Construction of HS2 north of Birmingham to Crewe is to be delayed by two years, in a bid to contain the costs of the project. Transport secretary Mark Harper said £40 billion will be invested in ‘transformational’ transport schemes over the next two financial years around the country, which would help to ‘level up’ local communities and fulfill one of the Government’s five priorities to enlarge the economy. He added that this includes continued investment in HS2 from London Euston to Manchester. However, ‘in recognition of inflationary pressures and to help balance the nation’s books, the next two years will be used to rephase construction and optimise future delivery of Phase 2a between Birmingham and Crewe so this is done in the most cost-effective way’. He continued: ‘The Government will take the time to ensure an affordable and deliverable design at Euston, with a view to delivering the station alongside high-speed infrastructure to Manchester, while the High Speed Rail (Crewe-Manchester) Bill continues through Parliament.’ Before Mr Harper made his announcement, there had been speculation that he could have been set to announce changes to Phase 1, between Old Oak Common and Birmingham, but construction on this section will continue. Transport for the North reacted by calling for the complete London to Manchester scheme to go ahead. Its chairman, the former transport secretary Lord McLoughlin, said: ‘This is a disappointing announcement. But I was reassured by the transport secretary that we are still getting HS2 to Manchester, and the recommitment to NPR [Northern Powerhouse Rail] is welcome. ‘However, it needs to be understood whether or not these cost savings can be realised while still achieving the same desired outcome and conditional outputs. The government needs to avoid being penny wise and pound foolish, as delays don’t necessarily lead to savings, and in fact can drive costs upwards. ‘Nevertheless, the political leaders of the North who sit on our Board have made their collective position very clear – we must transform the North by building both HS2 and NPR in full.’ The Railway Industry Association, which represents hundreds of companies in the supply chain, warned that delaying  the Birmingham-Crewe section could be an ‘inefficient use of taxpayers’ money.’ RIA chief executive Darren Caplan said: ‘Chancellor Jeremy Hunt announced just last November that he was committed to delivering HS2. This was welcome news following the scrapping of both the Eastern Leg from Leeds to Birmingham, and the cancellation of the Golborne Link, to enable high speed trains to get from the Northern Leg of HS2 to Scotland. ‘So it is clearly disappointing to hear of this delay, which seems to prioritise short-termism over a structured, long-term strategy for what is Europe’s biggest infrastructure project. The delay postpones the immense benefits the project is set to deliver for the country, including extra capacity, more economic growth, improved connectivity – driving levelling up – and hundreds of thousands of jobs specifically in the Midlands and the North, and also to other parts of the UK more widely. ‘This stop-start approach to a project is an inefficient use of taxpayers’ money, and could ultimately drive the project's costs up, which is the opposite of what the Government is trying to do. We strongly urge the Government to push on with delivering the full HS2 scheme, including the Eastern Leg and the Golborne Link, or its replacement, as soon as possible.’ The Labour Party was also critical. Shadow transport secretary Louise Haigh said: ‘Tens of thousands of jobs, and billions in economic growth are dependent on this project. The North is yet again being asked to pay the price for staggering Conservative failure. Conservative chaos and chronic indecision is holding back jobs, growth and costing the taxpayer. This is the biggest project in Europe and delays pile costs up in the long-run. Ministers now need to come clean on precisely how much their indecision will cost taxpayers and the North.’ The private operators’ lobbying organisation Rail Partners echoed the cost concerns voiced by other critics. Chief executive Andy Bagnall said: ‘While inflationary pressures make infrastructure projects more challenging, it is critical for Britain's economy and meeting net zero targets that large sections of HS2 are not delayed which will ultimately increase the overall cost.’

