McMahon: Rail is key to “kickstarting the economy”

Post-pandemic, the country must build back better than it was before. And rail can help in kickstarting the economy.

That was the message from Shadow Transport Secretary

Jim McMahon on February 25. Delivering his Beyond COVID: Labour’s vision for rail speech at the virtual National Rail Recovery Conference, organised by

RAIL, McMahon told delegates this meant making sure that investment is really seen through.

“We cannot have announcement after announcement from the Government, and then reannouncements, without seeing the money fall through onto the ground so people can see it and feel it.

“We cannot allow deliverers of investment to really feel the brunt of cuts to their own budget in the way we’ve seen with Transport for the North, which has had not just a cut to its core budget, but also a significant cut to its smart ticketing project that would have meant travel was far better across the north of England.”

McMahon also criticised cuts to Network Rail’s spending:

“We’re six months on now from Stonehaven, where we’ve seen the human cost of the landslide and the impact of climate change.

“It’s really important that we don’t let the foot off the gas when it comes to investment, to make sure that we protect our key infrastructure, so frankly, it beggars belief that the Government has cut the budget for NR by £1 billion.

“And we’re very concerned that that cut won’t fall evenly across the whole of the UK.”

McMahon (pictured) said that Labour wants to make sure that region is not set against region: “Of course, we want to see every region reach its full potential, but we have to reflect that had the north of England received the same investment as London and the South East over the last decade, it would be £66bn better off. £66bn better off on key transport infrastructure, to make sure those economies can thrive, and that people are connected to opportunities where at the moment they feel disconnected.

“That has to be put right. And it won’t happen if the Government essentially places the north of England where it has to choose between the eastern leg of HS2 [West Midlands-East Midlands-Leeds] or Northern Powerhouse Rail.”

McMahon openly questioned the lack of support for open access operators and struggling cross-Channel operator Eurostar.

“We also need to make sure that we’re building from strong foundations, so what is the Government doing to provide support to our open access providers?

“What is it doing to make sure, in partnership with the French Government, that Eurostar are supported - not just for themselves but also for the economy, to get the stations back open in Kent and to guarantee the payment to HS1 as well.

“We need to make sure that in the recovery that’s going to come, that our foundation is the strongest it can be.”

McMahon said that while we hear regularly of ‘headline projects’ including HS2 and the Heathrow Third Runway, what people really care about is the day-to-day experience.

“Is the bus on time? Will the tram be affordable? Is the rail network reliable or does it have a timetable that doesn’t work? Can I get from one form of transport to another affordably and easily, or is it fragmented and disconnected in a way that using that form of transport just isn’t an option?”

McMahon said that Labour plans to use its time in opposition not just to hold the Government to account, but also to plan for the future. Ahead of the expected

2024 General Election, it will be setting out its ambition for the country to recover and rebuild, and to not return to business as usual.

“We are very clear that we want to work in partnership with the sector and make sure we’re really hard-wiring that physical investment with social investment,” he said.

“And I strongly believe, and I have seen with my own eyes through visits and conference discussions, that rail has a really important role in this.

“When we look at the supply chain it supports, look at the apprenticeships it supports, the quality of careers it supports, but also the return to the overall economy, it is without doubt one of the easiest ways to not just get this country moving, but really kick-starting our economic recovery.”