13 Feb
Question
Cost of Rail Services

This Question session in the House of Commons centered around the strategies and challenges in reducing rail service costs across the UK. The discussion commenced with a sharp focus on the Government's efforts to streamline rail expenses.

Heidi Alexander, at the helm of the debate, emphasized the Government's ambition to make railways more affordable by introducing public ownership and reforming fare systems. She highlighted a recent fare increase that was the lowest in three years, attributing it to the Government's commitment to simplifying the ticketing system and embracing technological advances like urban pay-as-you-go solutions.

2023

the year in which recent rail fare increase was mentioned as the lowest in three years.

Conservative speakers Sir Edward Leigh and Andrew Rosindell challenged the efficacy of the Government's plans. They spotlighted high fare rates and criticized nationalization and trade union influences as detrimental to cost reduction efforts. Alexander countered these claims by reflecting on past fare increases under the Conservative Government and emphasized funds directed to train company parent corporations.

Heidi Alexander was vocal about the Conservatives’ approach during the pandemic on Transport for London fares and criticized the SNP's fare hikes in Scotland. She assured that the Government aims to correct these pathways through strategic public ownership.

4.6%

current year's rail fare increase, presented as the lowest in three years.

Rosindell’s comments were refuted with direct references to Conservative policy outcomes, and the government reasserted its plan to manage railways effectively through Great British Railways. Alexander articulated confidence in cutting wastage in management fees and improving service reliability, addressing concerns raised by Jerome Mayhew about Scotland's nationalization experience.

The session outlined the central tension between nationalization versus current management, with frequent exchanges between sides reminding attendees of past actions and contemporary responses. Alexander promised further consultation on nationalization plans, underscoring a commitment to creating an integrated, value-driven rail service.

£1 billion

amount purportedly paid to train operating company parent firms since 2020, attributed to the previous Conservative Government strategies.

£600 million

additional cost purportedly added after ScotRail’s nationalization, as mentioned by Jerome Mayhew.

Outcome

The debate concluded with a reinforced Government position in favor of a publicly run rail system, aspiring for cost efficiency and service quality improvements, though contested by Conservative MPs pointing to inefficiencies seen in examples like Scotland.

Key Contributions

Sir Edward LeighMP
Conservative

Pressed for cost reduction strategies and suggested naming trains after Margaret Thatcher to emphasize free-market ideals against union practices.

Andrew RosindellMP
Conservative

Criticized Government's alignment with trade unions and called for immediate steps to combat high fares for British commuters.

Heidi AlexanderSecretary of State for Transport
Labour

Advocated for public ownership of railways, vowed to reform fare systems, and defended against Conservative attacks with specific fare statistics and historical context.

Joe PowellMP
Labour

Questioned fare increase decisions made during pandemic by previous Government and supported upgrade projects like South Kensington station improvements.

Douglas McAllisterMP
Labour

Alerted to high fares in Scotland post-nationalization, instructing not to follow its missteps.

Jerome MayhewShadow Minister
Conservative

Disputed benefits of nationalization citing ScotRail's financial inefficiencies and questioned the delay in Government's consultation on managing railways.

Original Transcript
Sir Edward Leigh
Gainsborough
Con
Question
UIN: 902768

9. What steps she is taking to reduce the cost of rail services.

Andrew Rosindell
Romford
Con
Question
UIN: 902784

21. What steps she is taking to reduce the cost of rail services.

The Secretary of State for Transport
Heidi Alexander

It is our ambition through public ownership to deliver a more affordable railway. This year’s fare increase of 4.6% is the lowest absolute increase in three years.

We are committed to reforming the overcomplicated fares system and expanding ticketing innovations like pay-as-you-go in urban areas across the country.

Sir Edward Leigh

When the Secretary of State finally steps in and knocks heads together and we get our Azuma train to Grimsby via Market Rasen, will she instruct the railway company to name the locomotive Margaret Thatcher to remind us all that the best way to reduce the cost of rail services is to end restrictive trade union practices?

Heidi Alexander
10:03

I hate to disappoint the Father of the House, but I am afraid that I will not be making such a commitment today.

Andrew Rosindell

The British people pay some of the highest rail fares in Europe. However, the Government seem to prioritise the size of the socialist state, by kowtowing to trade unions with radical public pay rises and nationalisation plans.

Will the Secretary of State instead please focus on improving the lot of commuters—particularly Romford’s hard-working commuters—and take real steps to reduce rail fares and improve railway services?

Heidi Alexander
10:05

I am surprised that the hon. Gentleman has the gall to raise this issue when, under his party’s Government, fares rose at around twice the speed of wages.

I also point out that since 2020, train operating companies have paid out nearly £1 billion to their parent companies, signed off by Conservative Ministers in the previous Government. If the hon.

Gentleman wants to talk about costs and value for money on the railway, I suggest he start by looking in the mirror.

Joe Powell
Kensington and Bayswater
Lab
10:05

It was, in fact, a Conservative Secretary of State who forced fare rises on Transport for London in exchange for covid emergency funding. What steps will my right hon.

Friend take to put TfL on a better footing in the future, including backing great projects such as the one in my constituency to upgrade and provide step-free access at one of the busiest stations in the country at South Kensington?

Heidi Alexander
10:06

My hon. Friend is absolutely right: in the middle of a global pandemic, the Conservatives were still obsessed with settling old political scores over fares in London, rather than doing right by the capital.

I vividly remember a meeting with the then Secretary of State to discuss how we could keep services safely running, which ended with him telling me, “This would have been so much easier if you hadn’t frozen fares.

” Unlike the Conservatives, this Government will always do right by the capital, as well as the rest of the country.

Douglas McAllister
West Dunbartonshire
Lab
10:06

Can I ask that this UK Government do not follow the approach taken by the Scottish Government on public ownership? ScotRail fares are set for another inflation-busting increase in April, following an 8.7% hike last year and the reintroduction of peak fares in September.

Does the Secretary of State agree that the SNP should be making rail more affordable, instead of hitting passengers with painful fare hikes time and again? The increases are bad for Scotland’s rail passengers, bad for our economy and bad for the environment.

Heidi Alexander

I assure my hon. Friend that we will bring the train operating companies into public ownership properly, and that we will not repeat the mistakes we have seen in Scotland.

Mr Speaker
10:07

I call the shadow Minister.

Jerome Mayhew
Broadland and Fakenham
Con
10:07

I am very interested by that last answer, because the Government do think that nationalisation will reduce the cost of rail travel. What lessons has the Secretary of State learned from the SNP’s nationalisation of ScotRail?

Heidi Alexander
10:07

We will be increasing value for money in the way we operate our railways. To start off with, we will be getting rid of up to £100 million a year in management fees that we are currently paying out of the public purse to the train operating companies.

We are determined to drive up performance on our railways and give better value for money to the taxpayer.

Heidi Alexander
10:08

I assure the hon. Gentleman that the consultation on establishing Great British Railways is coming soon, and I look forward to discussing it further with him.

I am confident that by bringing together the management of track and train, we can strip out duplication in our railways, provide better value for the taxpayer and ensure that trains are turning up on time, with reliable and punctual services. That is what we will deliver.

All content derived from official parliamentary records