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Railways: Expenditure

Asked by Helen WhatelyConservativeTreasuryTabled Answered 6 September 2024UIN 2439

The question

To ask the Chancellor of the Exchequer, with reference to paragraph 25 of her Department's document entitled Fixing the Foundations: Public spending audit 2024-25, CP 1133, what the evidential basis is for saying there was an additional £1.6 billion cost to the rail system in the 2024-25 financial year.

Answered by Darren Jones

The £1.6 billion cost referenced is an HMT assessment of the additional cost to run rail services in 2024/25 compared to SR21 plans. This assessment was made at the point at which this government entered office. The additional cost is primarily driven by the impact of weaker-than-expected passenger demand recovery following the COVID-19 pandemic.

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