The new Government consider the country's transport network to be key to boosting the UK's economy. Background briefing notes to the King's Speech, delivered on 17 July, state that "a modern transport network is vital to kickstarting economic growth."[1] Given the important role of transport in connecting communities, workplaces and businesses, it is clear why investment in this sector could be an important catalyst for economic growth. Key stakeholders of the sector are standing by to see how the new Government's promises will translate into a pipeline of opportunities.
The King's Speech included three Bills which specifically cover rail. Two of these Bills tackle the long-standing issue of rail reform. The Passenger Railway Services (Public Ownership) Bill, introduced to Parliament on 18 July, aims to deliver Labour's commitment to bring the railways under government control, ensuring that a public-sector rail operator is the default approach rather than a last resort. The Railways Bill aims to create the "directing mind", Great British Railways, for management of the network, delivery of passenger services, delivery of ticket reform and promoting the use of rail freight. In relation to the third rail bill, the High Speed Rail (Crewe to Manchester) Bill, the Government have expressly stated that they are not reversing the decision to cancel the second phase of HS2. Instead, this Bill will be repurposed to provide powers to deliver rail projects which improve rail networks in the north of England, including in Manchester and the surrounding area.[2]
The Government has also emphasised its commitments to allow local leaders greater control over bus networks through the Better Buses Bill. This Bill aims to improve bus networks by increasing the number of local communities which have access to bus franchising powers outside London, speeding up the implementation of franchising arrangements and lifting the ban on municipal ownership of bus companies. [3] Louise Haigh, the new Secretary of State for Transport, has shown early enthusiasm for the Government's bus policy commitments, having visited Manchester during her first days in office to investigate how local communities can take inspiration from Manchester's "Bee Network", the first bus franchise in England outside London.[4]
Building on Labour's transport manifesto commitments, the Secretary of State has set out 5 strategic priorities for the Department for Transport, which include delivering greener transport and improving integration among transport networks, in addition to delivering rail reform, improving bus services and transforming infrastructure to tackle regional inequality.[5]
Regarding greener transport, the electrification of transport has been hovering on the national agenda for some time. Manufacturers and owners of electric vehicles, as well as developers and operators of related charging infrastructure, will be keen to see how the new Government plans to deliver its manifesto commitment to accelerate the roll out of electric vehicle charging infrastructure, confronting the chicken-and-egg issue of the interdependence of electric vehicle ownership and access to charging infrastructure. Combining the Government's commitments to increase bus services with their commitment to greener transport, the new administration may present opportunities for investment in electric buses and depot electrification works.
The Labour Government is not limiting its reform to trains and buses. In the field of greener aviation, the Sustainable Aviation Fuel (Revenue Support Mechanism) Bill seeks to assist with decarbonisation of the aviation sector and to generate activity in the sustainable aviation fuel sector ("SAF") in the UK, including the construction and operation of SAF plants.
In many cases, reliable and fit-for-purpose transport infrastructure will firmly underpin the delivery of improvements to transport services. Where existing infrastructure requires upgrading or new infrastructure is required, we will need collaboration among industries to deliver this essential infrastructure. The proposed Planning and Infrastructure Bill aims to remove barriers to delivery of critical infrastructure, which will be welcome in this context.
DACB has an experienced and knowledgeable infrastructure and projects team and acts for a number of bus and rail operators. For further information on how we can help please contact Rachel Gibson and Abigail Harvey.
[1] Prime Minister's Office, 10 Downing Street (July 2024). King's Speech 2024: background briefing notes, p28, available at https://www.gov.uk/government/publications/kings-speech-2024-background-briefing-notes (accessed 24 July 2024)
[2] Prime Minister's Office, 10 Downing Street (July 2024). King's Speech 2024: background briefing notes, available at https://www.gov.uk/government/publications/kings-speech-2024-background-briefing-notes (accessed 24 July 2024)
[3] Prime Minister's Office, 10 Downing Street (July 2024). King's Speech 2024: background briefing notes, available at https://www.gov.uk/government/publications/kings-speech-2024-background-briefing-notes (accessed 24 July 2024)
[4] Department for Transport and The Rt Hon Louise Haigh MP (July 2024). Transport Secretary kickstarts 'bus revolution' as she promises to support local leaders to deliver better buses up and down the country available at https://www.gov.uk/government/news/transport-secretary-kickstarts-bus-revolution-as-she-promises-to-support-local-leaders-to-deliver-better-buses-up-and-down-the-country (accessed 24 July 2024).
[5] Department for Transport, Lord Hendy of Richmond Hill CBE and The Rt Hon Louise Haigh MP (July 2024). Transport Secretary sets out 5 key priorities to deliver the biggest overhaul to transport in a generation, available at https://www.gov.uk/government/news/transport-secretary-sets-out-5-key-priorities-to-deliver-the-biggest-overhaul-to-transport-in-a-generation (accessed 24 July 2024).
