RIA Submission: Transport Select Committee Inquiry into the Integrated Rail Plan January 2022 1. INTRODUCTION 1.1. This submission constitutes the response from the Railway Industry Association (RIA) to the Transport Committee’s inquiry into the Integrated Rail Plan (IRP). 1.2. RIA is the trade association for UK-based suppliers to the UK and world-wide railways. It has over 300 companies in membership covering all aspects of rolling stock and infrastructure supply and covering a diverse range of products and services. As well as most of the Tier 1 contractors and large, multi-national companies, over 60% of RIA’s membership base is comprised of SMEs, based across the UK. 1.3. RIA’s 2021 Oxford Economics report shows that the UK rail sector was growing before the Coronavirus pandemic, with the rail industry supporting £43 billion Gross Value Added in economic growth compared to £36.5 billion in 2016, 710,000 jobs - compared to 600,000 in 2016, and £14 billion in tax revenue compared to £11 billion in 2016. The report also shows that the rail sector is an economic catalyst – for every £1 spent in rail, £2.50 of income is generated in the wider economy.1 1.4. In the submission below, we have set out the main implications for the rail supply chain from the publication of the IRP and have therefore not answered some of the questions set out. 2. EXECUTIVE SUMMARY 2.1 The IRP was published by the Department for Transport in November 2021, setting out the Government’s plans for rail investment in the North and Midlands. This was nearly a year after it was expected. Its publication, in and of itself, at least ended the uncertainty about what it contained. 2.2 It confirmed £96bn of funding, including around £35bn of new funding, for the delivery of HS2 Phase 1, 2a and 2b Western Leg, a revised Northern Powerhouse Rail and full electrification of the Midland Main Line (MML) and Transpennine Route Upgrade (TRU). Upgrades to the East Coast Main Line alongside a number of other smaller schemes, were included. 2.3 Whilst the funding included in the IRP is welcome, RIA and our members were disappointed to see yet further major changes to plans for the railways in the North and Midlands. We highlighted that it is difficult to see the IRP as anything other than a piecemeal approach to national strategic railway planning2 - given it was only in 2020 that Prime Minister Boris Johnson and the Cabinet publicly supported delivering the HS2 and Northern Powerhouse Rail schemes in full, given the capacity, connectivity and economic benefits they bring. 2.4 Even if the Government claims in the IRP it can deliver benefits more quickly with upgrades to the current network, there are questions over how certain the railway industry can be that the IRP will actually be delivered. There is particular uncertainty amongst rail businesses given the changes to past rail investment plans. It was also a concern that the evidence to underpin the Government claims on timings, capacity and pace have not been made available. 2.5 Whatever schemes do proceed, RIA and rail businesses will of course work with the Government to take them forward, yet such changes to investment plans every few years hinders the ability 1 2
The Economic Contribution of UK Rail, Oxford Economics, September 2021 Rail industry responds to 'piecemeal' Integrated Rail Plan, RIA, November 2021
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