed the announcement in the spending review of £590 million to progress the lower Thames crossing, which is a key strategic freight route. For many years the sector has been talking to us about improving the route from the south-east to the midlands and the north. Unlike the previous Government, this Government are finally getting on with the job. We have taken the planning decision to grant consent to the crossing and are making money available through the spending review to improve the country’s critical freight routes.

The Secretary of State clearly has not listened to Logistics UK—I hope that at least she knows where the lower Thames crossing starts and ends. Let us turn to another foundational industry to transport and growth: fuel. Elizabeth de Jong, chief executive of Fuels Industry UK said about this week’s industrial strategy:

“we are disappointed not to be named explicitly as a ‘foundational industry’ today, given the vital role of the fuels sector in enabling growth”.

Why has our transport-critical fuels sector also been left behind by the Government?

This Government’s industrial strategy sets out the sectors that have the potential to deliver economic growth and for which are competing internationally for mobile capital investment. My colleague the Minister for the Future of Roads and I meet repeatedly with the industry, be that to discuss fuels or freight and logistics. We are determined to get our economy firing on all cylinders, and we know what critical role the sectors he talks about play in that.

I call the Liberal Democrat spokesperson.

My party and I were pleased when the Chancellor recently announced funding for Northern Powerhouse Rail to improve connectivity. However, we still do not know on what the money will be spent. Any plan to boost the northern powerhouse must surely include a new main line between Manchester and Liverpool—a vital link that would not only drive economic growth across the north-west but strengthen connections between two of our greatest cities. When will we finally see the detail behind the Chancellor’s announcement, and will she meet with me and my hon. Friends the Members for Cheadle (Mr Morrison) and for Hazel Grove (Lisa Smart) to discuss proposals for the better linking of Manchester and Liverpool?

The mayors of Greater Manchester and Liverpool—Andy Burnham and Steve Rotheram—have made a strong case for improving rail connectivity between their two great cities. The hon. Member is right to say that this Government are committed to improving the country’s rail network. I hope to say more on schemes for the north in the weeks and months ahead. I assure all hon. Members that I will come back to the House swiftly when I have more information so that they can question me further.

Including Coppull railway station, I hope!