Be bold on UK rail to drive economic growth
The UK railway can help drive growth through enhancing connectivity which, in turn, boosts jobs and skills. Ahead of its annual conference in Liverpool, Darren Caplan, Railway Industry Association, Chief Executive argues that an upward trajectory for rail demand is an economic, environmental and industrial strategy opportunity for Labour.
Labour’s first party conference in Government for 15 years will be significant in setting out its vision, direction and policy agenda going forward. Prime Minister Sir Keir Starmer will be hoping the annual event serves to both rejuvenate and inspire his activists and members, as well as alleviate the negative mood music of “difficult decisions” on the economy, the headline theme of the first few months of power.
Chancellor Rachel Reeves’ upcoming budget will also inevitably loom large over the conference with the prospect of cuts to public services and tax increases. However, change brings opportunity and the prospect of doing things more effectively and we in rail are hoping for a fresh start.
The Railway Industry Association (RIA) – which represents the businesses which build, renew and enhance the UK’s rail network, and the trains which run on it – recognises and agrees with the central importance of growth to the Government’s economic agenda. In our September Budget representation, we urged the Chancellor to bring forward a steady pipeline of capital projects across infrastructure including rail investment, to lower costs, create jobs, boost growth and secure the UK’s industrial and manufacturing capacity.
Rail has long been a totemic industry for Labour at an operational level, as can be seen from its prominence in the Government’s legislative programme with three specific Rail Bills. So we ask Ministers to appreciate the importance of boosting the capacity of the rail network not just as important in its own right but also as a catalyst and multiplier for the national economy, regional growth, decarbonisation and providing social value to communities across the country.
The rail suppliers that RIA represents believe that delivering a bigger and better UK rail can help drive growth through enhancing connectivity which, in turn, boosts jobs and skills. With rail passengers returning to pre Covid levels, and forecasts showing that both passenger and freight customers will grow in the future as the UK population increases, we really do need to grasp this opportunity now.
The Chancellor’s upcoming Budget is also a real chance and potential springboard to secure much-needed leveraging of private capital to enhance existing and future public investment. Rail infrastructure needs to be seen as long-term assets worth investing in and not just a cost on the public purse. And rail manufacturers from across the regions of the UK urge the Government to hasten decisions on rolling stock manufacturing in the short to medium terms. Such moves will bolster the Government’s industry strategy ambitions.
As Labour gathers in Liverpool there is a 'now or never' decision on whether to progress tunnelling between Old Oak Common and Euston for High Speed 2 without which we will not secure sufficient north-south capacity for the future. UK rail is also crucial to the Government’s sustainability and industrial strategy aspirations. So RIA calls on Labour to be positive about the future role the railway industry can play, with the right policy framework and political ambition, as we all work together to deliver that fresh start for UK rail.
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