Chancellor expected to reveal multi-billion transport plan today

Plans to improve public transport in city regions outside London with a five-year budget of £15.6 billion are expected to be announced by chancellor Rachel Reeves during a speech in Manchester today. The schemes are understood to include a long-called for extension of the Metrolink tram network to Stockport and more tram stops in Bury, Oldham and central Manchester, using funding worth £2.5 billion. West Yorkshire gets £2.1 billion to start work on a new tram system connecting Leeds and Bradford, there is £1.6 billion for Merseyside to improve airport links, £1.5 billion for South Yorkshire to renew the existing tram network around Sheffield, £1.8 billion for the North East to extend the Tyne & Metro to Sunderland via Washington, £1 billion for Tees Valley to pay for platform extensions at Middlesborough and other upgrades, £2.4 billion for the West Midlands for another tramway extension, £2 billion for the East Midlands to improve links between Nottingham and Derby, and £800 million for the West of England Combined Authority, which covers Bristol and surrounding areas, to provide more frequent trains for a new estate on the site of the former Filton airfield in South Gloucestershire and also to lay the foundations for a new mass transit scheme, which could involve trams. The expected announcement will have come a week before the government’s spending review next week, which decides the budgets for each department. Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

ORR says fare enforcement methods need urgent reform

The Office of Rail and Road says improvements are needed to revenue protection, making it more consistent, fairer and effective. There have been many reports of heavy-handed incidents. For example, a young passenger accidentally chose the wrong railcard when buying a ticket, and although the discount was the same and she could produce her railcard, she was penalised by a revenue protection inspector for her error. A detailed review commissioned by the government has revealed the flaws in the current system, which the ORR says is not working in the interests of passengers, operators or taxpayers. Research for the report found that there is ‘significant inconsistency’ in revenue protection methods, and that passengers are treated very differently by various operators. One major problem is that passengers can be confused by the complexity of the rules, while many do not understand their rights if they are accused of fraud. The reforms set out in the report include making buying the right ticket simpler and easier, with much more clarity about restrictions, the use of railcards and which routes are permitted. Operators are also being told that the rules should be consistent everywhere on National Rail, and that when passengers are accused of irregular travel they should be treated consistently, with revenue inspectors concentrating on those cases where there is evidence of an intention to avoid paying the right fare rather than an innocent mistake. Operators are also being urged to introduce greater consistency and fairness in the use of prosecutions. The transport secretary and Department for Transport will now consider the recommendations. The ORR’s director of strategy, policy and reform Stephanie Tobyn said: ‘Effective revenue protection is essential for a sustainable railway, but it must be fair and proportionate for passengers. Our recommendations aim to protect both industry revenue and support passenger confidence. ‘Our evidence shows a system that has evolved over time where the legal framework and enforcement processes are increasingly complex and appear weighted towards industry, leaving some passengers who make innocent errors vulnerable to disproportionate outcomes. But meanwhile, fare evasion remains a significant problem, and rigorous action should be taken against those who intentionally seek to defraud the railway.’ Rail minister Lord Hendy said: ‘This report shows that decades of failed privatisation have created a mess of deep-rooted issues across our railways, which have been left unchallenged and are now causing chaos and frustration for passengers. ‘Through the creation of Great British Railways, we’re bringing operators together to establish oversight and better standardise practices, putting an end to inconsistent prosecutions and making sure passengers are treated fairly. ‘Deliberate fare-dodging costs the taxpayer up to £400 million annually, but ham-fisted prosecutions that punish people who have made an innocent mistake is not the way to do this. We will look at this report in detail and set out what we’ll be doing to address the issues raised in due course.’ The Rail Delivery Group, which represents operators, said: ‘We welcome the ORR’s sensible recommendations to standardise revenue-protection practices, remove complexity and improve transparency for customers. The rail industry will work on implementing the recommendations in line with our plans to create a simpler, better-value fares system. ‘Fare evasion remains a significant challenge for the industry, costing the railway hundreds of millions of pounds each year. That’s money that can’t be used to improve services, which increases the burden on customers and taxpayers. So we need to strike the right balance addressing genuine, honest mistakes made by customers and taking firm action against those who deliberately and persistently seek to exploit the system. ‘The rail industry is taking concrete steps to simplify fares, ticketing and retail which will lay the foundation for GBR to adopt and build upon, ensuring revenue-protection practices are proportionate, transparent, and customer-focused.’ Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

