How much does it cost Network Rail to run the railways in 2026?

[thenorthern]

On Youtube a recommendation came up which was "Nick and Margaret: The Trouble with Our Trains" from 2015. Basically it was Nick Hewer and Margaret Mountford of The Apprentice fame looking at how to maintain the railway. There is a link to it below.

In it they mentioned that Network Rail expenditure was £100m per week. This was in 2015 but I was wondering how much Network Rail spends every week now? Inflation will have almost certainally pushed up that figure by quite a bit.

Also is it public that the expenditure is broken down?

 

[The Planner]

On Youtube a recommendation came up which was "Nick and Margaret: The Trouble with Our Trains" from 2015. Basically it was Nick Hewer and Margaret Mountford of The Apprentice fame looking at how to maintain the railway. There is a link to it below.

In it they mentioned that Network Rail expenditure was £100m per week. This was in 2015 but I was wondering how much Network Rail spends every week now? Inflation will have almost certainally pushed up that figure by quite a bit.

Also is it public that the expenditure is broken down?

It can only spend what the ORR agrees in its final determination for the control period which was £43.1 billion for CP7. If that was divided equally its 8.6 billion a year or 166 ish million a week.

 

[JamesT]

It can only spend what the ORR agrees in its final determination for the control period which was £43.1 billion for CP7. If that was divided equally its 8.6 billion a year or 166 ish million a week.

And for comparison purposes, the Bank of England inflation calculator reckons £100 in 2015 is £140.75 as of March this year. (Using CPI).

 

[thenorthern]

And for comparison purposes, the Bank of England inflation calculator reckons £100 in 2015 is £140.75 as of March this year. (Using CPI).

We know that rail fares often increase more than inflation does.

Jokes aside it was mentioned at that point in the documentary that we have the safest railway in Europe but the cost of having the safest railway in Europe is expensive. At the end of the day passenger safety is and always should be the main priority Network Rail and the TOCs, If maintaining the railways costs £166m a week to ensure we can have the safest railway in Europe, then I am happy with that.

 

[styles]

And for comparison purposes, the Bank of England inflation calculator reckons £100 in 2015 is £140.75 as of March this year. (Using CPI).

Probably should use RPI like everything else on the railway seems to.

As of January this year that would peg to £158.07.

 

[LickeyIncliner]

Probably should use RPI like everything else on the railway seems to.

There are a lot of agreements, contracts etc which adjust things in line with RPI. not just on the railways. They're the only reason RPI is still estimated - CPI is regarded as the better measure of inflation

 

[styles]

There are a lot of agreements, contracts etc which adjust things in line with RPI. not just on the railways. They're the only reason RPI is still estimated - CPI is regarded as the better measure of inflation

Usually when the person writing the contract is the one who benefits from using a rubbished but higher rate of inflation, yeah. See for example, a lot of landlord contracts.

 

[Gerald Fiennes]

As well as what ORR allows NR to spend, it also get direct grants from HMG to cover enhancement spend (ie. largely TRU at present). Possibly of the order of £1.25-1.5bn/year at present across all programes, ie. another £25m or so a week. And its interest bill (on top of this is also considerable.... something Nick Hewer might have made some ref to in that programme ie 'What kind of balance sheet is this?!!!')