16 October 2023
RIA has made a submission ahead of the 2023 Autumn Statement. Here are the key messages:
The UK rail sector now faces unprecedented uncertainty, which left unchecked, will harm the businesses and skilled workforce that the UK relies on to deliver a cost-efficient railway that meets its customers’ needs and supports the wider economy. Many businesses are reporting downsizing and difficulties in securing investment.
We strongly support the Chancellor’s ambition to make this year’s autumn statement about increasing business investment in the UK economy as a share of GDP. Right now, there is a real risk that the exact opposite will happen in the rail sector, as companies look overseas for more definite plans. The Government can still take actions as part of the Autumn Statement to address this and must urgently send a clear and positive signal to investors and the supply chain more generally. Continued uncertainty will only increase the future costs of UK infrastructure, as capability is eroded and investors seek a risk premium that reflects the challenges they face.
Whilst we welcome the Government’s financial commitment to Network Rail in CP7, right now, the rail industry faces uncertainty from:
The short-notice decision to cancel HS2 between Birmingham and Manchester without any consultation and short notice changes to other expected contracts;
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The absence of a clear investment plan for rail enhancements;
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No rolling stock pipeline of orders;
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Uncertainty over timescales for rail reform and industry structure; and
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TfL not having funding confirmed beyond March 2024.
The Government now needs to restore trust in rail policy-making.
We are calling on Government to:
i.
Safeguard the HS2 phase 2 route for future generations, pass the relevant Bill in the King’s speech next month and engage with industry to find a way forward;
ii.
Publish a pipeline of rail enhancements with clear and specific funding and timescales for investments;
iii.
Make decisions on rolling stock now– there are easy and no regrets decisions which will help avoid major job losses;
iv.
Get on with rail reform, passing the relevant legislation swiftly or setting out a clear timeline to introduce a single ‘guiding mind’ and interim steps;
v.
Make long-term funding commitments to TfL and other devolved transport authorities;
vi.
Work with industry to develop a clear policy on how private investment can be used more extensively; and
vii.
Demonstrate there is a clear plan for rail, that can endure political cycles, setting out a long-term strategy for the sector, including a rolling stock and decarbonisation strategy, a rolling programme of electrification, and a plan to grow rail revenues. This should be part of a long-term transport plan.
For further evidence on uncertainty in the market, and greater detail on the above ‘asks’, read our full submission
here.