State spending on rail continues to fall as TOC premiums rise

Government support for the rail industry continues to decline, albeit slowly. Latest figures from the ORR show that total state expenditure in 2015/16 fell to £4,771bn (2014/15: £4.846bn). It has now fallen for three consecutive years.

Government expenditure peaked in 2006/07 at £6.308bn (£7.327bn in real terms), but the current total is still higher than it was in 2010/11 when it stood at £4.226bn.

The £4.771bn (£4,771m) 2015/16 expenditure comprised: £3,999m (2014/15: £3,802m) in direct rail support (the Network Rail grant; £126m PTE grant (2014/15: £123m); £803m Crossrail (2014/15: £1,097m); £463m HS2 (2014/15: £362m); and £197m on miscellaneous expenditure (2014/15: £257m). The TOCs also contributed a net payment of £817m (2014/14 £796m). This is the difference between premiums paid and subsidises received by the DfT.

The TOCs have returned premiums to the DfT for five consecutive years. £817m is the highest contribution to date.

The figures exclude the £21m freight grant (2014/15: £18m), which is recorded separately.

DfT loans to Network Rail have increased to £6.614bn (2014/15: £6.369bn).

A more detailed exposition of the results will be published on this site shortly.

JH

Virgin Trains East Coast is one of 11 TOCs - out of 18 - that make premium payments to the DfT
Virgin Trains East Coast is one of 11 TOCs – out of 18 – that make premium payments to the DfT

 

ORR: Government support for the rail industry 2015/16

ORR: Rail Finance Report 2015/16

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