Rail Business UK, 31 July 2024
UK: Secretary of State for Transport Louise Haigh has commissioned an internal review of the Department for Transport’s capital spend portfolio, following Chancellor Rachel Reeves’ July 29 statement in the House of Commons about unfunded public spending.
Reeves said ‘in the wake of the pandemic, demand for rail services fell. But instead of developing a proper plan to adjust for this new reality, the government handed out cash to rail companies to make up for passenger shortfalls, but failed to budget for this adequately. Because of that, and because of industrial action, there is now an overspend of £2·9bn in the transport budget. That was unfunded and undisclosed.’ The Chancellor said the new government would cancel those projects in the Restoring Your Railway programme which have not yet commenced.
In her July 30 written statement to parliament announcing the review, Haigh said ’we will bring in external expertise and move quickly to make recommendations about current and future schemes’. This will inform the development of a long-term strategy to create ’a modern and integrated network with people at its heart and ensuring that transport infrastructure can be delivered efficiently and on time’.
Haigh said ‘communities up and down the country have been given hope for new transport infrastructure, with no plans or funds to deliver them’. The new government would ‘not make that mistake’, she insisted.
Commenting on the announcements, Railway Industry Association Chief Executive Darren Caplan said ‘we support the need for a strategic review of transport schemes, and urge the government to make sure that the spending review takes account of the crucial role rail investment plays in supporting jobs, local growth, connectivity and decarbonisation within and between the UK’s nations and regions. As the National Infrastructure Commission recently noted, a lack of rail capacity is at risk of holding back growth in key cities.’
The Campaign for Better Transport said the RYR Fund ‘was key to getting much-needed lines and stations reopened. We urge the government to reconsider.’
Neil Middleton, Vice-Chair of campaign group Railfuture, said scrapping the RYR Fund was ‘very disappointing’, but added ‘I’ve noted the small print — that these projects will be reviewed, and by implication might still go ahead’. He hoped to hear ‘that many RYR bids will still happen, albeit with new funding arrangements’.