Con­cern at ‘boom and bust’ rail fund­ing

Rail (UK) - - Network -

Busi­ness lead­ers in the rail in­dus­try have voiced con­cerns about the ‘boom and bust’ in rail fund­ing.

In a sur­vey of 122 lead­ers by in­de­pen­dent polling com­pany ComRes, con­ducted be­tween Septem­ber 12 and Oc­to­ber 15, 99% of re­spon­dents said there are peaks and troughs in rail fund­ing to some de­gree, with two-thirds say­ing the term ‘boom and bust’ best de­scribed the na­ture of Gov­ern­ment spend­ing in rail.

More than four in five re­spon­dents warned of a neg­a­tive im­pact on their busi­nesses, with 61% hav­ing frozen re­cruit­ment.

Rail­way In­dus­try As­so­ci­a­tion Chief Ex­ec­u­tive Dar­ren Ca­plan said: “It is clear from this new poll that the ‘boom and bust’ rail busi­ness lead­ers are fac­ing in rail fund­ing stops them from in­vest­ing or hir­ing new staff and, in the case of SMEs, jeop­ar­dises their abil­ity to sur­vive.

“It also adds up to 30% to the cost of rail in­fra­struc­ture work, mak­ing the rail­way more ex­pen­sive for pas­sen­gers, tax­pay­ers and the Trea­sury alike.”

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