Hull Trains to get extra capacity after Labour strikes £500m deal to keep Hitachi train factory open

The deal, announced yesterday by Sir Keir Starmer, will see the factory build 14 new trains, some of which will run on FirstGroup’s Lumo and Hull Trains lines.

There is an option for an additional £460 million investment, to build a further 13 five-care trains.

The trains will be completed in late 2027 and FirstGroup chief executive Graham Sutherland confirmed this would add extra capacity on Hull Trains’ route to London, via Beverley, Howden and Doncaster.

He said: “The introduction of our new service between London and Carmarthen, and the extra capacity on Lumo and Hull Trains, will significantly increase our open access portfolio over the next few years, with further expansion possible should our recent applications be successful.

“The new trains, to be manufactured for us in County Durham by Hitachi, will support UK manufacturing and offer customers more choice as they consider affordable, environmentally friendly modes of travel in the future, and we are pleased to be taking them forward.

“We know that growth and innovation are key for the future of the railway sector and are committed to working with government and all our partners to provide competitive, sustainable and improved services.”

The deal was a welcome boost for the Prime Minister, who travelled up to the plant with new Transport Secretary Heidi Alexander.

Prior to the announcement, Sir Keir has announced his six “milestones” which formed the new Government’s plan for change.

He claimed these will “inject ambition back into Britain”.

Uncertainty had surrounded the future of the Newton Aycliffe plant and the 700 people employed there due to declining orders.

Before the election, Sir Keir visited the factory to accuse the then-government of leaving Britain’s rail manufacturing sector “teetering on the brink”.

At the time, he said: “Communities and local businesses across the North East will be hit hard if our proud manufacturing base here is not preserved.”

Returning to County Durham yesterday, the Prime Minister said: “Our plan for change has set out ambitious milestones that will deliver real improvement in people’s lives – raising living standards across the country.

“That means taking a grown-up approach to business and using the heft of government to solve problems, not create them.

“Getting people in the room to have the hard conversations which have been ducked for years.

“That approach is paying off. Not only has it saved jobs, but it has given business the certainty and stability they need to thrive.”

He said the announcement was a “case in point”.

“We helped secure a deal that will help protect hundreds of jobs, keep this business ticking, and improve rail services,” he explained.

”I made a promise to the workforce of the Newton Aycliffe factory and today, I’m delivering on that promise.”

The deal will see FirstGroup lease 14 new trains, a total of 70 cars, for use on its new Carmarthen-London route and other Hull Trains and East Coast Mainline services.

Ms Alexander, who replaced Louise Haigh as Transport Secretary last week, said: “This Government is determined to rebuild our broken railways – which includes taking action to create a stable investment environment for our critical UK rail manufacturers.

“This deal will bring significant benefits to the North East, and we’re committed to working closely with the entire sector so that it can continue to support jobs and growth across the country and help deliver a railway fit for the 21st century.”

Jim Brewin, UK and Ireland chief director for Hitachi Rail, said the contract was “a positive step forward” and “just recognition for the hard work and patience of our teams”.

“We look forward to once again delivering for Hull Trains and Lumo passengers who will benefit further from our award-winning British built trains,” he said.

He also thanked local MPs and North East Mayor Kim McGuinness, saying they had “worked tirelessly in support of this private sector investment”.

Ms McGuinness hailed the deal, saying it was “great news for Christmas for workers at Hitachi in Newton Aycliffe”.

While Malcolm Brown, chief executive of Angel Trains, added: “This is a major milestone for the UK rail industry.

“In less than three months we have delivered over £270m of investment that will bring millions more passengers onto the rail network, connect key regional centres across the UK, secure crucial manufacturing jobs and breathe new life into local economies.

“This is the first announcement of its kind in six years but our ambitions don’t stop here - this milestone represents the beginning of a new and exciting journey, which will see Angel Trains play a leading role in the green transition of our rail infrastructure.”