Crossrail expenditure inflates state expenditure on rail

Government support for the rail industry increased £227m to £5.287bn in 2013-14, the highest level since 2007-08, according to the latest ORR statistical release. However, the figure is inflated by Crossrail expenditure, which accounted for £1.1bn. The direct rail grant to Network Rail actually fell £327m to £3.453bn, making it the lowest payment since 2005-06. Net payments from franchised passenger train operators dropped to £40m from £420m in 2012-13, and the PTE grant increased £18m to £182m.

Only three TOCs are ‘profitable’ (pay back more than they receive):  First Capital Connect (£93.7m); South West Trains (£64.1m) and East Coast Trains (£19.9m).

Separate DfT figures provide more a detailed analysis on a pence per passenger mile basis (see below), but they exclude the Scottish, Welsh, London Overground and Merseyrail results (which come under different franchising jurisdictions).

TOC

(a) + (b) = (c)

(a) TOC subsidy or premium (+) per passenger mile (pence) (b) Network Grant per passenger mile (pence) (c) Total subsidy or premium (+) per passenger mile (pence)
2013-14 2012-13 2013-14 2012-13 2013-14 2012-13
c2c +0.6 +2.8 6.3 7.1 5.6 4.3
Chiltern +0.7 1.0 8.5 11.2 7.9 12.1
Cross Country 1.6 1.0 14.0 15.3 15.6 16.3
East Coast +6.5 +6.2 5.9 6.7 +0.6 0.5
East Midlands Trains 0.3 0.2 12.9 13.9 13.1 14.1
First Capital Connect +8.5 +8.3 4.6 5.3 +3.9 +3.0
First Great Western +2.1 +4.6 8.5 9.2 6.4 4.5
First TransPennine Express 6.0 4.1 10.9 12.3 16.8 16.5
Greater Anglia +5.9 +5.4 7.5 8.6 1.5 3.2
London Midland 4.5 4.1 9.1 10.5 13.6 14.6
Northern Rail 25.8 23.9 25.7 29.1 51.5 53.1
Southeastern 3.6 3.1 8.8 9.9 12.4 13.0
Southern +5.9 +7.9 6.5 7.3 0.6 +0.6
South West Trains +8.3 +8.8 6.6 7.6 +1.7 +1.2
Virgin Trains +2.6 +2.6 7.3 8.4 4.7 5.7
All 15 DfT franchises +1.8 +2.5 8.7 9.8 6.8 7.3

Source: DfT, ORR

ORR: 2013-14 annual statistical release: Rail Finance

DfT: Business plan input indicator: Rail subsidy per passenger mile

656/Sep 14

 

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