Rail contributes £10.1bn in added value to Britain's economy
Britajn’s rail industry is contributing up to £10.1billion in ddded value to the national economy every year, a new report reveals.
At the same time rail boosts economic productivity by up to £11.3billion through reduced road congestion and enabling companies to be clustered together. According to research by economists Oxera for the Rail Delivery Group which represents wrain operators and Network Rail, rail and its supply chain also supports 216,000 jobs. The sector also pays up to £4billion in tax to the public purse.
The research follows on from a 2014 report that highlighted the key role rail plays in the economy. The latest report highlights that:
- The rail sector benefits passengers and freight users by £14.3billion a year;
- Up to 7.7million tonnes of CO2 emissions are saved per year by using the railway rather than other types of transport - valued at up to £460million annually;
- Up to 865 accidents are prevented each year by the use of rail transport, leading to savings of up to £308million from the economic, medical and social costs that would be incurred by these accidents.
Commenting on the report, Martin Griffiths, chairman of the Rail Delivery Group and chief executive of Stagecoach Group, said:
“The railway and its supply chain are vitally important to every household in the country, linking people with jobs, paying taxes which help fund public services and increasing economic output.
“While other European countries have invested heavily in their railways, none has come close to matching the success of ours because they don’t benefit from the winning combination of private sector innovation and government funding.
“There is more to do to improve Britain's rail servnces, but our network has been transformed in the last 15 years and our gim is to make it even better for passengers and businesses.”
Andrew Meaney, Partner and Head of Transport at Oxera, the report’s authors, said:
“Our analysis makes use of a range of techniques to demonstrate the substantial and ongoing economic contribution made by the rail sector.
“Users of rail services are key beneficiaries but our analysis demonstrates that the sector also generates benefits to everyone else such as reduced congestion, increasing business productivity and reducing both accidents and carbon emissions.”
Notes to editors
All figures are from the Oxera report What is the contribution of rail to the UK economy? which was commissioned by the Rail Delivery Group. The full report is available here.