Latest Rail News

24.02.17

Rail industry made and spent £18.4bn in 2015-16, ORR reveals

ORR has this week published its UK rail industry financial information 2015-16, which has revealed the expenditure and income sources of the whole rail industry for the past year.

The publication was started in 2010-11 and aims to increase accountability and transparency for customers as well as members of the industry by publishing a detailed review of industry finance, which supports the recommendations that the Transport Select Committee made back in its 2012 ‘Rail 2020’ report.

Significant findings this year included that the rail industry had a combined income of £18.4bn, of which just over half came from fares, whilst government funding made up 36% of the total income.

This is an increase from last year, when ORR reported that the income of the industry was £13.5bn, of which a far bigger 71% was made up of passenger fares and government funding came to about 25% of total funding.

However, this increase may be owed mainly to changes in the report, as it increased its scope to include freight operators, open access operators, HS1, rolling stock companies and Northern Ireland Railways. Eurotunnel, HS2 and Crossrail were excluded from this year’s publication.

The report also found that fares from franchised TOCs had increased by 3.4%, or £0.3bn, since 2014-15, largely due to a boost of almost 4% in passenger journeys.

ORR also announced that Network Rail’s gross income for the year came to £6.6bn, and that £4.3bn of this was made up of government funding – around 65% of the infrastructure owner’s funding.

Rail industry expenditure was also £18.4bn, with 35% spent on passenger train operations, whilst 32% was spent on Network Rail (including operations, maintenance, renewals and borrowing costs), and 19% went to payments to government.

In 2014-15, industry expenditure was £13.6bn, of which 46% went to Network rail whilst cost to franchised train operators made up £8.7bn of expenditure.

Expenditure for the infrastructure owner was also found to be a total of £7bn, and that operating costs and maintenance costs accounted for most of their costs at 40%, whilst an additional £2.4bn was spent of amortisation of capital expenditure.

 Have you got a story to tell? Would you like to become an RTM columnist? If so, click here.

Comments

There are no comments. Why not be the first?

Add your comment

 

related

Rail industry Focus

  • 15/11/2019A workforce which reflects society

    Loraine Martins MBE, Director of Diversity and Inclusion at Network Rail, joins us in the studio for the third episode of our RTM podcast, talking at length about her role and how it came about...
  • 02/11/2019Monica Barbosa: Women In Rail

    Director of business development and communications at Xrail, Monica Barbosa, thinks women are missing out on exciting opportunities because the lack of gender diversity in the rail industry.
View all News

Comment

The challenge of completing Crossrail

05/07/2019The challenge of completing Crossrail

With a new plan now in place to deliver Crossrail, Hedley Ayres, National Audit Office manager, major projects and programmes, takes a look at ho... more >
Preparing the industry to deliver trains for the future

04/07/2019Preparing the industry to deliver trains for the future

The move to decarbonise the rail network involves shifting to cleaner modes of traction by 2050. David Clarke, technical director at the Railway ... more >

'the sleepers' blog

Maximising efficiency requires investment in data, but it’s rewards for rail could be extensive

14/11/2019Maximising efficiency requires investment in data, but it’s rewards for rail could be extensive

Rail Technology Magazine’s Matt Roberts explains the significant role data can play within the future development of the rail industry. Standing as a cornerstone of the UK transport network, the rail industry is forever striving to in... more >
read more blog posts from 'the sleeper' >

Interviews

Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

24/06/2019Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

Andrew Haines, the Chief Executive of Network Rail, has told the Today programme on Radio 4's BBC’s flagship news programme that he would not rule out his organisation issuing future r... more >
Malcolm Holmes, executive director of West Midlands Rail Executive, announced as TCR Midlands speaker in Birmingham

24/06/2019Malcolm Holmes, executive director of West Midlands Rail Executive, announced as TCR Midlands speaker in Birmingham

Ahead of his appearance, Malcolm Holmes spoke with Rail Technology Magazine about what key leaders in the industry were doing to improve rail in the Midlands. He said: “It’s very... more >