Rail franchises operators & contracts

27.02.18

RIA: Government underestimating UK rail value by whopping £25bn

The government could be underestimating the value of the rail industry in Britain by £25bn, figures released today by the Rail Industry Association (RIA) indicate.

In total, the industry generates around £36bn for the UK annually – more than food, drink and tobacco manufacturing, and more than the chemical and pharmaceutical industries.

Studies completed by Oxford Economics and published by the RIA show that the rail sector is also responsible for providing 600,000 jobs and generating £11bn in tax revenue.

RIA officials argue figures from the government underestimate the number of people employed by more than 300,000 and list the industry value as £10.4bn, significantly less than the total put forward by the organisation.

Its chief executive, Darren Caplan, commented: “The implications of this report are clear. The UK rail system should not be seen just as a vital mode of travel – connecting businesses, friends and family, and visitors to the UK – but also as a key industry for the economy in its own right.

“We urge the government to consider and use the findings of this report when developing its Industrial Strategy agenda, negotiating trade deals with other countries once we have left the EU, and when promoting our world-class exports offering overseas generally.”

Other organisations in the rail industry have welcomed the report as proof that the government needs to look more closely at supporting rail.

Stephen Joseph, Campaign for Better Transport’s chief executive, explained: “Rail is a low-carbon and highly-skilled industry.

“This new research highlights just how big a contribution it makes to the economy. There is a very strong case for the government to build on this strength with a long-term investment strategy, including support for electrification, to promote rail as a pillar of the UK economy.”

The report itself was completed between the RIA, Oxford Economics and 10 other rail sector partners. It is likely to be released soon through the RIA’s website.

Top image: Network Rail

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

Comments

Lutz   27/02/2018 at 13:52

Where this analysis falls down is that the industry's economy is largely subsidised through tax revenues and so does not stand on a par with the other industries quoted above. Eliminate costs and provide a service without Government subsidy before making such a claim.

Davjd   27/02/2018 at 18:34

Yes, and? Government subsidies approximately cover the operating profits and break-out payments for private train operators.

Add your comment

 

rail technology magazine tv

more videos >

latest rail news

Network Rail’s subsidiary secures systems integrator contract in Australia

14/12/2018Network Rail’s subsidiary secures systems integrator contract in Australia

The Australian subsidiary of Network Rail Consulting has been named as the systems integrator for the Digital Systems Program in Sydney by Transp... more >
Infrastructure giant Amey to be sold to private equity firm in new year

14/12/2018Infrastructure giant Amey to be sold to private equity firm in new year

 Infrastructure giant Amey is expected to be sold to a private equity firm in the new year, according to reports. The Financial Times b... more >
HS2 and Crossrail suppliers admit to running ‘illegal cartel’ for 7 years

14/12/2018HS2 and Crossrail suppliers admit to running ‘illegal cartel’ for 7 years

Two UK rail suppliers to major projects such as HS1, HS2, and Crossrail have admitted to operating an illegal cartel for almost seven years with ... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the... more > more last word articles >

'the sleepers' daily blog

Spotlight on Coventry Very Light Rail

27/11/2018Spotlight on Coventry Very Light Rail

Olivia Brown, business development officer at Warwick Manufacturing Group (WMG), an academic department of the University of Warwick, outlines the four exciting projects currently taking place as part of the Coventry Very Light Rail (VLR)  programme. In RTM’s June/July issue, readers were introduced to the concept of VLR and th... more >
read more blog posts from 'the sleeper' >

comment

Passenger safety: Respect the edge

27/11/2018Passenger safety: Respect the edge

Claire Coward, communications lead at the RSSB, discusses her organisation’s latest passenger safety campaign. Incidents at the platfo... more >
Night Tube: The twilight economy

27/11/2018Night Tube: The twilight economy

Dr David Lutton, executive director of economy and tax at London First, argues that the capital’s night-time economy is just starting its j... more >
Monitoring the performance of earthworks

27/11/2018Monitoring the performance of earthworks

Dr Joel Smethurst, associate professor in geotechnical engineering, and Professor William Powrie, professor of geotechnical engineering, both of ... more >
Introducing iPort

20/11/2018Introducing iPort

Steve Freeman, managing director of iPort Rail, introduces the UK’s newest inland freight terminal. The UK’s newest inland rail ... more >

rail industry focus

View all News

interviews

HS2 train race: making the case

20/11/2018HS2 train race: making the case

Bombardier and Hitachi’s commitment to providing the best HS2 rolling stock pitch to the government was signified with the launch of their ... more >