The Rail Delivery Group has invited the RMT to fresh talks today, following the announcement that strikes at Network Rail had suspended following a new pay offer. The terms of the offer have now been published by the union. Network Rail is offering a salary rise of between 14.4 per cent for the lowest paid grades to 9.2 per cent for the highest, plus an additional 1.1 per cent on basic earnings and increased back pay, which will be paid as a lump sum. It does not depend on any changes to working practices. Meanwhile, the RDG invited the RMT to new talks today on condition that strikes at train operators next week are cancelled, but the union has declined to do this. Last night, the RDG said: ‘We have invited the RMT leadership to meet tomorrow for further talks and have made clear we are always open to dialogue. However we have also made clear to that meaningful progress can only be made if they remove the threat of strikes hanging over our passengers before it is too late to avoid disruption. We urge the RMT leadership to engage with us in good faith and resolve this dispute.’ As things stand the RMT is still set to stage walkouts at 14 English train operators on 16, 18 and 30 March, and also on 1 April.

The RMT said last night that it is suspending all industrial action by its Network Rail members after a new offer was received. No further details have been given, although the RMT has promised that ‘Further updates will be given on all aspects of the national rail dispute in the coming days.’ The Rail Delivery Group has reacted by calling for a ballot of RMT members working for train operators. The RDG said: ‘The RMT leadership's decision to put Network Rail's deal to its membership is a welcome development, but train operating staff will rightly be asking why their union continues to deny them the opportunity to have their say on our equivalent offer. ‘Instead of inflicting more lost pay on its members and disruption to our passengers, we are calling on the union to call off their strikes and meet us for urgent talks to resolve this dispute.’ At the moment, strikes affecting 14 train operators are still set to be called on 16, 18 and 30 March, and also on 1 April. The RDG has previously warned that national pay negotiations could be suspended unless the ‘best and final’ offer was put to its members in a ballot. Chief employers’ negotiator Tim Shoveller had told Railnews: ‘We spent January working with the RMT and were confident that the package agreed would be accepted by another 4000 RMT members which would take us over the 50 per cent acceptance threshold, but this was not put to members to vote on. The fact the RMT continues to refuse to put this to the members is our biggest challenge and also for their members who want a vote and not to lose any more money.’

The Rail Delivery Group is reported to have warned the RMT that talks at national level may not continue unless the ‘best and final’ offer is put to its members in a ballot. One sticking point is the reforms the government wants to introduce, which could include the closure of most ticket offices. The RMT has insisted that any pay offers must be unconditional, and is preparing to stage fresh strikes on 16, 18 and 30 March, and also on 1 April. There will be a separate walkout affecting both RMT and ASLEF members at Transport for London on 15 March. The offer is for 5 per cent for 2022-23 and 4 per cent for 2023-4, in exchange for changed working practices. Transport secretary Mark Harper has asked the RMT to let its members consider the ‘good’ pay offer. He said he was pleased that members of the TSSA had accepted it. He continued: ‘I would urge the RMT to put the offers that they’ve had to their members and let their members make the decision, and I think they’re good offers. ‘And I think that their members ought to accept them and I hope the RMT reconsiders their decision not even to put those offers to their members. If we get those offers delivered, we can all work together to deliver a better railway for passengers.’ Chief employers’ negotiator Tim Shoveller told Railnews: ‘We spent January working with the RMT and were confident that the package agreed would be accepted by another 4000 RMT members which would take us over the 50 per cent acceptance threshold, but this was not put to members to vote on. The fact the RMT continues to refuse to put this to the members is our biggest challenge and also for their members who want a vote and not to lose any more money. ‘We thought we were on the verge of a deal three times, but the RMT Executive Committee in June, December and January, had a pattern of not passing this on to members for a vote.’ When the new strike dates were announced, RMT general secretary Mick Lynch had said: ‘Rail employers are not being given a fresh mandate by the government to offer our members a new deal on pay, conditions and job security. Therefore, our members will now take sustained and targeted industrial action over the next few months. ‘The government can settle this dispute easily by unshackling the rail companies. However, its stubborn refusal to do so will now mean more strike action and a very disruptive overtime ban. ‘Ministers cannot continue to sit on their hands hoping this dispute will go away as our members are fully prepared to fight tooth and nail for a negotiated settlement in the months ahead.’ 

