We have joined industry leaders to call on Government to improve the Railways Bill to support economic growth & investment.

As the House of Lords begins its scrutiny of the Railways Bill, leading trade associations and transport organisations have jointly written to the Treasury, calling for the Government to improve the Bill by making amendments to safeguard future rail infrastructure investment and growth across the economy.

The organisations, which together represent thousands of businesses and millions of employees, are calling for changes to two parts of the Railways Bill, which as things stand, could weaken business confidence and deter investment.

• Schedule 2. As drafted, the Bill currently allows a future Transport Secretary to effectively vary and reduce ‘five-year’ infrastructure funding settlements at any time, weakening business confidence and jeopardising future investment. Stable, visible, long-term funding is essential to control costs, support timely delivery, and encourage innovation and investment, and for the last 35 years has been a long-established way of funding infrastructure, maintenance and renewals.
• Clause 72. The Railways Bill also as currently drafted, creates new powers for Government to change legislation in future in areas that would affect investments in and around the railway, including depots, freight terminals, port and airport terminals, and devolved rail networks.

The coalition is therefore calling for safeguards to help maintain investment certainty, attract future private funding and support the Government’s growth agenda. The letter makes the case for Great British Railways to be established to attract additional investment from third-party partners to support an effective and resilient transport system that underpins economic growth.

The signatories

The signatories include ITS UK, alongside: the Railway Industry Association (RIA); Association for Consultancy and Engineering (ACE); British Chambers of Commerce (BCC); CBI; Civil Engineering Contractors Association (CECA); Campaign for Better Transport; Global Infrastructure Investor Association (GIIA); Heathrow Southern Rail; Logistics UK; and UK Major Ports Group.

The letter was led by the Railway Industry Association. RIA Chief Executive and ITS UK Board Member, Darren Caplan, said: “The Railways Bill represents a once-in-a-generation opportunity to create a modern railway that supports growth, attracts investment and delivers value for taxpayers. So whilst we and the rail supply sector support much of what is in the Railways Bill, the changes we are proposing are targeted, practical and will help save public money.

“As the Bill enters the Second Reading in the House of Lords, there is an opportunity to ensure this enduring legislation is improved and provides the long-term certainty investors need and protects confidence across businesses. By making a small number of targeted amendments, the Bill can be strengthened to boost greater private investment and help ensure the UK railway continues to deliver economic benefits for passengers, businesses and taxpayers for years to come.”