This afternoon brought Rachel Reeves’ second Budget as Chancellor of the Exchequer, with some references to the future of the rail industry in the UK.
One of the biggest of these will be a one-year freeze of regulated rail fares, which is the first time that this has happened in three decades and will save rail users an average of £300 per year (on more expensive routes). This move comes at a time when the Railways Bill has been introduced to parliament, and Great British Railways will look to reform rail ticketing and deliver improved value for money.
Rachel Reeves, Chancellor of the Exchequer
The Chancellor also referred to a number of key rail projects across the country, as part of plans to boost infrastructure nationwide. As part of the Budget, Reeves reinforced the commitment to delivering investment for the 3 kilometre Docklands Light Railway extension to Thamesmead, the Midlands Rail Hub, and the Transpennine Route Upgrade.
Alongside these, it was confirmed that the government be committed to supporting the Northern Growth Corridor and, as such, Northern Powerhouse Rail.
Whilst there were some mentions for rail in the budget, there was more focus on tax and welfare, as well as other infrastructure. In response to the Budget, Railway Industry Association Chief Executive Darren Caplan said:
“With rail making quite a few headlines recently, and passengers will welcome the freeze on rail fares, today’s Budget contained limited new measures affecting the railway industry and rail businesses.
“The Railway Industry Association and our members – many of whom have experienced difficult times this year commercially – will welcome the Government’s recognition of the value of rail investment to boosting the UK’s growth and productivity, and its commitment to funding major rail projects, including the recently-announced Docklands Light Railway extension, and continued support for Transpennine Route Upgrade, HS2, East West Rail and Midlands Rail Hub. RIA members around the country will be involved in delivering all of these schemes.
“However, we would like to have seen in this Budget more of the Government’s plans to encourage innovative funding models in rail – whether private or ‘third party’ investment, more direction on its long term strategy for rail, and an update announcement on Northern Powerhouse Rail, a major scheme which up until recently had general cross-party political support. We urge the Government to give more clarity on these issues, to both boost jobs, GVA and Treasury revenues to the benefit of UK plc, and also to ensure the rail supply sector can play its part to efficiently and cost-effectively deliver world-class UK transport infrastructure in the future.”
Image credit: iStock and UK Parliament
