Rail industry expected to contract

Three-quarters of businesses believe that a hiatus in spending decisions on rail is likely over the next year, with 57% expecting to prioritise work outside the UK or to slow down expansion plans in the UK as a result.

A survey of RIA members found more companies expected the UK rail industry to contract over the next year (43%) than expect it to grow (34%).

This represents a reversal of the situation 12 months ago, when 45% thought that the sector would grow compared with 31% predicting contraction.

“There is a real risk that businesses are put off investing in the UK because of uncertainty over future rail funding or delays to decisions on reform,” said RIA Chief Executive Darren Caplan.

“While RIA and our supplier members will, of course, take a proactive and positive approach to the future, we urge the Government to act now by giving more visibility and certainty on work pipelines.”