Class 222s to be upgraded for FirstGroup’s new open access route

Alstom has signed a contract worth £50 million with FirstGroup and Eversholt Rail to refurbish and maintain five 6-car Class 222 Meridian trains which will be used next year on FirstGroup’s new open access service between London Euston and Stirling. The contract has two components. One, worth 10 million pounds, is for the refurbishment of the 222s, which were built by Bombardier and entered service with the Midland Mainline franchise in 2004. The other part, worth 40 million pounds, is for maintenance of the fleet for five years from 2026. The work will be carried out at Alstom’s Central Rivers depot in Burton upon Trent, where the similar Class 220 and 221 Voyagers are maintained. The depot was acquired by Alstom when it took over Bombardier in 2021. The refurbishment, which has been agreed with Eversholt Rail, will be carried out at Alstom’s centre in Widnes. New ergonomically designed seating will be fitted, along with upgraded Wi-Fi and Intelligent Engine Start-Stop technology, which automatically shuts down and restarts the engines when the train is stationary, saving fuel and emissions. The five trains will also receive a full repaint in FirstGroup’s blue Lumo livery. Peter Broadley, who is commercial director UK and Ireland at Alstom, said: ‘This partnership marks a significant milestone in our commitment to delivering high-performance, customer-focused rail services across the UK. By combining Alstom’s deep technical expertise with the operational excellence of FirstGroup and Eversholt Rail, we’re ensuring that fare-paying passengers benefit from a modern, reliable and comfortable travel experience between Stirling and London. The investment in both refurbishment and long-term support reflects our shared ambition to drive innovation and sustainability in rail transport,’ FirstGroup chief executive Graham Sutherland said: ‘We are pleased to work with Eversholt Rail and Alstom on the rolling stock element of our new service between London and Stirling. This new route is another important step towards rolling out Lumo as a nationwide operator and growing our open access capacity, a key priority for FirstGroup. Our investment and capabilities in open access rail have delivered reliable, value for money services, grown rail demand and helped to spur economic growth and connect communities. We look forward to doing the same on our new services.’ Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

Level crossing closure would ‘cut Bicester in two’

 An Oxfordshire MP is presenting a petition to Parliament today which opposes the closure of a level crossing in Bicester. The crossing is on the London side of Bicester Village station, on the B4100 London Road. The B4100 is a major route for traffic in Bicester, and there are calls for an underpass instead. At the moment the trains using the crossing are those between Oxford and London Marylebone, but the number of trains will increase significantly later this year when East West Rail trains from Oxford start running to Bletchley and Milton Keynes Central. In the years ahead, EWR will be extended to Bedford over the existing Marston Vale Line, and then on to Cambridge when a new line has been built, further increasing the number of trains through Bicester Village. East West Rail has suggested a footbridge in London Road for pedestrians and cyclists, but motorists would have to find another route. The nearest bridge over the line is on the A41, which is the other side of Bicester Village station, but this is already congested in peak hours. Bicester and Woodstock MP Calum Miller launched the petition, which has gathered more than 4,000 signatures. He had previously written to Chancellor Rachel Reeves last October, saying: ‘There is support for the new rail line but also a belief that its opening should not unfairly affect one town. They do not want to see Bicester cut in two.’ EWR said: ‘We welcome the public's continued interest in this important issue and continue to assess all the potential solutions for the London Road level crossing. ‘Whilst this work is being carried out we are working closely with our local stakeholders, including Calum Miller MP and the local councils.’ Do you have a comment? Please click here  to send an email to Platform at Railnews.  Moderated comments will be published on this site, and may also be used in the next print edition.

