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).
(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)|
|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|
|South West Trains||+8.3||+8.8||6.6||7.6||+1.7||+1.2|
|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