From HS2 to fare hikes, how will the announcements in Labour’s Budget impact Britain’s railways?
Chancellor of the Exchequer Rachel Reeves delivered her Budget in the Houses of Parliament on Wednesday. Here is a summary of the key points pertaining to Britain’s railways:
Train fares
Regulated train fares in England will increase by up to 4.6% from March 2 2025.
The increase in fares is one percentage point above July’s Retail Prices Index (RPI) measure of inflation, which until 2023 was used by Westminster governments to set the cap on annual rises in regulated fares.
A Budget document published by the Treasury stated that the 4.6% rise will be “the lowest absolute increase in three years”.
About 45% of fares on Britain’s railways are regulated by the Westminster, Scottish and Welsh Governments.
They include season tickets on most commuter journeys, some off-peak return tickets on long-distance routes, and flexible tickets for travel around major cities.
Train operators set rises in unregulated fares, although these are likely to be very close to changes in regulated ticket prices because the companies’ decisions are heavily influenced by governments due to contracts introduced because of the coronavirus pandemic.
Railcards
The Budget document also stated that the Government will “agree” to a £5 increase in the price of most railcards “subject to an industry proposal”.
The railcard for disabled passengers will be unchanged.
The Treasury said railcards, which generally cost £30 per year, save users an average of “up to £158” annually.
HS2
The Government is “committing the funding required” to begin tunnelling work to bring HS2 to London Euston station, the Chancellor announced.
In October last year, then-prime minister Rishi Sunak announced that extending HS2 from Old Oak Common, in the suburbs of west London, to Euston, near the centre of the capital, was reliant on private investment.
This was aimed at saving £6.5 billion of taxpayers’ money.
Major HS2 construction work at a site alongside the existing Euston station has been halted since the March 2022 due to funding doubts.
Ms Reeves said: “We are committing the funding required to begin tunnelling work to London Euston station.
“This will catalyse private investment into the local area, delivering jobs and growth.”
The Commons Public Accounts Committee issued a report in February stating it was “highly sceptical” that the Department for Transport would be able to attract private investment on “the scale and speed required” to make extending HS2 to Euston “a success”.
The Euston tunnel will carry HS2 trains between Euston and Old Oak Common, which is a distance of 4.5 miles.
It will be bored using two tunnel boring machines (TBMs) launched from the eastern section of Old Oak Common station.
The TBMs will operate 24 hours a day. In July, HS2 Ltd said tunnelling works would start from 2026 although that was “subject to change”.
Route upgrades
The Transpennine railway route upgrade between York, Leeds, Huddersfield and Manchester is secured under the Budget, the Chancellor announced.
Ms Reeves said the money would deliver “fully electric local and regional services between Manchester and Stalybridge by the end of this year, with a further electrification of services between Church Fenton and York by 2026 to help grow our economy across the North of England, with faster and more reliable services”.
The Chancellor continued: “We will deliver East-West Rail to drive growth between Oxford, Milton Keynes and Cambridge, with the first services running between Oxford, Bletchley and Milton Keynes next year and trains between Oxford and Bedford running by 2030.
“We are delivering railway schemes which improve journeys for people across our country, including upgrades at Bradford Forster Square, improving capacity at Manchester Victoria, and electrifying the Wigan-Bolton line.”
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