FirstGroup to lease 222s for London-Stirling service

FirstGroup is to lease five Class 222 Meridian diesel units cascaded from East Midlands Railway for its open access service between Stirling and London. First acquired the licence for the route from Grand Union last year. The trains, branded Lumo, will use the West Coast Main Line, departing from London Euston and calling at Milton Keynes Central, Nuneaton, Crewe, Preston, Carlisle, Lockerbie and Motherwell, from where they will run east of Glasgow to Stirling via Whifflet, Greenfaulds and Larbert. The track access agreement is valid until 2030 and provides for four daily return services, although there will be three on Sundays. A further return service will run between London and Preston seven days a week. The 222s belong to Eversholt Rail, and are being replaced in the East Midlands by bi-mode Hitachi Class 810 units. First said it expects annual revenues to be about £50 million, with a ‘low double digit operating profit margin’. It is also looking at opportunities to extend the access agreement beyond 2030, leasing bi-mode or electric trains. First is applying for several open access licences as the former franchises are being successively nationalised. Following a change in the law last November, it surrendered South Western Railway on 25 May, while its TransPennine Express contract had already been terminated in May 2023. The Group has also acquired a licence for services between London Paddington and Carmarthen, but several other applications are currently being considered by the Office of Rail and Road, although the Department for Transport said earlier this year that it was not supporting any of the outstanding bids, with the possible exception of Alstom’s application to run trains between London and Wrexham. FirstGroup chief executive Graham Sutherland said: ‘The mobilisation of our new service between London and Stirling is another important step towards rolling out Lumo as a nationwide operator and growing our open access capacity, a key priority for the Group. Our investment and capabilities in open access rail have delivered reliable, value for money services, grown rail demand and helped to spur economic growth and connect communities. We look forward to doing the same on our new services.’ Readers’ comments Will the ticket price for this service include an extra environmental tax for choosing to travel on a diesel train for such a long journey on an electrified route? Peter Evans, Stroud  Do you have a comment? Please click here  to send an email to Platform at Railnews.  Moderated comments will be published on this site, and may also be used in the next print edition.

Reopened Levenmouth line carried 300,000 in first year

Scotland’s latest reopened railway to Cameron Bridge and Leven in Fife has catered for about 300,00 passengers since it was officially opened a year ago today. The £116 million Levenmouth project involved restoring an existing freight line for passenger services and building new stations at Cameron Bridge and Leven. ScotRail introduced a second train every hour between Leven and Edinburgh via Dunfermline and Cowdenbeath in last month’s timetable change. It has also strengthened some trains to meet the demand.  ScotRail said the restored services have had a ‘significant impact on the local economy, with businesses seeing increased footfall, new businesses beginning to emerge, and visitors to the area’. Transport secretary Fiona Hyslop said: ‘It is an absolute pleasure to mark one year of passenger rail services returning to Levenmouth. This project has brought improved access and connectivity to leisure, to employment and to education – clear evidence of the Scottish Government’s commitment to investing in rail as a means of growing the economy and tackling the climate emergency.  ‘Over the last year this rail link has made transformative change, and now that ScotRail has introduced a second train to Leven each hour – this will offer further opportunities connecting the Leven area communities directly with a wider part of Fife, including Dunfermline.’ Network Rail Scotland’s managing director Liam Sumpter added: ‘Bringing the railway back after more than five decades created new opportunities, making it easier to access education, employment, essential services and even adventures exploring the Fife coast. ’Opening the line last year was just the beginning and the groundwork for long-term growth. I look forward to seeing how it continues to support people and places in the years ahead.’ Do you have a comment? Please click here  to send an email to Platform at Railnews.  Moderated comments will be published on this site, and may also be used in the next print edition.

