RIA: rail offers jobs, income and social opportunities

JOB opportunities, higher wages and huge time savings are among the principal social and economic benefits that the rail industry can deliver for Britain, according to a new report commissioned by the Railway Industry Association (RIA).

Published by Oxford Economics on November 2, The economic, environmental, and social opportunities that rail brings to the UK determines that increased use of rail brings benefits for the economy by improving productivity and labour market outcomes.

It also states that reduced congestion, resulting from the use of public transport, generates around £1.4 billion in time-saving benefits every year for commuters in six of the UK’s largest cities.

Additionally, it says that cutting journey times between cities such as Manchester and Leeds by 20 minutes could increase wages by approximately £600 per worker per year, while a 10% reduction in regional journey times could support between 1,950 and 12,600 jobs depending on the area. It notes that 5,900 of those opportunities could be in Scotland.

The report also highlights how the benefits of building new railway lines reach beyond just those who use them, by freeing up capacity on existing networks to bring “secondary” benefits to passengers who do not use the new lines.

It cites High Speed 1, where users of the existing Southeastern network enjoyed journey time and frequency improvements estimated to be almost as substantial as the direct benefits of the project.

There is extra capacity for rail freight, too, with all the environmental benefits attainable from removing heavy goods vehicles from the roads. The report estimates seven million fewer lorry journeys per year already.

With rail established as having a lower environmental impact than other modes of transport, the report points towards further carbon reductions, estimating that electric trains will produce 14 times fewer emissions than conventionally fuelled trains.

Accessibility is also addressed, with an estimated £115 million in healthcare cost savings generated each year by improving public transport in six of the UK’s largest cities. And beyond the economic benefits, the report says those with better public transport links are more likely to have access to services and participate socially.

Introducing the report, RIA Chief Executive Darren Caplan said previous research carried out by Oxford Economics on the economic contribution of rail showed that in 2019, the railway industry supported £43 billion Gross Value Added (GVA) in economic growth, 710,000 jobs, and £14bn in tax revenue. Furthermore, for every £1 spent on rail, £2.50 of income is generated in the wider economy.

However, Caplan warned that figures alone do not tell the full story, noting that the benefits achievable must be “facilitated by a strong rail supply sector”.

He noted how rail supports social mobility and integration, and explained that the social benefits are “substantial and varied”, adding: “As well as supporting leisure opportunities, rail links improve public health by providing access to healthcare facilities and by encouraging walking and cycling to and from local stations.”

Caplan wrote: “The study provides further evidence that investing in the UK rail network is an effective way to boost efforts to

meet environmental targets. For instance, electrifying a traditionally fuelled rail route would result in a 66% reduction in CO2 emissions, in a transport mode which accounted for only 1.4% of the UK transport sector’s CO2 emissions, but 9.5% of all passenger kilometres. This illustrates rail’s essential place in the effort to achieve net zero”

He concluded that the industry must take the “post-pandemic opportunity to invest in what is a key sector.”