UK abandons rail upgrades and delays decision on network funding
Electrification of lines to cut costs and reduce carbon emissions abandoned
The Department for Transport has come under attack for abandoning several rail upgrade projects and delaying a decision on future railway funding.
Plans to electrify the UK’s railways to cut the cost of trains, increase reliability and reduce carbon emissions were scrapped by the government on Thursday. Network Rail, which owns and runs most of Britain’s railways, has had a series of budget overspends in the past few years.
Projects that have been axed include the Cardiff-to-Swansea section of the Great Western network, the Midland mainline and the short Oxenholme-to-Windermere line in the Lake District.
The DfT said that passengers would instead benefit from “bi-mode” trains that can use overhead electrical wires and have diesel engines.
The abandoning of the modernisation schemes came on the same day that Chris Grayling, the transport secretary, postponed until October a decision on future rail funding.
Mr Grayling was due on Thursday provide details of funding for Network Rail for the period from 2019 to 2024. Instead, he said he needed more time to get further “assurance” on costs and that Network Rail should focus on day-to-day maintenance of the railways over that period, rather than big projects.
“Before committing to the specific levels of funding required, I have decided that the government requires more assurance on the likely costs of the work programme. Network Rail’s progress on improving its efficiency in recent years has fallen short of my expectations.”
Network Rail controls 2,500 stations as well as tracks, tunnels and level crossings but it has been repeatedly criticised for missing targets on its five-year investment programme, as well as budget overspends and punctuality failures.
Lilian Greenwood, head of the House of Commons’ transport committee, said: “Today’s announcement raises serious questions about the government’s willingness to invest in the long-term future of our railways . . . The government’s failure to provide details on specific infrastructure enhancements is also deeply concerning.”
Industry commentators said the delay in funding details was worrying. “It does suggest there is a lack of confidence across government in Network Rail’s ability to deliver,” said Rupert Brennan Brown, a long-time railway industry observer. “We always knew [the 2019 to 2024 period] would be challenging for enhancements — the big projects — but the fact that day-to-day work is being subject to further scrutiny is interesting.”
The funding postponement comes as industry regulator the Office of Rail and Road said Network Rail is carrying out core work 5 per cent less efficiently than it did three years ago.
In its annual review of the group, which was published on Thursday, the ORR warned that Network Rail has deferred £3.7bn of work to renew the railway in its current five-year funding period in order to remain within its budget.
Lianna Etkind of Campaign for Better Transport said: “Five years ago the government were trumpeting the biggest investment in railways since the Victorians. Today, passengers face spiralling fares while investment is put on the back burner.”