Fares ++ Regulated train fares in England and Wales have risen by an average of 5.9 per cent. The increase includes a significant cap, because last July’s RPI, which is the usual basis for the annual fare changes, was 12.3 per cent. Campaigners are calling for a discount of 20 per cent on Mondays and Fridays, which have become the quietest days of the traditional five day working week since the Covid-19 pandemic. Regulated fares include season tickets and some off-peak travel on long distance services. The increase affects National Rail in England and Wales, and Transport for London services. Reopening ++ The railway between Newcastle-upon-Tyne and Ashington is set to reopen to passenger trains next year, according to transport secretary Mark Harper. Trains to Newcastle will call at six accessible stations serving Ashington, Bedlington, Blyth Bebside, Newsham, Seaton Delaval and Northumberland Park. The journey time between Newcastle and Ashington will be halved, to 35 minutes. Trains will run seven days a week. Station scheme ++ Work has started on building a new station at Ashley Down, on the northern side of Bristol. The scheme is being funded by the West of England Combined Authority, which covers Bristol, Bath, North East Somerset and South Gloucestershire. The station will be served by trains between Bristol Temple Meads annd Filton Abbey Wood. These will continue to North Filton and Henbury when these stations are opened as part of the wider MetroWest project in Greater Bristol.

The Scottish Government’s decision to end Serco’s Caledonian Sleeper franchise on 25 June has been praised by some, but criticised by others. Scottish transport minister Jenny Gilruth told the Scottish Parliament yesterday afternoon that Serco�’s contract, which began in 2015, was being terminated, because the company had tried to renegotiate the deal on new terms which the government said ‘did not represent the best value for money’. She also said the decision not to continue the Serco franchise was ‘in no way a reflection on the quality of the product that has been developed, nor on the commitment of the staff who deliver this service every day’, and promised that the rights of the Sleeper employees would be protected when they moved to a new government-owned ‘arms-length’ company. Serco said it was ‘disappointed’. The managing director of its transport business John Whitehurst said a renewed award would have ‘allowed Scotland to benefit from the expertise of our Serco Transport senior management team who understand this complex and unique hospitality-focussed train operation like no-one else, while also enabling Scottish ministers to be in complete control of the contract’. He continued: ‘Most importantly, this would have allowed the Scottish government to compare the price of such an award with that of their arm's length operator of last resort company.’ He went to claim that Serco’s management had brought ‘massive improvements to every aspect of the service for our employees, our passengers and for Scotland, despite having made significant losses on the contract’. Scottish Conservatives were also critical, pointing to the deft recovery Caledonian Sleeper had made since the pandemic. Their spokesman Graham Simpson concluded: ‘There can be no conclusion other than that this is an ideological decision. Jenny Gilruth said nothing about how this world class service can be improved under the Scottish Government.’ Rail unions are in favour of the change. The RMT said it would provide an opportunity to ‘ensure this sustainable, low carbon route between Scotland and London can be run for passengers' interests, not private profit’. The drivers’ union ASLEF also supported the move but regretted that the Sleeper had not been recombined with ScotRail, which has already been nationalised since April last year. The Caledonian Sleeper was also the last privatised rail operating contract in Britain to be described as a ‘franchise’. When Grant Shapps was transport secretary he formally abolished all the English franchises in September 2020, replacing them with alternative contracts.

Caledonian Sleeper is to pass into public ownership when the present Serco contract ends in June. Transport minister Jenny Gilruth has announced the decision to MSPs at Holyrood. She said that management of the Caledonian Sleeper will pass to an arms-length company owned by the Scottish Government on 25 June. She also criticised the pace of railway reform in England, saying that the London government is 'not going far enough', and that it was 'very unclear' when the changes proposed in the Williams-Shapps report, which recommends the creation of the guiding mind Great British Railways, will come about. She confirmed that the terms and conditions of the employment of sleeper staff would be protected when they are transferred to the state-owned company.

