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Budget Resolutions and Economic Situation

Investment in transport is absolutely essential for the future of our economy, which means that we need support for transport now and for future projects. I regret that no support was announced in the Budget statement for the maintenance of bus services, which are often important in getting people to work. Rising bus fares are a great burden, and in many cases essential bus services are simply being stopped. Nor was there any short-term relief from ever-rising train fares. I regret the absence of any measures in those areas, which are so vital to people today. There were some encouraging statements about future transport investment. In the short time that I have available, I want to ask some questions about the meaning behind some of those headline statements. They are encouraging, but a lot lies behind them. I first wish to refer to rail. I very much welcome the increased commitment to rail electrification. I listened carefully to what was said about Wales, and we would like to know exactly when rail electrification will come to Swansea, which was not very clear. I also welcome the commitment to more electrification across the north of England, and particularly the statement that part of the northern hub had now been agreed to. Will the Government give a firm commitment to investing half a billion pounds in the northern hub, which is a major scheme to improve rail services right across the north, including places such as Liverpool, Manchester, Leeds, Sheffield and Newcastle. That £0.5 billion investment would produce a £4 billion boost to northern economies. We are still being told that the value-for-money studies are continuing, to assess whether the whole scheme can be made available. I remind the Minister that the Government are quite rightly investing £15 billion in Crossrail and £5 billion in Thameslink, yet the proposed £0.5 billion for rail right across the north is subject to scrutiny that has not yet come to a conclusion. I should like to hear a firm commitment to the northern hub today. Major questions have been raised about the disparities in transport investment in different parts of the country. The passenger transport executive found figures showing that three times as much per head was invested in transport in London and the south-east as in the rest of the country. The Institute for Public Policy Research North, examining the implications for transport investment of the autumn statement, in which welcome new investment was announced, found that £2,700 per head was being invested in London and only £5 a head in the north-east. I accept that our capital city needs continuing major investment in transport, but given the needs of the country as a whole it cannot be right to have such wide disparities. Will the Economic Secretary consider publishing the impact of spending decisions on transport across the country and in the different regions? All parts of the country need investment, but it is simply not right for the interests of the country overall that we continue to have an overheated south-east, while other parts are without essential transport investment. The Budget contained announcements on road investment. More investment in roads—appropriate roads—is required. We are told that there will be a feasibility study on bringing private investment into our road system, but we need to know a great deal more about what that actually means. We are told that there will not be charges for existing roads, but would the widening of existing roads lead to charges? Is the policy not road charging through the back door, without the safeguards that were considered in the past when road charging as a national policy was under national discussion? In previous discussions on road charging, it was always assumed—and indeed stated—that if road charges were levied, there would be a compensatory reduction in road taxation paid by the motorists, but it appears that under the Government's new plans, that reduction in taxation will go to the private sector investors as an incentive to them, and will not accrue to the motorist. This is a major issue. It has been suggested that bringing more private sector investment into roads by leasing or selling our road system would be similar to privatisation of the water utilities—that is what the Prime Minister stated. If it is, it could well lead to a great hike in charges. However, the leasing or selling could be more akin to the Railtrack situation, when maintenance in infrastructure was severely reduced, with tragic consequences.