With Angela Rayner, the deputy prime minister, at the helm of the renamed Ministry of Housing Communities and Local Government, devolution was always going to be a major feature of the Labour Government's domestic agenda.
The English Devolution and Community Empowerment Bill, presented to Parliament this month after a year of excited speculation, likewise always promised to be a flagship piece of legislation. It was clear from the outset – a change in Government would lead to a change in how we are governed, with wide-ranging powers being transferred from Westminster to the nations and regions. And in no sector could that step change be more consequential than transport.
Devolving decisions – and funding
Ministers' thinking, that giving local leaders more control over transport budgets and planning decisions will lead to better decision making and more direct accountability for projects, finally brings the Government in line with transport planners who have been calling for a less centralised approach for a long time.
And, the Government has put its money where its mouth is on this, recently announcing over £15 billion worth of funding for local transport projects that will be administered by Metro Mayors. The long-awaited English Devolution Bill set out plans for expanding the number of Metro Mayors across England, clearly spelling out to local authorities that if they want money for infrastructure projects, they will need to get on board with local government reform.
Buses, bikes and the push for local control
Something of an inspiration to Ministers looking to rollout devolution, echoes of Greater Manchester's Bee Network can also be found in the Bus Services Bill, which is currently making its way through the House of Commons. The legislation will make it easier for local authorities to franchise bus services but also introduces important duties on operators to train staff on women's safety.
Similarly, the micromobility sector will receive its regulation on a local level, with Clause 23 of the English Devolution and Community Empowerment Bill making strategic and local authorities the licensing bodies for e-bike and micromobility schemes.
Rail renationalised: a central pillar of reform
But localism is not the only story, with the unification of track and train under one nationalised Great British Railways standing in stark contrast to the approach taken to buses and micromobility. The reversal of several decades of privatisation is perhaps the most significant transport policy of the Labour Government, aimed at ending fragmentation and failure and providing a simplified, 'customer-first' model.
The recent HS2 reset reinforces the impression that rail is the key pillar of the Government's transport strategy, with the reset aiming to get HS2 on track to boost growth and provide better journeys.
Airport growth, climate continuity
Aviation has emerged as a cornerstone of the Government's economic growth strategy. In January, Chancellor Rachel Reeves formally backed Heathrow's controversial third runway as part of Labour's flagship drive to "kickstart economic growth". The decision came after intense lobbying from Heathrow's CEO, who had warned the project would be scrapped without government support by the end of 2025. Heathrow is now expected to submit its masterplan proposals this summer, followed by the complex Development Consent Order process that could take over a year, with the runway targeted to be operational by the mid-2030s. Meanwhile, the Government has maintained the Conservative's sustainable aviation fuel mandate, requiring 2% SAF usage from 2025, rising to 10% by 2030 and 22% by 2040, demonstrating continuity on decarbonisation even as it embraces airport expansion.
A nod to drivers
Motorists haven't been ignored, however, with an electric car grant worth £650 million designed to boost the take-up of electric cars complementing earlier policy announcements like the investment in the Lower Thames Crossing and changes to how the Government funds local authorities filling in potholes to encourage more repairs.
With traditional solutions featuring as much, if not more, than green and emerging technologies in the Government's announcements so far, it is clear Ministers are taking a realistic approach to the nation's transport needs. The balancing act between enhancing devolution in some areas while re-introducing centralised oversight elsewhere represents a bespoke strategy – non-ideological and informed by the lessons of the past more than anything else.
Pragmatism under pressure
While the Government's intentions seem obvious – it wants to appear as pragmatic, pro-investment and pro-infrastructure – the worsening economic picture and fraying discipline in the Parliamentary Labour Party could yet jeopardise its ambitious but expensive plans. The next twelve months will be crucial for the Government as it seeks to use transport and infrastructure as a catalyst for economic renewal, but with fewer and fewer tools to make that happen.
