UK govt slashes £1bn from rail infrastructure budget

The UK government on Friday said it had cut Britain’s rail infrastructure budget by £1bn after its spending review.

Finance Minister Rishi Sunak had previously pledged record investment in infrastructure as part of the Conservative government’s so-called “levelling up” programme.

Instead, rail minister Chris Heaton-Harris on Friday said funding for enhancements for 2019-2024 had been slashed by £1bn to £9.4bn.

The cut was not mentioned in Sunak’s spending review speech to parliament when he said the government would deliver on its “record investment plans in infrastructure”.

The Railway Industry Association, a trade body representing rail supply firms, described the decision as “very disappointing”.

“Rail enhancements are essential in ensuring our rail network is fit for the future, improving reliability, connectivity, customer experience and helping to reduce carbon emissions,” said chief executive Darren Caplan.

“Taking our foot off the pedal now on rail investment will not help for when passengers return following the coronavirus pandemic.”

Mick Whelan, the general secretary of train drivers’ union Aslef, said the decision “puts a question mark over not only some long-planned and much-needed improvements to our transport infrastructure, but to the whole question of rebuilding this country after the pandemic”.

During the spending review, a further £2.1bn of taxpayer cash was allocated to cover private train company losses during the coronavirus pandemic.

The government took over rail franchise agreements from operators in March, after travel demand collapsed due to the crisis and associated lockdowns.

This involves taxpayers covering lost fare revenue and paying a fee of up to 1.5% of pre-pandemic operating costs to keep services running.

An estimated £8bn will be spent in the current financial year, with a further £2.1bn allocated for 2021/22.