Charity sets out rail reforms as open access debate intensifies

The Campaign for Better Transport has published seven ‘key priorities’ for making the government’s programme of rail reform a success. The list has appeared as the debate over open access continues to heat up. Unpublished analysis from consultants Jacobs commissioned by LNER is reported to claim that the presence of open access operators on the East Coast Main Line is set to cost the state operator at least £1.1 billion over the next ten years, because of ‘revenue abstraction’, which is one of the main objections to open access operators. Transport groups have been applying for an unprecedented number of open access licences recently, particularly after Labour won the 2024 election with a manifesto pledge to renationalise the former franchises. The first of these, South Western Railway, returned to public ownership on 25 May. The majority shareholder of SWR was FirstGroup, and it has been in the vanguard of open access applicants. First has commissioned its own reports, and one of these said that its operator Lumo would pay more in track access charges to Network Rail than LNER. First has also denied the figure of £1.1 billion in revenue abstraction calculated by Jacobs. A number of open access applications are outstanding, and transport secretary Heidi Alexander has been sounding a note of caution about them, while her department has declined to support nearly all the applications currently being considered by the Office of Rail and Road. Network Rail is also concerned, on the grounds that capacity on busy main lines is not unlimited. LNER, meanwhile, has just increased the number of daily trains between London and Bradford from two to seven. Bradford has been served by open access operator Grand Central since 2010. The Campaign for Better Transport is in favour of open access, saying that the government should give it support. It also wants the government to create a ‘strong foundation’ by establishing the ‘directing mind’ Great British Railways as soon as possible, be committed to increasing passenger traffic and have clear funding settlements, improve the service to passengers by such things as better information and accessibility, sort out the ticketing tangle by focusing on ‘consistency and affordability’ with a cap on long-distance fares and a ‘Rail Miles’ scheme, and draw up a strategic plan for rolling stock renewals. The CBT also calls for a better deal for rail freight, which is mostly remaining in the private sector. It says the government should invest in freight infrastructure and create a fund for targeted electrification, while giving freight priority on key routes. CBT’s chief executive Ben Plowden says: ‘The creation of Great British Railways presents a unique opportunity to change how the rail system works – structurally, financially and operationally – to provide a better customer experience. But legislation alone will not be enough. The clear strategy proposed in the Government’s recent consultation paper must follow. This must be grounded in long-term thinking, and focused on outcomes that matter to passengers, freight users and the public.’ The Campaign has published a policy paper called ‘Track changes: making a success of rail reform’. Ben Plowden added: ’Rail has the potential to underpin the UK’s economic, environmental and societal ambitions by moving people and goods more efficiently, reducing emissions and connecting towns, cities and communities more effectively. But to realise this potential, we must quickly deliver what everyone in the rail sector wants, ending the cycle of short-term decision making and giving the railways the long-term clarity, consistent investment and strong leadership required to succeed.’ Do you have a comment? Please click here  to send an email to Platform at Railnews.  Moderated comments will be published on this site, and may also be used in the next print edition.

