DfT has spent £44m on rail re-franchising since 2013

The DfT has spent £44.2m on re-franchising costs since spring 2013, a parliamentary reply has disclosed.

The franchising programme was re-launched in spring 2013. Prior to this date costs of projects were not individually recorded.

A breakdown is given for six franchises: Essex Thameside (£4.8m); Thameslink, Southern & Great Northern (£7.3m); East Coast (£8.4m); Northern (£8.7m); TransPennine Express (£7.6m); and East Anglia (£7.4m).

The figures include adviser and related costs.

The Essex Thameside figure does not include costs incurred before the 2013 re-launch. The East Coast costs were covered by the National Express performance bond and were not borne by the taxpayer. The Northern and TransPennine Express figures are final but may be further adjusted to include residual costs. Costs of the East Anglia franchise are still ongoing.

Parliamentary under-secretary, Paul Maynard defended the expenditure saying: “The sums invested in each re-franchising project are dwarfed by the (Resource) Support for Passenger Rail Services benefits to the Department from the re-franchising – £200 for every £1.”

JH

Northern re-franchising cost the DfT £8.7m
Northern re-franchising cost the DfT £8.7m.

 

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