The future of sleeper services between Scotland and London is set to be decided today, when transport minister Jenny Gilruth makes a statement to the Scottish Parliament. The government decided last year not to extend or renew Serco’s contract to operate the Sleeper, which expires on 23 June. On 5 October Jenny Gilruth said: ‘Serco Caledonian Sleepers Limited has been advised that its proposal to rebase the Franchise Agreement with Scottish Ministers has been rejected on the grounds of not representing value for money to the public. ‘Additionally, I can confirm that a notice was served today which confirms that the Scottish Ministers will terminate the Franchise Agreement with Serco Caledonian Sleepers Limited on 25 June 2023. ‘Work is underway to determine arrangements for the continued provision of Caledonian Sleeper rail services. It is worth noting that Serco Caledonian Sleepers Limited has, broadly, delivered well and significantly improved Caledonian Sleeper services over the last 7 years.’ The statement is due after 14.00 today.

Underground strike ++ Members of the RMT are joining ASLEF in a 24-hour strike on 15 March, which is Budget day. The unions are in dispute with Transport for London over jobs, pensions and contracts. The RMT said that staff ‘deserve decent pensions, job security and good working conditions’, but TfL denied that pension changes were on the table, adding that ‘We want to make London Underground a better place to work so we urge ASLEF and the RMT to call off this damaging strike’. Most train operators on the Underground are members of ASLEF, while RMT’s membership includes station staff. Freight trains ++ Rail Partners, which lobbies on behalf of the private sector, has unveiled new research into the prospects for freight on trains. The group says if the government sets an ‘ambitious’ target to treble the amount of rail freight by 2050, the economic benefits would be almost £5.2 billion a year and replace 20 million lorry journeys annually. Rail Partners, whose members include the five largest freight operators, is quoting conclusions by the environmental data analysis consultants Aether, the Logistics Institute at the University of Hull and Railfreight Consulting. Eastern promise ++ Rail investment in the East is not keeping pace with the economic, social and environmental needs of the region according the regional partnership Transport East. It has published a report, ‘State of Rail in the East’, which highlights poor connections, particularly between Norwich and Ipswich, and Cambridge and Peterborough. It adds that trains are slow, compared with services on other main lines, leading to longer journeys. Frequencies are also poor, especially on local lines serving smaller communities, and to Stansted Airport. Rail degrees ++ Aston University is inviting former students to get in touch to help it to celebrate 50 years of transport education. Transport studies at Aston began in 1973, when the subject appeared as part of a combined honours degree course. The first transport students graduated in 1976. In 1982 the course became a degree in its own right and 40 years later the university is still teaching the transport professionals of the future.

The chief executive of the independent watchdog Transport Focus Anthony Smith is leaving after 25 years. Transport Focus was created by the 1947 Transport Act, when it was known as the Central Transport Consultative Committee. At privatisation it became the Rail Users’ Consultative Committee, and then Passenger Focus in 2006.  Its responsibilities were widened in 2014 to cover road users, including pedestrians and cyclists, and it then gained its current title. It had also begun to represent bus and tram passengers outside London in 2008.Anthony Smith has seen the last quarter century of these developments. He said: ‘This has been a very personal decision but it is time the organisation had some fresh leadership. I’m proud to have been part of the evolution and development of Transport Focus, working with the fantastic team here to make sure transport users’ voice is kept at the heart of decision-making.’Transport Focus chair Nigel Stevens added: ‘Anthony has dedicated almost 25 years to representing transport users. Transport Focus has become a trusted voice on their behalf, advocating in their interest and holding transport operators to account. The Board and colleagues are grateful for the commitment, leadership and passion Anthony has provided through a period of great change. He will leave Transport Focus in a strong position to face the challenges ahead.’