More rail competition is in everybody’s interest

SIR – News that a small train operator which connects London with Yorkshire has achieved the highest passenger satisfaction (report, January 28) highlights the need for more ontrack competition.

Hull Trains is an “open access” rail operator. This means it is operated on a purely commercial basis and does not receive any subsidy from the taxpayer. Open access companies identify a new rail service and run trains to serve towns and cities which have either lost high-quality services or are poorly served. They take the risk of developing a new market.

Importantly, on large parts of the railway, they compete with the main franchised rail operator and therefore deliver passenger choice, lower fares, more routes and happier passengers.

In a study of the East Coast Main Line, where open access rail firms such as Hull Trains and Grand Central compete with the line’s franchise holder, the Centre for Policy Studies has found that revenue increased 57 per cent at stations where competition occurred, compared with 48 per cent at those where it didn’t.

Perhaps most importantly for the passenger, average fares increased by only 11 per cent for stations with competition, against 17 per cent at those without.

More on-track competition is in the interests of the passenger, the taxpayer, the Government, the regions, and the planned Northern Powerhouse. It has been a great success in Yorkshire and the North East and more must follow. Otherwise, rail firms can hike fares without any fear of passengers being able to vote with their feet.

Tony Lodge Research Fellow, Centre for Policy Studies London SW1