Mode Shift Revenue Support Scheme
The question
To ask the Secretary of State for Transport, with reference to the Guide to the Mode Shift Revenue Support Scheme, published in January 2026, what criteria are used to determine value for money in awarding grants; and how those criteria are weighted in funding decisions.
Answered by Keir Mather
Mode Shift Revenue Support (MSRS) grants are awarded through a competitive bid round process, and applications are prioritised based on their value for money using a cost-benefit ratio. Those schemes which deliver the greatest value are most likely to succeed.
Individual freight grants are capped by the estimated Mode Shift Benefit Values (MSBs) and by financial need. The MSBs are an estimate of the economic, environmental and other social benefits of removing one lorry mile of freight from the road and transferring it to rail or water. Financial need is the difference between the total cost of the rail or water-based solution and the total cost that would be incurred if the freight were moved by road.
The value of grant cannot exceed 30% of the total rail costs or the total cost of inland waterway transport. The grant also cannot exceed 50% of the environmental benefit.
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