UK Budget offers scant rewards for freight sector

Despite a record number of individual fiscal measures, the UK Budget, delivered by Chancellor John Healey, offered few new incentives for the rail sector. Rail freight can point to an extension of the reduced red diesel duty rate, while the wider railway receives a review of infrastructure costs and several regional investment commitments. The most prominent new rail development named in the Chancellor’s speech was Cardiff Parkway station, with £30 million (€35.9m) allocated to progress the project.

Although parts of the rail industry welcomed the Budget speech, delivered on 28 October in the UK Parliament, political commentators described a cautious package dominated by relatively small measures. The rail supply chain continues to seek an end to “stop-start investment”, with greater certainty over future work. While the Budget announced no new dedicated rail freight funding scheme, industry representatives recognised that the Government’s wider railway plans could support economic growth, jobs and connectivity.

The Chancellor’s first Budget speech came amid competing headlines, including the appointment of Jude Winstanley as chief executive of GB Railfreight and the serious rail accident in Spain. For many industry insiders, the GBRf appointment of its new CEO (Jude Winstanley) was a significant development for the freight sector. Meanwhile, the wider economic debate centred on whether the Chancellor’s 98 individual measures amounted to a coherent programme for growth, or a collection of relatively modest interventions.

This story was originally published by RailFreight.com. Read the full story at RailFreight.com →