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| Is chugging along enough after railway upgrades put on pause? | Is chugging along enough after railway upgrades put on pause? |
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| It all sounded different before the election. The chancellor, George Osborne, had promised a northern powerhouse, connecting the cities of the north into one booming economic entity, forged by fast transport connections. The electrification of the TransPennine rail route between Manchester and Leeds and the Midland mainline from Sheffield were two big transport goodies around the corner. And why stop there? Even the prime minister popped up to Leeds to propose HS3, a sequel to the HS2 high-speed rail line, with a vague but exciting promise of new cross-Pennine rail links. | It all sounded different before the election. The chancellor, George Osborne, had promised a northern powerhouse, connecting the cities of the north into one booming economic entity, forged by fast transport connections. The electrification of the TransPennine rail route between Manchester and Leeds and the Midland mainline from Sheffield were two big transport goodies around the corner. And why stop there? Even the prime minister popped up to Leeds to propose HS3, a sequel to the HS2 high-speed rail line, with a vague but exciting promise of new cross-Pennine rail links. |
| Now, on the packed Friday evening train doing the slow traverse from Manchester Piccadilly to Leeds, scepticism is rife. It is standing room only, and little of that, and most commuters do not appear optimistic they will find a seat. A little more than a month has elapsed since the government announced that its manifesto pledges for vital rail upgrades would not, after all, be delivered. Passengers asked about the shelved electrification plans mainly shrug their shoulders, as if they never expected them to go ahead in the first place. One says bluntly: “George Osborne spoke a load of rubbish. I work in London so I know how fast the trains can be. You’ll never get fast trains up here.” | Now, on the packed Friday evening train doing the slow traverse from Manchester Piccadilly to Leeds, scepticism is rife. It is standing room only, and little of that, and most commuters do not appear optimistic they will find a seat. A little more than a month has elapsed since the government announced that its manifesto pledges for vital rail upgrades would not, after all, be delivered. Passengers asked about the shelved electrification plans mainly shrug their shoulders, as if they never expected them to go ahead in the first place. One says bluntly: “George Osborne spoke a load of rubbish. I work in London so I know how fast the trains can be. You’ll never get fast trains up here.” |
| It can feel that way on the 43-mile journey between two of the great cities of the north, a relatively short distance that still takes an hour on trains barely chugging faster than the steam locomotives that would have passed in the days when the Huddersfield mills were booming. Trains from another era still ply the north, from the hated Pacers – banished by ministerial decree from 2020 – to the 50-year old carriages and diesel locomotives that once hauled nuclear waste and have now resurfaced on Cumbria’s passenger services. A passenger, who gave his name only as Simon, said he was struggling to get used to the commute. “It would make such a difference to me if they electrified the train line. Having a shorter journey would be great. After all, I pay enough for my ticket.” | It can feel that way on the 43-mile journey between two of the great cities of the north, a relatively short distance that still takes an hour on trains barely chugging faster than the steam locomotives that would have passed in the days when the Huddersfield mills were booming. Trains from another era still ply the north, from the hated Pacers – banished by ministerial decree from 2020 – to the 50-year old carriages and diesel locomotives that once hauled nuclear waste and have now resurfaced on Cumbria’s passenger services. A passenger, who gave his name only as Simon, said he was struggling to get used to the commute. “It would make such a difference to me if they electrified the train line. Having a shorter journey would be great. After all, I pay enough for my ticket.” |
| Such sentiments will be familiar to the transport secretary, Patrick McLoughlin, who intervened to overrule civil servants’ doubts over the costs of scrapping Pacers, and was doubtless genuinely dismayed at the bad tidings he had to unveil in June. McLoughlin told the Commons there would be a “pause” to the upgrades. This was due to a growing tally of missed targets and overspend on works being carried out elsewhere by Network Rail, the government-owned operator of Britain’s rail infrastructure. | Such sentiments will be familiar to the transport secretary, Patrick McLoughlin, who intervened to overrule civil servants’ doubts over the costs of scrapping Pacers, and was doubtless genuinely dismayed at the bad tidings he had to unveil in June. McLoughlin told the Commons there would be a “pause” to the upgrades. This was due to a growing tally of missed targets and overspend on works being carried out elsewhere by Network Rail, the government-owned operator of Britain’s rail infrastructure. |
| He also announced two reviews: one, by the new chairman, Peter Hendy, to establish just what Network Rail could feasibly still deliver in its abortive five-year plan. Hendy, due to report in September, may yet surprise everyone by restoring parts of the paused programmes to the schedule. More likely, he will identify further schemes whose prospects appear unrealistic before 2019, given the problems of supply, overspend and caps on borrowing. East West rail, which plans to reopen links around Oxford to establish a route from East Anglia across the home counties, is one project that may join the Midland mainline and TransPennine schemes in the sidings. | He also announced two reviews: one, by the new chairman, Peter Hendy, to establish just what Network Rail could feasibly still deliver in its abortive five-year plan. Hendy, due to report in September, may yet surprise everyone by restoring parts of the paused programmes to the schedule. More likely, he will identify further schemes whose prospects appear unrealistic before 2019, given the problems of supply, overspend and caps on borrowing. East West rail, which plans to reopen links around Oxford to establish a route from East Anglia across the home counties, is one project that may join the Midland mainline and TransPennine schemes in the sidings. |
