Autumn Statement - financial support for rail industry

[whole diary]

[grahame]

From Yahoo!Finance

A further #2.1 billion of taxpayers? money has been allocated to covering private train company losses during the coronavirus pandemic.

The Treasury announced the figure as part of its Department for Transport funding in Wednesday?s Spending Review.

The Government took over rail franchise agreements from train companies in March, following the collapse in demand for travel caused by the virus crisis.

This involves taxpayers covering lost fare revenue and paying a fee of up to 1.5% of pre-pandemic operating costs to keep services running.

An estimated #8 billion will be spent in the current financial year, with a further #2.1 billion allocated for 2021/22.

Robert Nisbet, director of nations and regions at the Rail Delivery Group, said: ?Given the crucial role the railways will play in the economic recovery next year, continued investment to keep services running is crucial so the network is ready when passengers return.

"Equally vital is funding to deliver the improvements that will improve journeys for passengers and support economic regrowth in communities across the country."

Pascale Robinson, campaigns officer at anti-privatisation group We Own It, said: "Splashing out even more cash in subsidies for the private rail industry is just another shockingly ill-judged decision from the Government.

"Private rail companies have already pocketed billions in bailouts in the coronavirus crisis. They shouldn?t be getting a penny more.

"This crisis has exposed the fundamental flaws in the privatisation of the railways. In the good times, private companies let the cash roll in. In the bad times, the Government steps in and pays them anyway."

I suspect the figures are correct ... but the 'cast' put onto it by the article and Mr Robinson are incorrect. With passenger numbers down to 40% (our local line) ... even further (just 13% +-1%) LNER^» (London North Eastern Railway - about) [from the TfN Community Rail Conference this morning) there is a massive shortfall - and the vast bulk of the 10 billions points is being spent to keep the railway running, and not to put into some pot for the private rail industry, who will be receiving only a limited management feed.

There have been suggestions that The Treasury would like to reduce their input by maximising revenue - careful words about fares being "affordable" (which to me does not rule out higher rises IF people could pay more).  Also suggested that they do not like part time seasons because they would loose money over them.  Special deals, carnets, etc not getting a sympathetic hearing.  All this in open public session - I didn't spot anyone from the DfT^» (Department for Transport - about) there, (but then only speakers were visible) - from rail industry professionals who are / will have been very close to what's been going on.

[grahame]

From Politics Home

The Railway Industry Association (RIA), the national trade body for the rail supply community, has responded to the Chancellor?s Spending Review.

Darren Caplan, Chief Executive, Railway Industry Association, said:

"It is positive to see the continued commitment by Government to transport infrastructure, with the announcement today of a new infrastructure bank, the publication of a National Infrastructure Strategy, the commitment to publish an updated infrastructure pipeline, and a ?4 billion fund for local improvements.

"In the coming years, investing in rail will be vital and, as outlined in our recently published ?10 reasons to invest? report, we should be confident that following the Coronavirus pandemic, passenger and freight numbers will return to the network.

"We look forward to seeing the National Infrastructure Commission?s Integrated Rail Plan on HS2^▸ (The next High Speed line(s)), Northern Powerhouse Rail, Trans Pennine Route Upgrade and Midlands Rail Hub, and the outcomes of the Williams Review into the structure of the industry.

[grahame]

RMT^▸ (National Union of Rail, Maritime & Transport Workers) Press Release

RMT Press Office:

General Secretary Mick Cash said;

"It is shameful that the government is employing a policy of divide and rule of private and public key workers, all of who have risked their lives during the pandemic.

"RMT will have no hesitation in taking strike action to deliver our members the pay rise they deserve and in supporting national coordinated action to deliver pay justice for all key workers."

I'm not really sure who counts as a private and a public sector worker at the moment, with franchises replaced emergency measures ... and with Network Rail now being considered a government agency.

[ChrisB]

Didn't the RMT^▸ (National Union of Rail, Maritime & Transport Workers) welcome the end of franchising?!!

Can't have one without other downsides.

Here's the detail - Page 41

The railways helped to build modern Britain, so as well as building HS2^▸ (The next High Speed line(s)), the government is also boosting the classic rail network. Over the remainder of Network
Rail's 5 year settlement - Control Period 6 - the government will invest ?17.5 billion to renew and upgrade the railway system, improving passenger journeys across the UK^▸ (United Kingdom). This will deliver on the NIC's recommendations by progressing the East West Railway.

In 2017, the National Infrastructure Commission outlined the transformational economic potential of the Oxford-Cambridge Arc in its report 'Partnering for Prosperity'. At Spending Review 2020 the government has reaffirmed its commitment to the area, including
additional funding to support the Budget 2020 commitments to develop a Spatial Framework to plan for long-term economic and housing growth and to explore the case for up to four Development Corporations along the route of East West Rail. This
will help to deliver sustainable economic and housing growth, supported by infrastructure, that meets the needs of local people.

The government will also deliver on its manifesto commitment to spend ?500 million to restore transport services previously lost in the Beeching cuts of the 1960s, including reopening the Ashington-Blyth line in Northumberland to passenger services, and restoring rail links to Okehampton in Devon.The government has also launched a New Ideas Fund to pay for feasibility work on proposals for new lines and stations.

