The Economic Contribution of UK Rail, published 2021
4.3 RAIL SUPPLY SECTOR IMPACTS BY REGION The analysis in Chapter 3 showed how direct activity on the UK railway system is disproportionately focused on London. However, the benefits of the system’s external expenditure on assets, goods, and services, as reflected in the makeup of the rail supply sector, is spead much more evenly around the country. As Fig. 42 shows, London accounts for 27% of that sector’s GVA, which is only modestly higher than the capital’s 24% share of all UK GVA. Excluding London, the sector’s pattern mirrors that of the wider economy even more closely. But it is is worth noting that this activity is ‘over-represented’ in the East Midlands, despite activity on the railway system itself being ‘under-represented’ there. Fig. 42. UK rail supply sector GVA in 2019, by region % of national total
Rail supply 3% 9% GDP
7%
UK 3% 10% GDP
7%
7% 6% 7%
0% NE
8%
7%
9%
20% NW
Y&H
27%
24%
40%
EM
WM
13%
EE
14%
60% LDN
SE
6% 3% 7% 3%
7% 3% 8% 2%
80% SW
WAL
100% SCO
NI
Source: Oxford Economics
In the case of employment, London accounts for 20% of all jobs in the rail supply sector, which is again only modestly higher than that region’s 17% share of all UK workers (see Fig. 43). The five regions in the North of England and Midlands account for a combined 39% of rail supply sector jobs, which is also modestly higher than those regions’ 37% share of the UK workforce. Fig. 43. UK rail supply sector employment in 2019, by region % of national total
Rail supply 4% 11% jobs
8%
8%
UK 3% 11% jobs
8%
7%
0% NE
9%
8%
20% NW
Y&H
EM
8%
9%
20%
17%
40% WM
EE
12%
14%
60% LDN
SE
6% 3% 8% 3%
8% 4% 8% 3%
80% SW
WAL
100% SCO
NI
Source: Oxford Economics
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