| While Hendy considers the art of the possible, Dame Colette Bowe, a board member at the Department for Transport, will be examining the folly of botched planning. The remit of this second review, according to McLoughlin, is “to look at lessons learned and to make recommendations for better investment planning in future”, widely read as identifying who got what wrong. | While Hendy considers the art of the possible, Dame Colette Bowe, a board member at the Department for Transport, will be examining the folly of botched planning. The remit of this second review, according to McLoughlin, is “to look at lessons learned and to make recommendations for better investment planning in future”, widely read as identifying who got what wrong. |
| Network Rail itself will obviously top that list, its problems underlined this week when it was fined £2m by the rail regulator for mishandling upgrades at London Bridge station. Speaking in June, McLoughlin was clear that Network Rail was making too many errors across the board, even as he acknowledged that the engineering challenge was fiendishly difficult. “But that is no excuse. All of these problems could and should have been foreseen by Network Rail.” While the chief executive, Mark Carne, only came into the organisation after a £38.5bn, five-year works programme was rubberstamped, he may not escape the flak. Some have questioned the wisdom of appointing a boss from outside the rail industry – and the recent influx of rail veterans onto the board has reinforced the impression that the former oil industry executive needed support. | Network Rail itself will obviously top that list, its problems underlined this week when it was fined £2m by the rail regulator for mishandling upgrades at London Bridge station. Speaking in June, McLoughlin was clear that Network Rail was making too many errors across the board, even as he acknowledged that the engineering challenge was fiendishly difficult. “But that is no excuse. All of these problems could and should have been foreseen by Network Rail.” While the chief executive, Mark Carne, only came into the organisation after a £38.5bn, five-year works programme was rubberstamped, he may not escape the flak. Some have questioned the wisdom of appointing a boss from outside the rail industry – and the recent influx of rail veterans onto the board has reinforced the impression that the former oil industry executive needed support. |
| But Network Rail believes there are other candidates for a Bowe lashing, to ensure the blame is shared around. Few expect to see ministers lambasted by a DfT board member, but McLoughlin had, however well briefed, signed up to a cost adjustment mechanism that was liable to raise the bill considerably once schemes were properly assessed. And after that first became apparent in summer 2014, notably on the increasing cost of electrification of the Great Western route, the government remained keen to promote and promise more rail schemes. Network Rail’s undoing was in part its willingness to accede to an ever growing list of demands, rather than turn down the happy flow of investment. | But Network Rail believes there are other candidates for a Bowe lashing, to ensure the blame is shared around. Few expect to see ministers lambasted by a DfT board member, but McLoughlin had, however well briefed, signed up to a cost adjustment mechanism that was liable to raise the bill considerably once schemes were properly assessed. And after that first became apparent in summer 2014, notably on the increasing cost of electrification of the Great Western route, the government remained keen to promote and promise more rail schemes. Network Rail’s undoing was in part its willingness to accede to an ever growing list of demands, rather than turn down the happy flow of investment. |
| Fire may also be turned on the regulator, the Office of Rail and Road, which was tasked with monitoring spending and progress of the funding plan. Shortly before imposing the London Bridge fine, it issued another warning letter to Network Rail, detailing its concerns in a scathing list, from inadequate governance to low productivity and weak assurances over safety. But the ORR was also tasked with adjudicating on the £38.5bn budget back in 2013. At the time it ruled that the whole programme could be delivered for £2bn less than the state was prepared to cough up, despite Network Rail’s furious protests. Given what has since emerged, that looks optimistic or ill-judged. While the ORR did warn of missed targets and some overspend, some feel it did not sound the klaxon loudly enough. However, in the latest letter – ORR’s turn in what one industry leader calls “the desperate rounds of arse-covering” – the regulator sets out how it has raised concerns since July 2014. | Fire may also be turned on the regulator, the Office of Rail and Road, which was tasked with monitoring spending and progress of the funding plan. Shortly before imposing the London Bridge fine, it issued another warning letter to Network Rail, detailing its concerns in a scathing list, from inadequate governance to low productivity and weak assurances over safety. But the ORR was also tasked with adjudicating on the £38.5bn budget back in 2013. At the time it ruled that the whole programme could be delivered for £2bn less than the state was prepared to cough up, despite Network Rail’s furious protests. Given what has since emerged, that looks optimistic or ill-judged. While the ORR did warn of missed targets and some overspend, some feel it did not sound the klaxon loudly enough. However, in the latest letter – ORR’s turn in what one industry leader calls “the desperate rounds of arse-covering” – the regulator sets out how it has raised concerns since July 2014. |
