3 minute read
Foreword
DARREN CAPLAN, CHIEF EXECUTIVE, RAILWAY INDUSTRY ASSOCIATION
Rail has the potential to transform economies and societies, delivering real benefits for people, businesses, and the environment.
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In the UK, previous research carried out by Oxford Economics on the economic contribution of rail showed that in 2019 the railway industry supported £43 billion GVA in economic growth, 710,000 jobs, and £14 billion in tax revenue. For every £1 spent on rail £2.50 of income is generated in the wider economy. However, these figures alone do not tell the full story.
The railway also delivers a wide range of additional economic, environmental, and social benefits across the UK, facilitated by a strong and vibrant rail supply sector. This new study, commissioned by the Railway Industry Association (RIA) and carried out independently by Oxford Economics, examines these benefits and presents a number of new insights into the impact of UK rail.
Rail connects people and places – delivering economic benefits for rail customers whether they be job seekers, commuters, visiting friends or family, leisure travellers, or freight companies. This study finds that time savings on commutes derived from public transport are significant. For example, annually they could be worth around £226 million in Birmingham, £229 million in Leeds, and £295 million in Manchester. Results from the report also show that wages in Manchester and Leeds could rise by up to £860 per person if journey times between the two cities are cut by 20 minutes. In Scotland alone, up to 8,200 additional jobs could be supported by reduced journey times.
Rail also supports social mobility and integration, contributing to levelling up. These social benefits are substantial and varied. As well as supporting leisure opportunities, rail links improve public health by providing access to healthcare facilities and by encouraging walking and cycling to and from local stations.
The study also provides further evidence that investing in the UK rail network is an effective way to progress efforts to meet environmental targets. For instance, electrifying a traditionally-fuelled rail route would result in a 66% reduction in CO2 emissions, in a transport mode which accounted for only 1.4% of the UK transport sector’s CO2 emissions, but 9.5% of all passenger kilometres. This illustrates rail’s essential place in the effort to achieve Net Zero.
We are also proud to have worked together with industry partners on this report, who have all contributed with case studies that bring these benefits to life – showing real life examples of rail suppliers making a positive contribution to commuters, communities, and the environment. Thank you to Costain, Knorr-Bremse, Skanska, Trainline, VolkerRail, and Worldline.
While the Coronavirus pandemic has had a significant impact on the passenger railway industry, national rail ridership is now recovering, regularly reaching over 90% of pre-Covid levels. However, rail suppliers stand ready to work with wider industry partners to continue to overcome current financial challenges and economic pressures by focusing on growing revenue, cutting costs, and maximising benefits for all. Indeed, the growth prospects of rail are strong, and are also supported by the
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Government’s £96bn Integrated Rail Plan, which – when implemented – will result in further economic, environmental and social benefits for millions of people.
Furthermore, the development of Great British Railways presents a once in a generation opportunity to maximise benefits across the entire network. The Whole Industry Strategic Plan, the 30-year strategy for UK rail, must therefore be ambitious and set the pace for years to come.
We hope that the results presented in this study are not only useful, but also inspiring. The report highlights not only what UK rail already delivers, but also the additional benefits it has the potential to deliver. We need to take the post-pandemic opportunity to invest in what is a key sector, bringing benefits to the country’s economy, its people, and the environment.
Yours sincerely,
Darren Caplan
Chief Executive, Railway Industry Association
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