Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Jürgen Maier, former chief executive of Siemens UK, has taken up a role chairing a new expert review of UK rail and transport infrastructure for the Labour party.
The review, set up by shadow transport secretary Louise Haigh, will explore how transport network delivery can be better managed to boost jobs, boost value for money and drive investment and economic growth.
The proceed comes after months of turbulence in the British rail industry after Rishi Sunak’s Conservative government scrapped the northern leg of its flagship high-speed rail line, HS2, from Birmingham to Manchester.
Rail manufacturers have expressed fears over a lack of new orders from cash-strapped train companies. Japanese conglomerate Hitachi recently took a £65mn writedown on its Newton Aycliffe plant, while French transport equipment maker Alstom warned it had six weeks of work left at its plant in Derby.
“There is no doubt that poor quality rail infrastructure is holding Britain back, hampering productivity, and deterring business investment,” Maier said on Wednesday.
“I welcome Labour’s focus on learning lessons from the last decade . . . the more all political parties focus on the practical solutions needed, the better for this country.”
Maier is currently chair of Digital Catapult and vice-chair of the Northern Powerhouse Partnership, which works to rebalance the UK’s regional economy. He was chief executive of industrial conglomerate Siemens UK from 2014 to 2019.
Labour has promised to nationalise the railways should it win the next general election but only through a gradual process as existing franchises come to an end. The party has refused to pledge to reversing the cuts to the HS2 northern route.
“Labour are serious about learning the lessons from the staggering failure of the last decade and will draw from the brightest and best from around the world,” said Haigh.
She said the review would consider why the UK has one of the highest rail construction costs in the world. The first meeting of the review panel is set to take place on Thursday and it aims to deliver its interim findings within six to eight weeks.
The new panel includes other senior figures from British industry including Allan Cook, former chair of HS2 and Atkins; Laurent Troger, former chief executive of Bombardier Transportation, Henri Murison, chief executive of the Northern Powerhouse Partnership; and Nicola Smith, head of economics at the Trades Union Congress.
The review will make recommendations on changes to the planning system, the capacity of public bodies to deliver infrastructure and unlock growth, delivery of value for money and strengthening the supply chain.
The creation of the rail review is part of a wider programme of outreach to the business world by Labour leader Sir Keir Starmer, who has pledged to forge partnerships with the corporate world as he moves his party to the centre ground.
Last week Labour announced a new City panel made up of 10 advisers including chairs of some of the biggest companies in the financial services industry.
Rachel Reeves, shadow chancellor, is also chairing regular meetings of a Labour “British Infrastructure Council”, attended by chief executives of some of Britain’s biggest financial services companies, which is exploring new ways of financing infrastructure schemes.
