Two major projects receive the green flag this month as the coalition government ramps up its support for the railway industry.
Secretary of State Philip Hammond confirmed the new Intercity Express Programme would press ahead with Agility Trains the preferred bidder for the 4.5 billion pound project. The Great Western Main Line will be electrified from London Paddington as far as Cardiff.
The announcement came just as Network Rail confirmed it would not be paying bonuses to executive directors this year. Mr Hammond had questioned the advisability of high bonuses as recession-hit Britain copes with austerity measures aimed at reducing the last government’s billion pound budget deficit.
The bonus freeze will be seen as a constructive move by new chief executive, David Higgins. As public consultation begins on the building of Britain’s second high speed railway, High Speed Two, Network Rail revealed a 5% boost in station retail sales figures over last year.
This is in marked contrast to the high street figure which, according to the Retail Consortium, grew by just 0.4%. Basically the rail industry is the better place to do business. The high growth figures coupled with increased passenger volumes further support moves to invest in rail as a means of growing Britain’s commercial comeback.
Says Philip Hammond, ‘Our decision to buy a new fleet of trains and electrify new lines will allow rail passengers along the Great Western and East Coast corridors to benefit from massive improvements to journey times, more seats and more reliable services.
‘Alongside our plans for High Speed Rail, it completes a picture of massive upgrades to our intercity rail corridors over the coming years.’
