Mayors welcome £6.9bn local transport boost – but warned of HS2 ‘sting in the tail’
England’s regional mayors have welcomed a £6.9bn spending boost for local transport – but they are also being warned of a “massive sting in the tail” to come from Chancellor Rishi Sunak.
At next week’s budget and spending review, Mr Sunak is expected to announce £5.7bn will be put into transport settlements for city regions, as well as £1.2bn of new funding for bus services.
The Treasury is promising the cash will boost productivity through train and station upgrades and the expansion of tram networks in cities outside of London.
The funding appears to be a victory for Greater Manchester mayor Andy Burnham, who has been campaigning for government money to help create a London-style transport service for his city region.
However, a former government infrastructure tsar has accused Mr Sunak of putting “the good news before the bad news” as they predicted the chancellor would also scrap a major part of the HS2 rail project and scale down other big infrastructure schemes.
As part of the City Region Sustainable Transport Settlements, £1.07bn will be allocated for projects in Greater Manchester, £830m for West Yorkshire, £570m for South Yorkshire, £1.05bn for the West Midlands, £310m for Tees Valley, £540m for the West of England, and £710m for the Liverpool city region.
Mr Burnham welcomed an “important first step” towards a London-style transport system for Greater Manchester and said the government was “listening to the case” that his city region was making.
But the Labour politician added that “infrastructure investment alone will not make levelling up feel real to the people of Greater Manchester – that will only happen when the frequency and coverage of bus services are increased and fares are lowered to London levels”.
Greater Manchester mayor Andy Burnham has been campaigning for a London-style transport network
Andy Street, the Conservative mayor of the West Midlands, hailed the “largest single transport sum we have ever received” and promised “some truly game-changing schemes” such as more Metro lines and train stations, new bus routes and electric vehicle charging points.
His fellow Tory regional politician, Tees Valley mayor Ben Houchen, said the cash was “another example” of the government’s commitment to being “serious about levelling up”.
He promised that “every part of our transport network in the region will be touched, with our critical practical schemes such as major station renovation and road improvements sitting alongside funding for more innovative projects like low-emission vehicles and smart traffic lights”.
The Treasury said the local settlements will enable projects such as new carriages for Greater Manchester’s Metrolink, an expansion of tram networks in South Yorkshire and the West Midlands, and battery packs for Merseyrail trains to extend its network.
And Mr Sunak’s department is also promising the £1.2bn pot for bus services will improve infrastructure, fares and services outside of London through the delivery of integrated fares and ticketing, as well as extra services and new bus priority measures to speed up journeys.
Those places benefiting from the money will be selected in the coming months, according to the Treasury.
“Great cities need great transport and that is why we’re investing billions to improve connections in our city regions as we level up opportunities across the country,” Mr Sunak said.
“There is no reason why somebody working in the North and Midlands should have to wait several times longer for their bus or train to arrive in the morning compared to a commuter in the capital.
“This transport revolution will help redress that imbalance as we modernise our local transport networks so they are fit for our great cities and those people who live and work in them.”
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However, former Labour transport secretary Lord Adonis – who went on to lead the UK National Infrastructure Commission under David Cameron and Theresa May – forecast that Mr Sunak’s announcement of local transport funding would come before the scrapping of the eastern leg of HS2 between Birmingham and Leeds.
He told Sky News: “The truth is the government is announcing a pretty good deal for local transport because they think all politics is local and having bus schemes, local train and local tram schemes is going to be popular.
“And I welcome that because we do need much better local transport and we particularly need it in the Midlands and the North so it’s more like London.
“However, what they’re not announcing now is the massive sting in the tail which is the cancellation of the eastern leg of HS2 and a big scaling down of the project to link up the northern cities from Liverpool and Manchester, through to Bradford and Leeds and then Newcastle in the north of England.”
Lord Adonis added the “big, strategic, backbone” transport infrastructure schemes were “just as important” as local schemes “if we’re going to level up this country properly”.
Labour’s shadow transport secretary Jim McMahon said: “If ministers were serious about ensuring towns and cities of the North are better connected, they’d be delivering to HS2 to Leeds and Northern Powerhouse Rail.
“Both these projects are critical to addressing the climate crisis and transforming the economies of the North and Midlands.
“If ministers go back on their word, communities will feel rightly betrayed.”
Earlier this month, Transport Secretary Grant Shapps signalled the eastern leg of HS2 could be scrapped in favour of other transport spending as he spoke of how the government should “not blindly follow some plan invented 15 to 20 years ago which no longer benefits people”.
People who are fit to work but do not accept job offers will have their benefits taken away after 12 months, the prime minister has pledged.
Outlining his plans to reform the welfare system if the Conservatives win the next general election, Rishi Sunak said “unemployment support should be a safety net, never a choice” as he promised to “make sure that hard work is always rewarded”.
