By Jaimie Kaffash
04 June 2010
Train operating companies are being over-funded after passenger numbers failed to increase at the expected rate, auditors have revealed.
A National Audit Office report, released today, says use of rail services increased from 740 million passenger journeys in 1994/95 to 1.27 billion in 2008/09. The report adds that overcrowding has become an important issue, particularly for peak-time journeys to London.
The Department for Transport published its 30-year rail strategy in July 2007, making provision for more passengers and increasing funding to rail companies to £1.2bn from 2009 to 2014.
However, this failed to take into account the effects of the recession, which slowed the growth in passengers. The DfT overestimated the numbers travelling into London over the next few years by 15%. The figure for cities outside London was 23%.
National Audit Office head Amyas Morse said: ‘The Department for Transport used a broadly sound framework to develop plans for adding capacity to the rail network. These plans were developed in a stronger economic climate. We believe that it needs to implement these plans flexibly in light of current conditions, in order to protect value for money, and to be continually looking to drive down the costs of rail improvement works.’
The NAO recommends that the DfT invite private companies to bid for a ‘priced option’ to bear the risk of tackling overcrowding. It also calls on the Office for Rail Regulation to inform the department if there are big changes to passenger number estimates.
04 June 2010
Train operating companies are being over-funded after passenger numbers failed to increase at the expected rate, auditors have revealed.
A National Audit Office report, released today, says use of rail services increased from 740 million passenger journeys in 1994/95 to 1.27 billion in 2008/09. The report adds that overcrowding has become an important issue, particularly for peak-time journeys to London.
The Department for Transport published its 30-year rail strategy in July 2007, making provision for more passengers and increasing funding to rail companies to £1.2bn from 2009 to 2014.
However, this failed to take into account the effects of the recession, which slowed the growth in passengers. The DfT overestimated the numbers travelling into London over the next few years by 15%. The figure for cities outside London was 23%.
National Audit Office head Amyas Morse said: ‘The Department for Transport used a broadly sound framework to develop plans for adding capacity to the rail network. These plans were developed in a stronger economic climate. We believe that it needs to implement these plans flexibly in light of current conditions, in order to protect value for money, and to be continually looking to drive down the costs of rail improvement works.’
The NAO recommends that the DfT invite private companies to bid for a ‘priced option’ to bear the risk of tackling overcrowding. It also calls on the Office for Rail Regulation to inform the department if there are big changes to passenger number estimates.
