Fury as report shows Midland Main Line electrification snub was cost-driven

The decision to cancel electrification of the Midland Main Line was about saving money and had nothing to do with the advent or claimed efficiency of bi-mode trains, according to local business leaders.

A report from the National Audit Office has caused fury among East Midlands representatives – and the Shadow Transport Secretary.

Andy McDonald, MP for Middlesborough and Shadow Secretary of State for Transport, tweeted: “I’ve written to the Transport Secretary Chris Grayling demanding that he explain why he made false claims about the decision to cancel promised rail electrification, and why he and Theresa May kept the cuts secret for months, not making them public until after the General Election.”

In the letter, McDonald says: “The report highlights the decision to cancel the electrification of the Midland Main Line was made in March [2017], but not announced until July. Why did it take five months to announce the decision.

“I think you should clarify the reasons for the cancellation of the electrification projects.”

In July last year, the Department for Transport has announced plans for new bi-mode trains for passengers travelling to and from London through the East Midlands – effectively scrapping plans to electrify the lines.

The government said passengers would get faster and more comfortable journeys on trains which would be powered by a combination of electric and diesel.

The government said this would mean that “disruptive” electrification works would no longer be needed.

Transport Secretary Chris Grayling said at the time: “Passengers expect and deserve high quality rail services and we are committed to using the best available technology for each part of the network, delivering significant benefits for those who use our railways.”

However, says the East Midlands Chamber, the decision has been revealed to be all about money.

Chris Hobson, director of policy at East Midlands Chamber, said: “The report only underlines what we’ve said all along, that when it comes to infrastructure investment successive Governments have viewed the East Midlands as being politically expendable, consciously placing us at the back of the pack.

“According to the Government’s own figures, the East Midlands receives only 60% of the average per capita investment in infrastructure compared with the rest of the country. This is something that we are lobbying to redress, calling for 100% average per capita by 2020.

“Last summer Transport Secretary Chris Grayling cancelled the planned and fully-budgeted £1bn electrification of the Midland Main Line and told us we would get a better service from heavier, slower, more expensive, dirtier and more damaging to the rail network bi-mode trains, which it’s now confirmed didn’t even exist when Mr Grayling made his announcement.

“Moreover, the short-term savings will result in longer-terms costs, associated with maintenance, greater pollution and the lost economic benefits that a speedier, more reliable service with enhanced capacity can bring.

“This short-termism brought on by political expediency has to end. The East Midlands is the biggest contributor to the national economy outside of the Southeast and we urge Government to reconfirm electrification of the Midland Main Line, all the way to north of Sheffield where it will eventually link up with HS2.

“We need to show the rest of the world that as a region we are most definitely open for business and ready to trade on global markets in a post-Brexit economy.”

A statement from the National Audit Office late last week said: “While the availability of alternative means of delivering passenger benefits was important, the major reason for cancellation was affordability.

“The Department decided to cancel projects because Network Rail could no longer deliver its 2014-19 investment programme within the available funding. Network Rail found that the cost to complete planned works exceeded the available funding by £2.5bn.

“In late 2016, the Department and Network Rail found that plans to raise and retain £1.8bn to reduce the funding shortfall, through asset sales, were unachievable. They decided to cancel projects to help address the  shortfall.

“The Department estimated that cancelling these three projects would save a maximum of £105m in 2014-19 rail investment period, but would avert £1.3bn of spending in the following 2019-24 period.”