Network Rail 'could get £40bn for CP6' as inefficiency delays work

 

Updated: The Government has announced a direct grant to Network Rail of up to £34.7bn between 2019 and 2024, which it says will allow the infrastructure operator to spend nearly £48bn once its expected income is included.

The Government will give Network Rail a funding boost from 2019, according to reports, despite the rail regulator suggesting it has become less efficient, with nearly £4bn worth of improvements being deferred for lack of cash.

The Guardian reports that, following 'complex negotiations' with the Treasury, Network Rail is likely to receive over £40bn for Control Period 6 (CP6) from 2019 to 2024, compared with its current five-year budget of £38.5bn for CP5.

The paper states that this cash is likely to include financing for some projects that have lapsed during CP5 but not major rail enhancements, with additional financing for schemes such as the TransPennine route upgrade expected to be announced separately early next year.

”Local
Network Rail carried out an £800m upgrade at Waterloo in August

Both Network rail and regulator the Office and Rail and Road (ORR) declined to comment on the report. Transport Network has also contacted the Department for Transport for comment.

It comes as the ORR published its latest Annual efficiency and finance assessment of Network Rail, which discloses that the backlog of work is increasing at the infrastructure operator.

Network Rail ‘currently forecasts that by the end of CP5 £3.9bn of renewals work will be deferred to a later date’ and this ‘may affect the sustainability of the network and increase costs, in the medium and longer term’, the ORR reports.

The ORR also said that the efficiency of Network Rail’s core business activities has declined by 4.4% over the first three years of CP5, compared with the ORR’s assumption of a 13.7% improvement.

The regulator’s report puts the cost of this at the same value as the deferred work. It states: ‘We estimate that the cost of Network Rail not delivering as much efficiency as we expected is around £3.9bn, driven largely by higher than expected renewal costs.’

The ORR adds that Network Rail’s net debt increased by £4.6bn to £44.8bn in 2016-17. It states that a number of issues are likely to put pressure on Network Rail’s financial ‘headroom’ of £0.3bn and that it ‘needs to further develop its contingency plans to address these pressures’.

A spokesperson for the infrastructure operator said: ‘Network Rail continues to invest heavily in Britain's railways and we take our financial responsibilities seriously. Budgets are under constant review to ensure we maximise the value from every pound spent.

‘As a result, some non-essential work has been postponed and the money diverted into areas that will have more direct impact for passengers – improving train performance or helping to fund projects that expand and improve the railway.’

 

Also see

Register now for full access


Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login

 
comments powered by Disqus
 
 
highways jobs

Chief Executive

Luton Borough Council
Luton Borough Council
Recuriter: Luton Borough Council

Public Realm & Planning Team Manager

Camden London Borough Council
Up to £53,702
This is an exciting time for Camden’s Transport Strategy service! Camden, London (Greater)
Recuriter: Camden London Borough Council

Food Safety Environmental Health Officer

Camden London Borough Council
£35,913 - £41,657
As an Environmental Health Officer within Environmental Health, Business and Consumer Services... Camden, London (Greater)
Recuriter: Camden London Borough Council

Street Works Technical Officer

London Borough of Bexley
£20,667 - £24.999
We need a strong team player to assist the departments Street Works Team. Bexleyheath, London (Greater)
Recuriter: London Borough of Bexley

Food Safety Environmental Health Officer

Camden London Borough Council
£35,913 - £41,657
As an Environmental Health Officer within Environmental Health, Business and Consumer Services your focus will be food safety issues. Camden, London (Greater)
Recuriter: Camden London Borough Council

Project Manager and Research Officer

London Councils
£34,390 p.a.
Looking for a highly motivated, dynamic, enthusiastic and hardworking individual. London (Greater)
Recuriter: London Councils

Senior Development Engineer

Bristol City Council
£27,358 - £33,136
Bristol is an exciting, and culturally thriving Regional Capital City of Bristol
Recuriter: Bristol City Council

Executive Director Place & Economy

Peterborough City & Cambridgeshire County Councils
Competitive salary
The opportunity to combine major services across a city and a county to contribute to the delivery of future growth and Infrastructure Cambridgeshire
Recuriter: Peterborough City & Cambridgeshire County Councils

Head of Culture & Place

The Royal Borough of Kensington & Chelsea Council
up to £78,800 plus PRP
This could not be a more important time to join Kensington and Chelsea Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Director for Cleaner, Greener & Cultural Services

The Royal Borough of Kensington & Chelsea Council
up to £103,500 plus PRP
This could not be a more important time to join Kensington and Chelsea Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Director for Public Protection

The Royal Borough of Kensington & Chelsea Council
up to £103,500 plus PRP
This could not be a more important time to join Kensington and Chelsea Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Head of Democratic Services

Ealing London Borough Council
£58,650.00 - £61,737.00
Ealing is an exciting place to live and work, and local democracy is at the heart of its success. Ealing, London (Greater)
Recuriter: Ealing London Borough Council

Director of Development and Environment

North Somerset Council
circa £125,000 p.a.
We are looking for an experienced and enthusiastic individual to maintain momentum on delivery of our regeneration and placemaking aspirations Somerset
Recuriter: North Somerset Council

Development Officer/Senior Development Officer

Solihull Metropolitan Borough Council
£28,221 - £35,229 / £33,136 - £41,846
Seeking an individual to lead on all aspects of Highways advice to a busy Development Management team Solihull, West Midlands
Recuriter: Solihull Metropolitan Borough Council

Highways Asset & Maintenance Manager

Brighton & Hove City Council
£42,806 - £46,326
Looking to recruit a new Highways Asset and Maintenance Manager Brighton, East Sussex
Recuriter: Brighton & Hove City Council

Commercial Manager

Leicester City Council
£41,846 - £44,697
Seeking for a Comercial Manager to work for the Leicester City Council. Leicester, Leicestershire
Recuriter: Leicester City Council

Senior Highways Development Engineer

Leeds City Council
£37,107 - £39,961
Seeking to appoint an experienced highways engineer or transport planner. Leeds, West Yorkshire
Recuriter: Leeds City Council

Trainee Deputy Editor of Bridge Design & Engineering

Bridge Design & Engineering
£24,000-26,000
Bd&e is looking for a structural or civil engineering graduate with a passion for bridges. Dorset
Recuriter: Bridge Design & Engineering

Strategic Transport Project Development Officer

Hull City Council
£36.153 - £39.002
Would you like to work in the successful UK City of Culture? Kingston upon Hull, East Riding of Yorkshire
Recuriter: Hull City Council

Project Lead

Hull City Council
£45.181 - £48.563
Would you like to work in the successful UK City of Culture? Kingston upon Hull, East Riding of Yorkshire
Recuriter: Hull City Council