Derby engineers move to Alstom Litchurch Lane in jobs boost

An established firm of railway engineers in Derby is moving from its premises in Pride Park to the Alstom site in Litchurch Lane, which is the largest rolling stock works in Britain. Yellow Rail, which is part of Buckland Rail, says it will have more than twice as much workshop space which will be used to overhaul freight wagons and bogies, and that about 25 new jobs will be created. After the lease has been signed, Yellow Rail plans to complete its move by September. Yellow Rail managing director Paul Cunningham said: ‘ This is a transformative moment for Yellow Rail. Relocating to Litchurch Lane not only gives us the vital space we need to expand our growing business, but it also allows us to work more closely with Alstom and other industry partners.’ He continued: ‘We are excited about the opportunities this move unlocks for our people, our partners and the wider rail community.’ Derby is said to be the largest cluster of rail-related businesses in Europe, employing more than 11,000 people. The city has been chosen as the national headquarters for Great British Railways, and a new Rail Campus Derby has also been set up to be a new home for businesses near the GBR central offices. Andy Butters is the managing director of Alstom’s Litchurch Lane works. He said: ‘We are delighted to welcome Yellow Rail to our Derby site, an organisation that reflects our shared commitment to the future of rail in the UK. ‘This collaboration is a testament to the strength of our city’s rail ecosystem and our ambition to keep it thriving for generations to come, while also representing a first step to bringing Great British Railways’ plans for Rail Campus Derby to fruition.’ Derby South Labour MP Baggy Shanker added: ‘Yellow Rail’s move to Alstom’s Litchurch Lane site is a fantastic boost for Derby and another clear vote of confidence in our city’s rail industry. This relocation not only brings new skilled jobs to the area but also strengthens Derby’s position at the forefront of UK rail innovation. I’m proud to see our city continue to lead the way in shaping the future of rail.’ Do you have a comment? Please click here  to send an email to Platform at Railnews.  Moderated comments will be published on this site, and may also be used in the next print edition.

HS2 probes claims of inflated staff charges

It has been revealed that an investigation is under way into allegations of irregular billing for workers building HS2. A whistleblower claims that two companies supplying staff to contractor Balfour Beatty VINCI had charged for supplying them as if they were on PAYE, which would presumably have included national insurance, when in fact they were self-employed. There is no suggestion that the Balfour Beatty VINCI consortium itself was responsible for any wrongful billing. An HS2 investigation has started, but it is understood that neither the police nor HMRC are involved so far. One sub-contractor is reported to have been suspended from further work while enquiries continue, while another has had its suspension lifted ‘following a period of remediation’, although it is still being monitored closely. HS2 Ltd said: ‘HS2 Ltd treats all whistleblower allegations seriously and we are aware of the claims made in relation to labour suppliers on part of the route. An investigation was launched earlier this year into a number of different allegations and our contractor Balfour Beatty VINCI has implemented additional monitoring and controls.’ The Department for Transport confirmed that both the government and HS2 Ltd ‘take all whistleblower allegations extremely seriously’. It continued that there is a ‘zero-tolerance attitude towards fraud, bribery, and corruption. We will therefore ensure any claims of wrongdoing in HS2’s supply chain are thoroughly investigated. ‘We have taken action to grip the delivery of HS2, tasking CEO Mark Wild to fundamentally reset the project and change the company's culture and capability to deliver the line as cost effectively as possible.’ Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

A new beginning, as South Western Railway is renationalised

The first train run by renationalised South Western Railway left London Waterloo at 06.14 this morning, bound for Shepperton. SWR is the first of ten former franchises being returned to public ownership between now and 2027, following a change in the law last November. A further Act of Parliament is due to be passed next year, and most passenger trains will be run eventually by the new ‘directing mind’ Great British Railways after the remaining former franchises have also been returned to public control. The private sector will still be running ‘open access’ services, such as Hull Trains and Grand Central, and the majority of freight trains. More open access services are due to start running soon between London and Stirling, and also London and South Wales, but a number of additional applications are currently being considered by the Office of Rail Road. Seven operators have already been renationalised for various reasons since 2018. Four of these are in England, two in Scotland and one in Wales.  Secretary of State for Transport Heidi Alexander said: ‘Today is a watershed moment in our work to return the railways to the service of passengers. Trains from Waterloo to Weymouth, Bournemouth and Exeter, will be run by the public, for the public.‘But I know that most users of the railway don’t spend much time thinking about who runs the trains – they just want them to work. That’s why operators will have to meet rigorous performance standards and earn the right to be called Great British Railways. ‘We have a generational opportunity to restore national pride in our railways and I will not waste it.’ The next operators to be renationalised will be c2c on 20 July this year, followed by Greater Anglia on 12 October. Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

Top