Railways plans unveiled

Last Modified: 24 Jul 2007
By: Katie Razzall

Longer trains, new stations and less subsidy from the taxpayer in the Government's plan for the railways. So how much will fares go up?

Birmingham's central station is the perfect example of both the success of the rail industry and the problem - built to cater for up to 69,000 people, it now sees 100,000 passengers pass through it every day.

It is a positive sign of how many more of us are choosing to travel by train - but frustrating for travellers whose high fares don't translate into peaceful uncrowded journeys - and a challenge for those in charge.

More trains on the line will mean more passengers for New Street. Already, at least once a month, platforms here have had to close because its so crowded it's unsafe - that's typical of bottlenecks that are appearing across the rail network.

Birmingham's answer - an ambitious plan to rebuild the station - a larger concourse, better access to platforms, 42 escalators instead of the present five - this station upgrade a key part of today's White Paper.

Simplified fare structure

£150m to upgrade 150 stations
25 per cent cut in delays over 30 mins
Expansion of Reading station
£5.5bn Thameslink project

The Government's Rail Vision includes a simplified fare structure of just four ticket types - anytime, off-peak, super off-peak and advance - £150m to upgrade stations, a 25 per cent cut in delays of more than 30 minutes, £425m to expand Reading station and £5.5bn for the long delayed cross London Thameslink project.

The government wants the rail network to expand capacity by more than a fifth over the next seven years - but it's passengers who foot the bill for most of the costs - taxpayers subsidies will fall.

So who pays?

Currently the government pumps £4.5bn into the railways, subsidising big projects like the Channel Tunnel Rail Link.

Under today's plans, that funding will drop to about three billion a year from 2009, and stay around that level for five years. Passenger revenues will rise from nearly £7bn to £9bn over the same period.

At the moment fares make up half of rail revenue - by 2014 it will be three-quarters. A rise in the numbers paying fares won't cover the shortfall - and the government's capping regulated fare increases at 1 per cent above inflation.

But haven't we heard big talk of rail's bright future before? The former Deputy Prime Minister launched a 10 year transport plan not once but twice before - and the government's strategic rail authority did the same a couple of years later.

The conservatives argue none of the previous promises - on overcrowding, delays or better fares - have been delivered. The man in charge of the rail network says this time it's different.

Whether passenger needs are addressed another question - so far rising fares have aggravated but not turned people off the railways - the government's strategy depends on that remaining the case.