Britain’s rail industry is contributing up to £10.1billion in added value to the economy every year, a new report reveals.
According to research by economists Oxera on behalf of the Rail Delivery Group, rail and its supply chain also supports 216,000 jobs. The sector also pays up to £4 billion in tax to the public purse.
Entitled “What is the contribution of rail to the UK economy?”, the report says that:
- The rail sector benefits freight users and passengers by £14.3billion a year
- Roughly 7.7million tonnes of CO2 emissions are saved per year by using the railway rather than other types of transport – annual valuation of approximately £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
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.
“There is more to do to improve Britain’s rail services, but our network has been transformed in the last 15 years and our aim is to make it even better for passengers and businesses.”
Andrew Meaney, partner and head of transport at Oxera, said: “Our analysis makes use of a range of techniques to demonstrate the substantial and on-going 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.”