The Railway Industry Association (RIA) is calling on the government to end ‘boom and bust’ investment cycles and set out clear investment plans in 2025.
In an open letter to Transport Secretary Heidi Alexander, RIA Chief Executive Darren Caplan has outlined three ‘asks’.
The letter includes using the Treasury’s Spending Review, due in the summer, to “ensure visible and smooth volumes of work”, saying that a long-term steady rate of work will allow projects to be “optimally, efficiently and cost-effectively delivered”.
Caplan has asked for investment plans that take advantage of private investment, highlighting the High Speed Rail (Crewe-Manchester) Bill as an “opportunity to confirm legal provision for much needed potential future north-south rail capacity”.
“This is essential to addressing ongoing significant passenger growth and the growth forecast in the RIA-commissioned Steer Report3, with freight increasing too,” he wrote.
“Developing and delivering this capacity would also secure skilled jobs and enhance future productivity in key cities in the Midlands and the North, which is a key plank of the Government’s devolution proposals.”
The latter also said the RIA would like to work with government on the criteria, opportunities and role of third parties to help spot potential uses for private investment for rail-related development.
The third ‘ask’ is for rail reform in partnership with the supply sector.
“As ‘track and train’ operations are brought closer together under GBR, there is an opportunity for a more collaborative, integrated, railway, supported by a supply sector that is agile, responsive, and aligned with the relevant Government ‘Missions’,” Caplan wrote.
“With over 50% of rail expenditure currently going through the supply chain, RIA is clear that suppliers need to be fully involved in developing the reforms.
“So RIA asks the Government to ensure that not only does rail reform progress in a way which gives the railway industry some certainty as soon as possible – especially considering the process was initially started back in May 2018 – but that it is also informed by the rail supply sector as the plans are developed.”
Caplan also said the RIA welcomed the commitment to ensuring HS2 Phase 1 reaches Euston, and continuing with the Transpennine Route Upgrade and East West Rail projects, as well as the commitment for a long-term rolling stoke pipeline.
However, the letter does warn of low confidence within industry.
Caplan’s letter told Alexander: “The immediate outlook for businesses in that industry, does unfortunately remain strained after a difficult 2024. A recent RIA-commissioned Savanta survey of 250 rail business leaders last October showed business confidence very low in the rail supply sector, following an extended period of political and policy uncertainty before July 2024 and a slower-than-anticipated start to Network Rail’s Control Period 7 since April 2024.
“Redundancies in highly skilled roles are being reported right across the industry, with 9.4% of the rail workforce leaving the industry in the last year as work moves to other sectors, overseas or workers choose early retirement. 2 Skills shortages – if unaddressed – will increase future costs not just for the rail industry but for the taxpayer too.”
Summing up his letter, Caplan said it was “vital the Government sets out a positive stall for the next 12 months”, adding: “And that, given many key rail improvements cannot wait until the establishment of Great British Railways towards the end of 2026 at the earliest, decisions on major projects, enhancements and train building and refurbishments, are brought forward to help to attract business investment.”
The letter also said RIA and its members would push for greater efficiency, lead research on option for lower cost electrification and decarbonisation, develop a proposition to help attract private investment, work with suppliers to repaper for the Cabinet Office’s Procurement Reforms and work with the DfT to champion better relationships between Government, rail clients and suppliers.
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