The creation of a new public sector body to oversee and celebrate Britain’s railways has been delayed.

Transport Secretary Anne-Marie Trevelyan told MPs that the Government has axed its plan to introduce a Transport Bill during the current parliamentary session because legislation to deal with the energy crisis is being prioritised.

The Bill included the establishment of Great British Railways (GBR), which will absorb state-owned infrastructure management company Network Rail and issue contracts to private companies to run trains.

GBR’s creation also included creating a new central headquarters which will act as the heart of the rail network and will provide strategic direction for the running of GBR, as well as bringing a number of highly skilled jobs to the area.

Read more:  Work starts on redevelopment of Darlington Railway Station

Newcastle has been shortlisted to become the home of the British railways, beating a number of other towns and cities in the North East.

Bids had been submitted for Darlington and Stockton to get the headquarters as well as Durham, but all were rejected by the Government.

With the approach of the bicentenary of the Stockton and Darlington Railway, it had been hoped one of the towns would be shortlisted due to their connection with the birth of the railway. Rail enthusiast and broadcaster Michael Portillo was even enlisted to support the Stockton scheme.

The Northern Echo: Broadcaster Michael Portillo and Stockton MP Matt VickersBroadcaster Michael Portillo and Stockton MP Matt Vickers (Image: The Northern Echo)

The body was due to begin operating in early 2024 but that timetable has been scrapped.

Asked about the Transport Bill by the Commons’ Transport Select Committee, Ms Trevelyan said: “The challenges of things like the energy legislation we’ve got to bring in and various others has meant that we have lost the opportunity to have that in this third session.

“What we are continuing to pitch for will be what I would call a narrow Bill around the future of transport technologies, the legislation around things like e-scooters.”

She added: “That bigger piece around rail transformation in particular, we will need to look at in the fourth session.”

She insisted: “I only see this as a few months’ delay”.

The formation of GBR was a key policy of her predecessor, Grant Shapps, who claimed it will focus on “bringing everything together and running a much more efficient service for passengers”.

Birmingham, Crewe, Derby and Doncaster have also been shortlisted to host the headquarters of GBR.

Rachael Maskell, Labour MP for York Central, warned of a grave future for the city if the plans are not realised.

She said: “Abandoning the establishment of the GBR HQ would be devastating to the rail industry across York. York has invested significantly in this relocation projects as we knew that if it were to be located outside of the city, it would result in job losses yet in York, it would consolidate our already significant rail sector.”

It comes as a council leader warned Liz Truss’s promise to deliver long-awaited rail upgrades that would bring a massive boost to the North East now have “absolutely no credibility”.

The Prime Minister pledged during the Conservative leadership campaign that she would build Northern Powerhouse Rail in full, a £25 billion move that would overturn Boris Johnson’s decision to scale back the huge scheme.

That commitment offered hope to North East decision-makers who have been desperate to secure much-needed upgrades to the East Coast Main Line and a reopening of the mothballed Leamside Line, projects seen as critical to the future of the region.

But, after a series of humiliating U-turns that have shredded Ms Truss’ agenda, Gateshead Council leader Martin Gannon aired fears on Tuesday that her rail pledge now holds no weight.

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