Sector deal to underpin rail’s value

The increased economic value of the rail sector must be recognised by the Government in its forthcoming industrial strategy, which aims to boost productivity and earnings across the UK.

That is the message from Alex Burrows, marketing and strategy director at Alstom, one of ten industry partners behind the report.

Speaking at the launch of the report on February 27, Burrows said its findings would serve as a useful addition to the ongoing negotiations to secure the sort of sector deal that already exists for the automotive and life sciences sectors, and which is being extended by government to other parts of the national economy.

“These are serious numbers, and demonstrate the huge effect we have on regional and national economies,” he said.

“I hope the Government will remember that its net contribution to the railway is easily made up for in economic benefits, so we are not a drain on the economy. Railway receipts are going up, so government is getting more money for its investment. And although it seems like record investment is going in, it’s because the railway is doing well.

“The railway has a positive effect on the economy, society and the environment, and we need to tell that story and use this report as one of many weapons we have to engage with government.”

Burrows also had a message for the Government on how it could further increase GVA from the rail sector, by being more consistent in transport policy - for example, avoiding a repeat of its sharp U-turn on electrification following the cancellation of schemes in south Wales, the East Midlands and Cumbria.

He added: “We have reduced electrification unit costs just as the industry has come to a standstill. We need certainty and a very clear pipeline of work to plan around, in order to maximise GVA.”