Rail spending rises, but TOC contributions fall

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 was £51.2bn.

Inclusive of Network Rail grant, Arriva Trains Wales (27.2p) received the largest subsidy per passenger-km in 2017-18.

The largest subsidy payment from government excluding the Network Rail grant was £307m, received by ScotRail - a rise of 22.3% compared with 2016-17. Total subsidy per passenger-km for ScotRail was 20.9p.

In England, Northern received the most direct subsidy of any operator - £283m, and in total 26.1p per passenger-km. When their share of the direct rail support is considered, the figures for ScotRail and Northern rise to £619m and £675m respectively, making them the most subsidised TOCs overall.

Of TOCs making premium payments to the Government, the highest amount was paid by South West Trains (now South Western Railway) with a figure of £380m, followed by Virgin Trains East Coast (£343m).

Greater Anglia (up 7.8%) and

FRANCE. ROBERT Northern 156471 stands at Askam on August 21, with the 1706 Carlisle-Barrow. In England, Northern is the most subsidised operator, although for Great Britain it was Arriva Trains Wales (which was replaced by Transport for Wales on October 14).