Rail Regulator warns of massive funding shortfall
Britain’s rail network needs a massive injection of cash over the next five years or fares will increase and lines will close, the rail regulator has warned.
Tom Winsor said Network Rail needs an extra GBP24.75bn over the next five years if the railways are to be brought up to decent standard.
If the Department of Transport heeds the advice, the Strategic Rail Authority (SRA may have to subsidise the railways to the tune of GBP1.5bn per year.
The SRA is funded by Government, which in turn may look to increase taxes to bridge the shortfall in funding.
Mr Winsor’s warning would seem to throw into question the budget estimate for the railways in the Government’s 10-year transport plan.
The news comes as the not-for-profit Network Rail is reported to be cutting GBP5 billion from its budget as it curbs spending on the renewal of some tracks over a two-year period.
Network Rail is expected to reduce spending to GBP24.6 billion, from the original estimate of GBP29.5 billion over the next five years.
