The Railway Industry Association (RIA) has written to Transport Secretary Heidi Alexander, outlining concerns about the current state of the rail industry and setting out a series of “offers” and “asks” to improve confidence and drive growth.
The letter acknowledges the Government’s support for some major projects, such as HS2 to Euston and the Transpennine Route Upgrade. However, it highlights that recent surveys show low supplier confidence and significant job losses within the sector.
Key concerns:
- Low supplier confidence: The RIA emphasizes the need to address the declining confidence levels within the rail supply chain.
- Job losses: The letter highlights the impact of job losses on the industry and warns of potential future cost increases.
- “Boom and bust” cycles: The RIA urges the Government to use the upcoming Spending Review to address the cyclical nature of work in the rail sector and provide more stable funding streams.
“Offers” to the Government:
The RIA offers to collaborate with the Government on:
- Improving efficiency and innovation: Exploring ways to enhance efficiency and drive innovation within the rail industry.
- Lowering the cost of electrification and decarbonisation: Identifying cost-effective solutions for decarbonising the rail network.
- Attracting private investment: Working together to create an environment that encourages private investment in rail projects.
- Preparing for Procurement Reforms: Supporting the implementation of the Cabinet Office’s upcoming Procurement Reforms.
- Strengthening industry relationships: Fostering better collaboration between Government, rail clients, and suppliers.
“Asks” to the Government:
The RIA is urging the Government to:
- Smooth “boom and bust” cycles: Provide greater certainty around long-term funding and work rates in the Spending Review.
- Prioritise rail reform: Accelerate the process of rail reform, including the creation of Great British Railways, while ensuring the supply sector plays a key role in shaping the future of the industry.
- Address north-south rail capacity: Investigate the need to increase capacity on north-south rail lines to meet future demand.
Commenting on the letter, Railway Industry Association (RIA) Chief Executive Darren Caplan said: “Six months into the new Government and as we start a New Year, RIA is today acknowledging some progress on support for major rail projects and its call last autumn for a long-term rolling stock pipeline, whilst also setting out some ‘offers’ and ‘asks’ to boost the confidence of the railway industry on what has been a difficult time for rail suppliers. Recent confidence has been low and 2024 saw job losses among some suppliers, which is not only worrying for those involved but which also threatens to then increase the cost of work in the future. So it is vital the Government sets out a positive stall for the next 12 months.
“We urge the Treasury Spending Review planned later this year in the summer, to provide clarity on long-term rates of work, whether new railway lines, rolling stock or electrification. 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.
“Despite recent mixed reports on north-south rail infrastructure, we are asking Transport Secretary Heidi Alexander to look at the need to develop future north-south capacity, given well-evidenced forecasts show passenger numbers will grow significantly in the coming years. Further, we ask the Government to push on speedily this year with its agenda to deliver rail reform and bring ‘track and train’ together. Given over half of rail expenditure goes through the supply chain, the supply sector should be accorded an appropriately impactful role on informing rail restructure too.
“Finally, RIA and our members look forward to working positively with the new Transport Secretary, Heidi Alexander, on this agenda and other salient railway industry issues throughout 2025, a landmark year for rail as it celebrates its 200th Anniversary and as RIA celebrates our own 150th Year milestone”.
