Rail spending rises, but TOC co
GOVERNMENT support to the rail industry in 2017-18 totalled £6.4 billion, according to the latest figures released by the Office of Rail and Road (ORR).
That figure was bolstered by £2.1bn investment in HS2 - more than double the previous year’s £0.9bn and leading to a 48% increase in spending against 201617 when adjusted for inflation.
Direct rail support, Passenger Transport Executive and central government grants increased by £601 million in real terms in 201718, to £4bn.
Excluding HS2 funding, government spending on railways increased by 24.1% in 2017-18, although this is 16.9% lower in real terms than the peak investment in 2006-07 of £7.7bn.
For the eighth consecutive year, the Government received a net contribution from train operating companies (TOCs). However, this fell steeply from £776m in 2016-17 to £223m in 2017-18.
The only TOC to make a net contribution to the Government (inclusive of direct support for Network Rail) was the nowdefunct Virgin Trains East Coast, which recorded a surplus of £90m. Nationally, including the Government’s direct support for Network Rail gives an average figure of 6.1p subsidy for every passenger kilometre travelled in Great Britain in 2017-18 - up 0.9p in real terms compared with the previous year.
The majority of government support to the railways is its £4.2bn grant to Network Rail, the same as in 2016-17. The government loan of £5.9bn was up £100m on 201617’s amount, and the infrastructure manager’s total debt for 2017-18