Train companies receiving billions in taxpayers’ support

date: 15 April 2014

embargo: 00:01 hrs Wednesday 16 April 2014

Train companies receiving billions in taxpayers’ support

Commenting on today’s (Wednesday) report by the Office of Rail Regulation, which reveals that the UK rail industry received over £4bn in government support last year, TUC General Secretary and chair of Action For Rail, Frances O’Grady said:

“Today’s figures show just how dependent rail firms have become on the public purse. All bar one of the UK’s private train operators rely upon public subsidies to run services.

“Taxpayers’ money that should be spent on improving services is instead being siphoned off into shareholders’ pockets. The three largest dividend payers – Northern Rail, Transpennine Express and Virgin Trains – together paid out nearly £100m last year after receiving over £1bn in public funds.

“Rail franchising is failing both passengers and taxpayers. The government’s determination to re-privatise the East Coast Mainline – even though it is delivering the biggest cash surplus of all – shows it has learnt nothing from past mistakes.

“This report clearly shows how public ownership remains the best value for money for taxpayers.”

NOTES TO EDITORS:

-Taking direct government subsidy (franchise payments) and indirect subsidy (Network Rail grant) together, there is only one private train operator that is not a net recipient of government funding, South West Trains.

- Publicly owned East Coast returned a net surplus of £16m to the government. South West Trains was the only private operator to provide a surplus, at around £5m.

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