| Nonetheless, the regulator’s words will again force Network Rail to examine its practices, despite its supporters pointing to the numerous projects it has successfully delivered – from swiftly rescuing the battered Dawlish line in south-west England to rebuilding major stations – and the labour of armies of workers through nights and holidays to maintain a railway used more intensively than ever. | Nonetheless, the regulator’s words will again force Network Rail to examine its practices, despite its supporters pointing to the numerous projects it has successfully delivered – from swiftly rescuing the battered Dawlish line in south-west England to rebuilding major stations – and the labour of armies of workers through nights and holidays to maintain a railway used more intensively than ever. |
| David Higgins, the ex-Network Rail chief now leading HS2, has named another guilty party – the Office for National Statistics. Their decision to reclassify Network Rail as a public body, putting its debt on the state balance sheet, has ultimately had profound consequences because it has given the rail company less flexibility in terms of funding. He told the Guardian that instead of talking of a crisis in the railways, “people need to stop and identify that as a cause”. | David Higgins, the ex-Network Rail chief now leading HS2, has named another guilty party – the Office for National Statistics. Their decision to reclassify Network Rail as a public body, putting its debt on the state balance sheet, has ultimately had profound consequences because it has given the rail company less flexibility in terms of funding. He told the Guardian that instead of talking of a crisis in the railways, “people need to stop and identify that as a cause”. |
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| Certainly, it focused the mind of ministers – and the Treasury – on money that was being spent. But it shouldn’t exculpate Network Rail, which had been living it large on a credit card that has now racked up £38bn of debt. Until the debt reclassification last September, a fantasy budget might not have been an insurmountable problem for Network Rail, as it could borrow at will and smooth over poor planning. Now, under Treasury scrutiny, the flexibility has gone. | Certainly, it focused the mind of ministers – and the Treasury – on money that was being spent. But it shouldn’t exculpate Network Rail, which had been living it large on a credit card that has now racked up £38bn of debt. Until the debt reclassification last September, a fantasy budget might not have been an insurmountable problem for Network Rail, as it could borrow at will and smooth over poor planning. Now, under Treasury scrutiny, the flexibility has gone. |
| A third review, led by Nicola Shaw, the chief executive of HS1, which runs from London St Pancras to the Channel Tunnel, will have until next spring to examine the structures and financing of Network Rail. There has been talk of breaking up the business, which echoes Carne’s own vision for creating eight distinct regional entities. There are also reports of a desire within Network Rail to sell a stake in the company to the private sector. | A third review, led by Nicola Shaw, the chief executive of HS1, which runs from London St Pancras to the Channel Tunnel, will have until next spring to examine the structures and financing of Network Rail. There has been talk of breaking up the business, which echoes Carne’s own vision for creating eight distinct regional entities. There are also reports of a desire within Network Rail to sell a stake in the company to the private sector. |
| Meanwhile, Carne still hopes to bring forward his vision for a railway transformed by digital technology, which would overhaul signalling and allow more trains onto the network. The limit of Network Rail’s ambitions may become clearer after the autumn’s reviews are concluded, with some uncomfortable reading guaranteed. But the industry will have fresh successes to point to, including the opening of the redeveloped Birmingham New Street and in particular the new Scottish Borders Railway. | Meanwhile, Carne still hopes to bring forward his vision for a railway transformed by digital technology, which would overhaul signalling and allow more trains onto the network. The limit of Network Rail’s ambitions may become clearer after the autumn’s reviews are concluded, with some uncomfortable reading guaranteed. But the industry will have fresh successes to point to, including the opening of the redeveloped Birmingham New Street and in particular the new Scottish Borders Railway. |
| Despite the indefinite pause to one set of promised improvements in the north, others have been delivered, including electrification of tracks between Liverpool and Manchester this year. At the sharp end, a train guard at Manchester Victoria confirms: “People have been much happier with the electrified line. I wish we had more of them – it would certainly make my job a lot easier.” About the ropier, overcrowded, old diesel trains, he says: “Sometimes I can’t look passengers in the eye because I know how much money they’ve paid for their ticket.” | Despite the indefinite pause to one set of promised improvements in the north, others have been delivered, including electrification of tracks between Liverpool and Manchester this year. At the sharp end, a train guard at Manchester Victoria confirms: “People have been much happier with the electrified line. I wish we had more of them – it would certainly make my job a lot easier.” About the ropier, overcrowded, old diesel trains, he says: “Sometimes I can’t look passengers in the eye because I know how much money they’ve paid for their ticket.” |