Transport for the North annual conference
Our plans to increase government funding through the Network North plan and wider transport investments.
It’s great to be here in Liverpool.
Thank you to Lord McLoughlin for the invitation, and a huge thanks to Transport for the North.
Your partnership with government truly matters, and when you speak, we listen. That’s something I know from first-hand experience.
I want to start with some economic context if I may.
It’s been just over a year since the Prime Minister set out his economic priorities, and his plan is working.
Inflation – the biggest drag on household incomes and business profits – now more than halved.
The economy – predicted to fall into recession in 2023 – is now set to grow this year, and the year after.
And debt – at one point set to exceed 100% of GDP – is now on track to fall, giving the UK greater financial security.
And despite ongoing global headwinds – from Ukraine to the Middle East – it’s clear this government, under this Prime Minister, is making the right long-term decisions for our economy and the British people.
Now let me talk about High Speed 2 (HS2) and the Prime Minister’s Network North programme. One of those decisions was to cancel Phase 2 of HS2 and reallocate those savings to improve journeys for more people, in more places, more quickly.
It marked a radical change in government’s approach to transport.
I know that some did not agree with this decision, but instead of one line, for people travelling to London.
Our Network North plan will serve hundreds of places and tens of millions of people each day.
Since that decision was taken, I’ve been out across the North speaking to mayors and local leaders and businesses. And I’ve been grateful for the constructive nature of those conversations.
It’s important to me that every penny of HS2 savings from the North is spent well and makes a difference to transport in the North. Benefitting more people in more places, more quickly than was ever conceivable under the full HS2 project.
Let me set some of our plan out.
Network North investments will improve bus services across the North. They will resurface more roads thanks to the biggest ever increase in funding for local road improvements. And increase capacity and cut journey times along the pinch points that need it.
We know that Northern commuters are tired of overcrowding and we’re doing something about it.
We will upgrade and electrify the Hope Valley line, cutting the journey times and doubling capacity. We will upgrade and electrify lines between Leeds and Bradford. We will build new stations in Bradford and Rotherham. We will expand Northern Powerhouse Rail to include Sheffield, Hull, and Bradford.
And we will move forward with £12 billion to improve journeys between Liverpool and Manchester.
Let me focus on devolution because Network North is part of a pattern where, since 2010, the government has put more power in local hands.
Most of the North is now covered by Metro Mayors, armed with significant budgets and the heft to use them.
So, instead of decisions made by Ministers in Whitehall. Network North is opening up funding, building up infrastructure and giving local leaders a say in how to level up the cities and towns that need it most.
And unlike Phase 2 of HS2, we can move at speed.
Look at Bradford, where I was last week. I spoke to leaders there about our £2 billion commitment to fund a new station in their city and the ability to connect it up to Northern Powerhouse Rail.
Look at Liverpool, when I hear Mayor Rotherham’s enthusiasm to create a seamless transport system for the region, this government shares in every bit of enthusiasm.
The Secretary of State has already signed a Memorandum of Understanding that commits government to work even closer with the city to deliver these plans.
And when we talk about Liverpool, we’re talking about a city with a rich transport heritage, a port city, whose docks remain an important site for drawing in investment.
Where – just down the road – Peel Ports has invested £400 million in constructing ‘Liverpool 2’ to make room for the world’s largest container vessels.
And now that Liverpool succeeded in its application to become a freeport.
The region is set to see an estimated £850 million added to the local economy.
That’s a transformation that will usher in more jobs, more opportunities, more regeneration, and more freight moving in and out of ports.
And we’re already thinking about the implications of that.
Because more lorries carrying more freight can lead to congestion.
But by doubling rail freight capacity on the Bootle branch with an £8.3 million investment, we can reduce the burden on roads.
And as we look ahead to the Freeport Zone, a site has already been acquired with plans to develop a new strategic rail freight interchange. Of course, when opportunities begin to flourish in one place, people naturally gravitate towards them.
So, we’re backing the appetite to better connect Liverpool through the City Region Sustainable Transport Settlement (CRSTS).
Not only with £710 million from an overall pot of £5.7 billion. But with a further £1.6 billion to come in the second round of that settlement, all topped up by £594 million of savings from HS2 Phase 2.
That is money for City Regions.
With spending decisions made by City Regions.
And taken alongside wider government investment, the money is there to help local people now.
In Knowsley, the Secretary of State was there for the opening of a brand-new station at Headbolt Lane.
On the Merseyrail Network, trials are taking place for advanced battery-power solutions so that new rolling stock can thrive in a more sustainable future.
New walking and cycling routes will wind across the city region thanks to £37.5 million of Levelling Up Funding.
The first new Mersey Ferry in more than 60 years has been commissioned, and it will be built in Birkenhead.
Bus fares are capped at £2, ensuring people can access the services they need for less.
In short: this region benefits from billions of pounds in government investment. But, it is local leaders who determine what’s best for their communities.
In fact, the government is unleashing a wave of transport projects through ever-greater devolution of funding.
In the North East, we are improving bus services with £163.5 million through the Bus Service Improvement Plan.
In Yorkshire, Tyneside, and Teesside, we’ve worked with Transport for the North (TfN), local leaders and others to make sure the new East Coast Timetable achieves the best possible rail service.
The TransPennine Route Upgrade will form the foundation of Northern Powerhouse Rail thanks to an £11 billion investment.
On the Northumberland Line, we’re connecting local people with jobs, opportunity and each other thanks to government funding.
The government is listening to communities across the North, working with local leaders, and helping them to deliver on their priorities.
And we will continue to do that as we train our focus on all parts of the North outside the big city regions. From Cumbria to North Yorkshire, and Hull to Lancashire.
The government will soon announce plans to invest unprecedented sums in 14 rural counties, smaller cities, and towns in a ‘new deal’ for local transport.
We will give communities the impetus to tackle their transport needs.
And no matter the priority, it will be local councils working with local MPs and held to account by the local electorate, who will decide how and where this money is spent.
From the conversations I’ve had ever since I started in this post, I know this development will be welcomed by many in the room.
And it’s those conversations that have informed my approach as Rail Minister.
I understand that government doesn’t always know best. That it is Mayors, TfN, and local leaders who are best placed to make decisions that affect people’s lives.
That you know what your communities need, that you know what it takes to get it right. And with increasing government’s funding, you have the power and resources to act.
So, thank you for always engaging with me, thank you for the time you spend delivering for your communities.
We gain so much by working together, and I hope really hope, and I’m sure we can keep up that partnership.