Severn Valley Railway launches £1.5 million Survival Fund appeal
face of dramatically rising costs, falling visitor numbers and decreasing revenue, the Severn Valley Railway has launched a £1.5 million Survival Fund appeal to overcome its current financial crisis and to make longer-term plans for its future. The SVR announced in January (Railways Illustrated issue 241) that it was implementing a range of measures to bring rising costs under control. These have included reducing the number of operating days during the 2023 season, introducing a simplified timetable, a freeze on recruitment for non-essential roles, and a combination of voluntary and compulsory redundancies from its paid employees.
The railway has written to more than 25,000 shareholders, members and donors to urge them to support the Survival Fund, stating that the future of the railway could be at risk unless it can secure an urgent injection of cash. This is due to the changing circumstances over the past three years that have created a ‘perfect storm’ of conditions that are affecting the SVR – along with a number of other lines in the heritage railway sector.
SVR managing director Jonathan ‘Gus’ Dunster said: “Our programme of events and services this year is as vibrant as ever. It is crucially important to us to continue to attract visitors as this will play a huge part in getting us through the challenges we face. We are confident we can deliver on and surpass visitor expectations. “However, operating a heritage railway is a cyclical business. For several months at the beginning of each year, there’s very little income because we are not open to the public. Pre-covid, we got ourselves through this lean time by having a cash reserve in the bank, but that option has been taken away by the combined financial challenges of the past three years. “Unless we address this situation urgently, we won’t be able to lift the railway out of the financial difficulties it is now facing. The Survival Fund will help us through the coming very difficult year in order to start 2024 with a sufficient ‘reserve’. Then we will stand a real chance of getting the railway properly back on its feet, so it can thrive and be fit for the future.”
The SVR also wants to restructure the three companies that form the railway – SVR (Holdings) Plc, the SVR Company Ltd and the SVR Charitable Trust – to achieve a structure with charitable status at its heart. This would help to unlock new income streams, such as Gift Aid on ticket sales and grant funding, along with other financial benefits like zero business rates and decreased administration costs.
The railway says that finding a better way to manage its collective assets, finances and resources in the future is behind the desire to seek a restructure. An application has been made to the National Lottery Heritage Fund for a grant to enable this work to take place.
SVR interim chairman Chris Walton said: “We place huge value on the support the SVR has received over the years.
“This has helped it to grow from its humble beginnings in the 1960s into one of the UK’S leading, award-winning and much-loved heritage railways.
“It’s meant the preservation of our buildings, infrastructure, locomotives, rolling stock and artefacts for future generations to enjoy, and it brings pleasure to many thousands of people each year, generating tremendous economic benefit for the surrounding communities.
“We would not be making this appeal if it wasn’t completely necessary for the survival of the railway, and we hope our supporters will understand the difficulties we face and give us their backing.”
Any Railways Illustrated readers wishing to make a donation to the Survival Fund Appeal can do so through the SVR’S website at www. svr.co.uk