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Mr Sunak said his government would be “more ambitious about helping people back to work and more honest about the risk of over-medicalising the everyday challenges and worries of life” by introducing a raft of measures in the next parliament. They include:
• Removing benefits after 12 months for those deemed fit for work but who do not comply with conditions set by their work coach – such as accepting a job offer
• Tightening the work capability assessment so those with less severe conditions will be expected to seek employment
• A review of the fit note system to focus on what someone can do, to be carried out by independent assessors rather than GPs
• Changes to the rules so someone working less than half of a full-time week will have to look for more work
• A consultation on PIP to look at eligibility changes and targeted support – such as offering talking therapies instead of cash payments
• The introduction of a new fraud bill to treat benefit fraud like tax fraud, with new powers to make seizures and arrests.
He insisted the changes were not about making the benefits system “less generous”, adding: “I’m not prepared to balance the books on the backs of the most vulnerable.
“Instead, the critical questions are about eligibility, about who should be entitled to support and what kind of supports best matches their needs.”
But Labour said it was the Tories’ handling of the NHS that had left people “locked out” of work, and a disabled charity called the measures “dangerous”.
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The latest data from the Office for National Statistics (ONS) shows 9.4 million people aged between 16 and 64 were “economically inactive”, with over 2.8 million citing long-term sickness as the reason.
Mr Sunak said 850,000 of them had been signed off since the COVID pandemic and half of those on long-term sickness said they had depression, with the biggest growth area being young people.
He also claimed the total being spent on benefits for people of working age with a disability or health condition had increased by almost two-thirds since the pandemic to £69bn – more than the entire budget for schools or policing.
“I will never dismiss or downplay the illnesses people have,” said the prime minister. “Anyone who has suffered mental ill health or had family and friends who have know these conditions are real and they matter.
“But just as it would be wrong to dismiss this growing trend, so it would be wrong to merely sit back and accept it because it’s too hard, too controversial, or for fear of causing offence.”
Rishi Sunak during his speech on welfare reform. Pic: PA
The prime minister said he knew critics would accuse him of “lacking compassion”, but he insisted “the exact opposite is true”, adding: “There is nothing compassionate about leaving a generation of young people to sit in the dark before a flickering screen, watching as their dreams slip further from reach every passing day.
“And there is nothing fair about expecting taxpayers to support those who could work but choose not to.
“It doesn’t have to be like this. We can change. We must change.”
But Labour said the “root cause of economic activity” was down to the Tories’ failure on the health service, with record NHS waiting lists hitting people’s ability to get back in the workplace.
Acting shadow work and pensions secretary Alison McGovern said: “After 14 years of Tory misery, Rishi Sunak has set out his failed government’s appalling record for Britain: a record number of people locked out of work due to long-term sickness and an unsustainable spiralling benefits bill.
“Rather than a proper plan to get Britain working, all we heard today were sweeping questions and reheated proposals without any concrete answers.”
Liberal Democrat leader Sir Ed Davey called it “a desperate speech from a prime minister mired in sleaze and scandal”, adding: “Rishi Sunak is attempting to blame the British people for his own government’s failures on the economy and the NHS and it simply won’t wash.”
Meanwhile, disability charity Scope said the measures were a “full-on assault on disabled people”, adding they were “dangerous and risk leaving disabled people destitute”.
James Taylor, director of strategy at the charity, said calls were already “pouring in” to their helpline with people concerned about the impact on them, adding: “Sanctions and ending claims will only heap more misery on people at the sharp end of our cost of living crisis.”
The House of Lords has delayed the passing of the government’s Rwanda bill until next week – in a blow to Rishi Sunak’s attempts to get planes off the ground deporting illegal migrants to the country.
MPs overturned Tuesday’s attempts by the House of Lords to dilute the plan – but peers have now put forward even more changes to the proposed new law.
It is now expected that the Commons will consider the changes on Monday next week, dashing No 10’s hopes to get it through today.
Downing Street has been unwilling to concede any ground on the areas that peers are trying to amend, including on the treatment of people who served with or for the British armed forces abroad.
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No 10 had set its sights on passing the legislation this week as part of its plans to get planes in the air in the spring.
The Safety of Rwanda (Asylum and Immigration) Bill was tabled last year after the Supreme Court ruled the previous scheme to deport asylum seekers who arrived illegally in the UK was unlawful.
The current bill aims to declare Rwanda safe and not allow courts to consider the safety of the nation during appeals.
This is being done based on a new treaty agreed between the UK government and the government in Rwanda.
Speaking earlier on Wednesday, the prime minister’s spokesperson ruled out doing a deal on any of these changes. “We are not considering concessions,” they said.
“We believe the bill as it stands is the right bill and the quickest way to get flights off the ground.”
Read more:
Beth Rigby analysis: Plenty more showdowns to come as blame game begins
What are the latest amendments suggested by the Lords?
Of the four amendments added on Tuesday, three were tabled by Labour peers and one by a crossbencher.
The proposed changes sought to:
• ensure the bill complies with domestic and international law;
• that Rwanda would not be declared safe until a report was completed;
• that appeals based on safety would be allowed;
• and that exemptions would be allowed for people who served with or for the British armed forces.
Peers want to insist on the amendments about people who assisted the UK’s armed forces, and a report advising on the safety of Rwanda, in particular.
The government was defeated on the first by 245 votes to 208 – a majority of 37, and the second by 247 votes to 195 – a majority of 52.
