Economy benefits by £725m from threatened railway arches firms

BUSINESSES BASED in railway arches contribute £725m to the economy every year but face an uncertain future because of a planned sale of their premises, research has found.

An economic thinktank found that each of the businesses in 4,455 arches around the country adds an average of £160,000 a year to the economy.

Research was carried out by the New Economics Foundation (NEF) as Network Rail prepares to sell its estate of railway arches for up to £1.5bn.

The NEF said the businesses could be at risk and some had been hit with rent increases in the run up to the sale.

NEF researcher Sarah Arnold said: “Every day we speak to small business owners who have had to shut down or relocate because of massive in-year rent increases, often leaving arches vacant for years. And now, with the impending sale of the estate, their future is even more uncertain.”

The NEF is supporting the Guardians of the Arches, a campaign launched by small businesses based in arches.

The biggest rent increase was a 345 per cent rise facing a 93-yearold man who had been running a garage for 60 years in Clapham, London, the NEF said.

David Biggs, the managing director of Network Rail Property, said: “All lease arrangements will transfer to the new owner and all arrangements and protections will stay in place. We believe a new owner will bring more investment to the commercial estate, benefiting tenants and local communities, and creating jobs and stimulating economic growth.

‘The sale is completely unconnected with periodic rent reviews which are part of our normal business activity.”