Feasibility funding for the first ten schemes has been announced, which will provide a basis for decisions on further development: re-opening Meir Station in Stoke-on-Trent; the Barrow Hill line between Sheffield and Chesterfield; the Ivanhoe line between Leicester
and Burton on Trent; branch lines on the Isle of Wight (Shanklin-Ventnor and Wootton-Newport); the Abbey line between St Albans Abbey and Watford Junction; Reopening Wellington and Cullompton railway stations; Bury-Heywood-Rochdale lines; Clitheroe to Hellifield railway line; reinstatement of rail access to Devizes via a new railway station at Lydeway; and the Waterside line (Hythe-Totton).

The government will provide further feasibility funding for an additional fifteen proposals to inform decisions on further development:
reopening -
Beeston Castle and Tarporley station in Cheshire,
St. Anne's Park station in Bristol,
and Ferryhill station in County Durham;

reinstating links between
Bolton, Radcliffe, and Bury;
the Stratford-upon-Avon to Honeybourne/Worcester/Oxford line;

new stations at
Waverley in South Yorkshire and a
station in the Langport/Somerton area of Somerset;

improved services from Melton Mowbray and Falmouth;

upgrading
the South Fylde Line;
the Maid Marian line between Nottinghamshire and Derbyshire;

reinstating rail access to Cirencester;

restoring services between
Swanage and Wareham;
the South Humber rail link;
and a new link between Consett and Newcastle.

The government is also expanding the third round of the New Stations Fund to ?32 million. This will fund the opening of railway stations at
Edginswell and Thanet Parkway in Kent;
and St Clears in Carmarthenshire.

It will also provide funding to further develop proposals for stations at Haxby in York and Deeside in Flintshire.

The government is fully committed to improving connectivity between northern cities. Over the course of this year, the government has been drawing up an Integrated Rail Plan for the Midlands and the North of England, which will be published shortly. In line with the terms of reference, the Plan will ensure that Phase 2b of HS2, Northern Powerhouse Rail and other planned rail investments in the North and Midlands are scoped and delivered in an integrated way. This will bring transformational rail improvements more quickly and to more places, and will be informed by the NIC's assessment of the rail needs of the Midlands and the North.

Later - Apologies for the question marks - the software doesn't recognise '?', apostrophes & dash signs when copied & pasted

[grahame]

Later - Apologies for the question marks - the software doesn't recognise '?', apostrophes & dash signs when copied & pasted

Yeah ... I know.  Also picked up independently in a thread in the "Campaigns" board http://www.passenger.chat/24278

[RichardB]

Local reaction to the Okehampton announcement

https://themoorlander.co.uk/breaking-news/

[grahame]

Local reaction to the Okehampton announcement

https://themoorlander.co.uk/breaking-news/

Sentiment excellent ... facts may be a little out ....

the much-publicised Okehampton to Exeter rail link, a victim of Dr Beeching?s swingeing cuts during the 1960?s has AT LAST been acknowledged as an important and vital link

As I recall 'Beeching' culled the late and very lamented line onward through Tavistock to Bere Alston and the Okehampton to Exeter rail link survived into the 1970s to be closed in a later round of cuts.   Always tricky for a general local paper to get the technical stuff right, and it probably makes no practical difference 50 years later.

[grahame]

...  With passenger numbers down to 40% (our local line) ... even further (just 13% +-1%) LNER^» (London North Eastern Railway - about) [from the TfN Community Rail Conference this morning) ....

And from The Guardian. ....

Passenger numbers on the cross-Channel train service have been down 95% since March but are currently believed to be less than 1% of pre-Covid levels under travel restrictions that will last into at least December.

Somewhat off topic but it really brings together the very different current and perhaps future metrics

[grahame]

Press release from Railfuture

2020 spending review ? a missed opportunity for rail

Rail campaigners have described the government?s spending review as "Lacking in ideas as much as lacking in content".  Chris Page, chair of Railfuture, said: "We responded to the government?s plans back in September, so we were hoping to see some positive outcomes in three areas that we identified, but we?re a little disappointed"

"Firstly, does the announcement protect the railway for when things recover?  GBP 2bn for to support rail services in the next financial year isn?t much ? if passenger numbers don?t recover quickly then services and jobs or pay will have to be cut.  To avoid that the DfT^» (Department for Transport - about) will have to take action to encourage passengers back, by offering fares which people feel are fair, enabling them to work from home part-time whilst encouraging them to commute more frequently.

"Secondly, does the announcement provide funding for a rolling programme of electrification? A missed opportunity here ? no mention of electrification, which with modal shift is the best way to decarbonise transport.  The Treasury must accept that Network Rail can deliver electrification cost-effectively. The effect of delay is that Network Rail would lose the learning that it has gained so expensively on GW^▸ (Great Western) and MML^» (Midland Main Line. - about) electrification of what works and what doesn't - electrification teams are being disbanded because their projects are being completed.  Ironically Government inaction would cause the excessive cost of electrification which it fears, as mistakes are repeated because the learning has been lost.

"And third, does the announcement support economic recovery, social mobility, levelling up, carbon reductions etc? Another missed opportunity ? most of the rail investment mentioned is not new.  The opportunity of station upgrades from the levelling up fund,  the funding for the Tees Valley Hydrogen Transport Hub and the results of Restoring Your Railway Ideas Fund round 2 and New Stations round 3 are welcome.  However to make a big difference to economic recovery, social mobility or carbon reduction we need to accelerate existing rail proposals such as the TransPennine route upgrade, reliability improvements around Manchester and Midland Main Line electrification."

[ChrisB]

I will point out that this review was covering just 12 months from next April. The 3 items above are all going to take a longer period, so possibly held over for a year. Have the current electrification projects all already completed or still ongoing?