Labour sets out plans to reform UK transport delivery

Labour’s Election manifesto backs infrastructure but promises major reforms in delivery and reallocation of funding.

Antony Oliver
13 April 2015

Twitter FacebookLinkedIn

Print

Topics 

Business

Attachments 

Britain Can Be Better - Labour Manifesto 2015

A future Labour government this week promised a major reform of the transport sector as part of its plan to defend the public again the rising cost of travel.

While Labour retains its support for the £50bn HS2 rail project, on the current national network reform of the rail sector is set to review franchise arrangements, freeze fares and see creation of a new National Rail body. The party also said it would divert cash from road schemes to fund the changes.

“Labour will deliver a fully funded rail fares freeze for one year, a strict cap on every route for any future fare rises, and a new legal right for passengers will be created to access the cheapest ticket for their journey,” Labour leader Ed Miliband said, delivering the manifesto in Manchester. 

“Labour will reform our transport system on order to provide more public control and put the public interest first,” Labour election manifesto.

Overall Labour’s “Britain can be better” manifesto maintained its post-election commitment to investment in infrastructure today with a raft of manifesto pledges designed to place the sector at the heart of future economic growth across the UK.

The manifesto retains overarching support for UK high speed rail investment, however Labour again raises the spectre of project review for the £50bn HS2 project.

“We will continue to support the construction of High Speed Two, but keep costs down, and take action to improve and expand rail links across the North to boost its regional economies" the manifesto said. 

The plans appear to put Highways England’s fully funded programme of highways improvements at risk after Miliband pledged to defend rail passengers against future fare rises using funds previously allocated to develop economically “uncertain” road schemes

The pledge will freeze rail fares next year and a place a strict fare rise cap  on every route, funded by delays to road schemes such as the A27 on the south coast and A358 the West Country

“The cost, of just over £200M, will be fully funded by switching spending within the existing transport budget from delaying road projects on the A27 and A358 for which the economic case is still uncertain,” he said.

“Building world-class infrastructure will be crucial to fostering economic growth. We will create certainty for investors by taking a long-term approach to the major investment decisions facing the country,” Labour Manifesto

Change are also planned in rail franchising with a pledge to enable public sector operators to be allowed to challenge private companies on a level playing field to run rail services, clearly drawing on the lessons from the recent East Coast Mainline franchise.

This comes as part of a major overhaul of the UK’s rails sector, as predicted by former transport minister Tony McNulty during a recent Railway Civil Engineers’ Association debate last month.

“Labour will reform our transport system on order to provide more public control and put the public interest first,” says the manifesto.

“We will review the franchising process as a priority to put in place a new system and avoid a repeat of the Conservative’s franchising fiasco. A new national Rail body will oversee and plan for the railways and give rail users a greater say in how trains operate. We will legislate so that a public sector operator is allowed to take on lines and challenge the private sector operating company on a level playing field.”

Armitt Commission

Labour also retains support for the Armitt Commission to speed up delivery of infrastructure. 

“Building world-class infrastructure will be crucial to fostering economic growth. We will create certainty for investors by taking a long-term approach to the major investment decisions facing the country,” it says.

“We will set up an independent National Infrastructure Commission to assess how best to meet Britain’s infrastructure needs. It will make recommendations to government, monitor their implementation, and hold government to account. These measures and our long-term approach will help reinforce Britain’s status as one of the world’s greatest centres of science and engineering."

“I am ready, ready to put an end to the tired old idea that as long as we look after the rich and powerful we will all be OK" Ed Miliband

Labour also promised to make “a swift decision on expanding airport capacity in London and the South East, balancing the need for growth and the environmental impact” following the Davies Review. 

It also pledged to “support long-term investment in strategic roads, address the neglect of local roads, and promote cycling”.

Miliband again highlighted his desire to balances the nation’s books without slashing public spending and investment to the bone.

“I am ready to put an end to the tired old idea that as long as we look after the rich and powerful we will all be OK. Ready to build a country that works for working people once again. Ready to put into practice the truth that it is only when working people succeed, that Britain succeeds,” he said.

Energy reform

The long-standing pledge to freeze gas and electricity bills until 2017, ensuring that they can only fall not rise, is also retained, with a promise to invest in low carbon technology to boost the number of jobs in the green sector and decarbonise energy production.

“We will work to make Britain a world leader in low carbon technologies over the next decade, creating a million additional green jobs. This aim will be supported by ambitious domestic carbon reduction targets, including a legal target to remove the carbon from our electricity supply by 2030, and a major drive for energy efficiency,” says the manifesto.

“For onshore unconventional oil and gas, we will establish a robust environmental and regulatory regime before extraction can take place."

A timetable will also be establishes to give the Green Investment Bank additional powers to invest in green businesses and technology and an Energy Security Board will plan and deliver the UK’s energy mix including renewables, nuclear, green gas, carbon capture and storage, and clean coal.

“Scientific discovery and technological innovation will drive economic advancement this century. We will introduce a new long-term funding policy framework for science and innovation, providing the stability and continuity that our companies and research institutes need to succeed,” it says pledging commitment to fracking.

“For onshore unconventional oil and gas, we will establish a robust environmental and regulatory regime before extraction can take place. And to safeguard the future of the offshore oil and gas industry, we will provide a long-term strategy for the industry, including more certainty on tax rates and making the most of the potential for carbon storage.”

On housing the manifesto retains its commitment to build a minimum of 200,000 new homes a year. 

Fiscal devolution

Devolution is also central to Labour’s plans with “the biggest devolution of power to our English city and county regions in a hundred years with an English Devolution Act” promised to transfer £30bn of funding to city and county regions, along with new powers over economic development, skills, employment, housing, and business support. 

"We will enable city and county regions to retain 100 per cent of additional business rates raised from growth in their area,” Labour manifesto.

“This will include control over local transport systems so that in future, local bodies can integrate trains, buses, trams and cycling into a single network. We will enable city and county regions to retain 100 per cent of additional business rates raised from growth in their area,” says the manifesto.

“Fair funding will be restored across England, alongside longer term multi-year budgets, so that local authorities can plan ahead on the basis of need in their area and protect vital services. And an English Regional Cabinet Committee, chaired by the Prime Minister, will be convened regularly, attended by the relevant Secretaries of State and leaders of our major city and county regions.”

In return for greater devolution of funding and responsibility, we will establish local Public Accounts Committees, so that every pound spent by local bodies creates value for money for local taxpayers.