Recliner
2024-12-18 02:01:16 UTC
Reply
Permalinkhttps://www.thetimes.com/article/bb5df0b9-e2b9-4816-b72b-fab8fdfc5edb?shareToken=17b0fdf3eea2684763fafc15f8657680
East Coast Main Line shows how to run the railways
Drill into rail’s latest passenger and financial figures and there is a
silver lining for those who believe nationalising trains might deliver more
reliability, lower subsidies and fares.
But there is a huge caveat: success will depend on ministers choosing to
copy an operating model that has proved to be hugely successful on
Britain’s East Coast intercity route for a quarter of a century. This is
where three privately owned non-subsidised train companies, known as open
access, compete aggressively with the state-run operator.
The chancellor Rachel Reeves and the new transport secretary Heidi
Alexander (the fifth one in as many years) must take note of this model if
they want to avoid a future of soaring subsidies and flatlining passenger
numbers. It should be encouraged and rolled out across Britain’s intercity
network.
Next year ministers will create the state-run Great British Railways (GBR)
and say they want to see open access competition continue “where it adds
value”. The new evidence shows that it doesn’t just do this on a
significant scale, it also delivers a critical competitive discipline that
can help prevent any risk of GBR sliding into financial and sector decline.
The Office of Rail and Road (ORR) statistics show that where intercity
trains don’t compete for passengers they are expensive, require big
subsidies, have struggled to get their finances and passengers back since
Covid and endure poor passenger satisfaction.
Overall, rail income and journeys are down. The sector has not recovered to
pre-Covid levels, with one important exception — the East Coast Main Line
where real on-track competition delivers for customers. The line’s
state-run main operator, LNER, is the only intercity service that has been
able to increase its number of passenger journeys.
LNER had 21.2 million passengers in 2019-20 and 24.2 million in 2023-24. On
the rival West Coast Main Line, the monopoly operator, Avanti, is still
struggling to get passengers back. In 2019-20 it carried 37.5 million but
in 2023-24 only 32.8 million. On the Great Western Main Line numbers were
82.6 million in 2023-24, down from 97 million in 2019-20.
LNER is also eating into the subsidy it requires from government. In
2021-22 it needed £288 million from the taxpayer but last year this fell to
£39 million. LNER will soon come under GBR and if its growth continues,
alongside its competitors, then it can become subsidy free.
This model gives ministers a huge opportunity to get GBR right. Let’s hope
they take it.
Tony Lodge is a research fellow at the Centre for Policy Studies