Labour and crossbench peers – those who do not associate with a political party – worked together to outvote the Conservatives.
A government source told Sky News: “We wanted to get it done today, but it shows Labour for their true colours.”
Responding to the latest defeats, Northern Ireland minister Steve Baker told Sky News that he was “extremely disappointed” with the delays.
He denied the government had “slammed the door” on people like interpreters in Afghanistan who worked with UK armed forces.
But Mr Baker said people wanting to come to the UK who had served with British armed forces had to go through the Ministry of Defence.
“They shouldn’t be travelling with people smugglers illegally across the channel – and that’s what we’ve got to break,” he said.
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Approach to military interpreters ‘shameful’ – Labour
The amendment on people who helped the armed forces has been at the centre of a heated debate – with the government saying it is waiting for a report on the Afghan Relocations and Assistance Policy (ARAP) before setting out its steps.
But Labour’s shadow home secretary Yvette Cooper said: “Tory MPs just voted to insist that Afghan interpreters who served British armed forces can be sent to Rwanda.
“A scheme which costs £2m per asylum seeker. A £500m plus scheme for less than 1% of asylum seekers. Which now includes those who worked with our troops
“Shameful and shambolic.”
Read more:
Rigby: Rwanda win not automatic victory for PM
Cost of Rwanda scheme could soar to £500m
Johnny Mercer, a former soldier and the government’s veterans minister, replied: “My team have worked night and day to find permanent accommodation for circa 25,000 Afghans who the UK have provided sanctuary to, without you lifting a finger to help.
“We want them to use safe routes, not undertake lethal channel crossings. Your concern is fake.”
Politics
Rwanda plan blame game begins over latest delays – with plenty more showdowns to come for Rishi Sunak
This was the week it was meant to be done.
Having forced the House of Commons to vote down the Lords’ amendments to the prime minister’s flagship illegal immigration bill three times, peers would typically have bowed out of the battle this time around and passed the Rwanda bill.
Instead, they sought to amend the legislation again.
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There is obvious frustration in government, with one senior figure saying: “We wanted to get it done today, but it shows Labour for their true colours.”
The Rwanda bill now comes back to the Commons next week, and could finally be passed on Monday.
All the while, the clock is ticking down on the prime minister‘s promise to get flights away by the end of spring.
With that timetable already in doubt, at least this ping pong can help ministers pin this on peers should that deadline be missed.
But there is also huge frustration amongst some MPs with Number 10.
‘We need to get it through’
Many are asking why the government didn’t just table late night sittings and force Lords to sit into the night to ram through the legislation.
Tory MP Rehman Chishti spoke for many colleagues when he told me he didn’t understand why the whips hadn’t chosen this course.
“I think the programme motion could easily have ensured that we had a vote tomorrow because at the end of day the public want us to get on and get it done. Labour have delayed, dithered, delayed. We’ve got a plan, but we need to get it through,” he said.
“If you would have asked me, I would have put it in tomorrow and I would have a vote on it. And therefore we get those planes off and make sure that this policy delivers what it needs to be delivering, which is deterrence.”
Another senior minister told me it was “clear” to them that these were “delaying tactics because they know the version of the policy doesn’t work and they want more time and to put off the day of reckoning”.
Read more:
Government ‘operationalising’ Rwanda flights
Rwanda enforcement officers told all leave is cancelled
The UK’s Rwanda bill has been delayed again. Pic: AP
Labour ‘terrified it will work’
As Labour blames the government for refusing to compromise on amendments, and “going home” instead of looking again at the bill this evening, the government blames Labour for delaying the bill because – to quote minister Steve Baker – “they are terrified it will work”.
There is talk that had the government accepted the amendment to exempt Afghans who served alongside UK forces from deportation to Rwanda, the Lords might have passed the bill.
Labour had received an assurance from the Home Office that this amendment, tabled by former Labour defence secretary Des Browne, was going to be accepted – only for it then to be blocked.
For all the drama and irritation, it is likely that the prime minister will still have his moment.
At some point, the House of Lords will have to cave. Unelected peers cannot keep ignoring the will of the Commons.
But the question then is whether he can assuage the frustration of voters who are watching the small boats still coming, with the most crossings in a single day this year – 534 people – happening this week.
‘Another failed thing they promised’
In our Sky News election target town of Cleethorpes, part of a key bellwether seat in the next general election, voters we spoke to are sceptical the government will deliver the flights at all.
One resident told us: “They tell you what they think you want to hear but when it comes down to it, they don’t deliver that.”
Another said: “No one’s gone to Rwanda. They get on the plane, and they take them off. So that’s another failed thing they’ve promised.”
And really that’s the rub of it – the prime minister will get this legislation passed.
Then the challenge is to get those planes off the ground. Anything less won’t be acceptable.
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But with even some of his own backbenchers believing the policy won’t work, a parliamentary win is only the end of the beginning.
The next question is will he, if he has to, not just take on the Lords, but take on the European courts – and those in his own cabinet – and if necessary ignore court rulings to get flights away.
There are plenty more showdowns to come.
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