Hello and welcome to the December newsletter
The financial and economic performance of our rail network really matters for users, funders and the wider economy. Given the recent challenges from inflation, climate change and weather, industrial action and recovery from the pandemic, this has never been more important.
In October we published our Annual efficiency and finance assessment of Network Rail 2024. Despite the pressures on the rail network over the last five-year control period, Network Rail delivered £4.0 billion of efficiency improvements.
Looking ahead to the latest five-year control period (CP7), we will be holding the company to account on its £3.9bn efficiency target (in cash terms) which follows from our final determination of the periodic review (PR23) last year. More recently, we commissioned an independent report on Network Rail’s efficiency plans for the first two years of CP7 which found that its plans are broadly robust.
However, we do have concerns about how Network Rail is managing the funding pressures on its plan over the current five-year control period and have recently written to the company about this.
In addition to our work on the economic regulation of Network Rail, our official statistics are an important barometer of the financial health of Britain’s railways and last week we published our rail industry finance (UK) statistics.
In the latest year, passenger journeys and fares revenues continued to increase, but remain short of pre-pandemic levels. Between April 2023 and March 2024 revenue from fares rose by 14% to £10.4 billion compared to the previous twelve months, but at a slower rate than passenger journeys, which rose 16%. Fares income is also 18% below pre-pandemic levels and our figures show that government support remains substantial, at just under half of the income required for the day to day running of the railway.
This illustrates more than ever the importance of securing value for money for passengers, freight users and funders. Therefore, a continued priority for us is working with Network Rail and other stakeholders on robust financial monitoring, reporting and holding to account.
Will Godfrey
Director of Economics, Finance, and Markets
Top stories
Station usage: Elizabeth line influence continues
In November, we released our annual station usage statistics which showed how the impact the Elizabeth line has continued to drive massive increases in usage at certain stations. To which, London Liverpool Street station has retained its title as Great Britain’s most used railway station in 2023-24, gaining more than 14 million entries and exits since the previous year – taking the total to nearly 95 million entries and exits. Denton railway station in Greater Manchester meanwhile becomes the least used station in Great Britain, at just 54 entries and exits.
The busiest stations in England outside of London were Birmingham New Street (33.3m), Manchester Piccadilly (25.8m) and Leeds (24.9m).
The busiest stations in Scotland were Glasgow Central (25.0m), Edinburgh Waverley (21.3m) and Glasgow Queen Street (14.5m)
The busiest stations in Wales were Cardiff Central (11.5m), Newport (2.7m), and Swansea (2.2m).
ORR approves new Go-op train service
We have approved new co-operatively-owned train services by Go-op, set to connect Swindon, Taunton, Weston-super-Mare, Westbury, and Frome from late 2025, with a deadline to begin operations by December 2026. ORR’s decision supports increased competition and enhanced regional travel options, with the UK’s first co-operative operator set to compete with Great Western Railway. Go-op must however meet strict conditions, including securing finance, rolling stock, and funding level crossing upgrades, by November 2025. We will continue to monitor Go-op’s progress to ensure readiness.
Improving the Reliability of Station Help Points
We have urged station operators to enhance the reliability and management of station help points, following our report which highlighted significant issues with service quality across Great Britain’s rail network.
Help points, available at 83% of stations, provide passengers with access to journey information, assistance, and emergency support. However, a quarter of stations audited in England between April 2023 and August 2024 had non-functioning help points, and inconsistent testing practices have delayed repairs., Poor mobile coverage in remote areas also risks undermining alternative freephone services at unstaffed stations.
We have called on operators to assess risks at unstaffed stations, improve monitoring practices, and ensure timely preparation for the 2027 analogue landline switch-off. Actions taken will be reviewed in early 2025 to ensure improved service reliability and passenger support.
Regional Variations in National Highways’ Performance Highlighted
We have launched an interactive dashboard to track National Highways’ performance across England, focusing on themes such as safety, reliability, maintenance, and environmental responsibility. While 96% of England’s strategic road network meets road surface condition targets, regional disparities persist, with the East of England lagging behind at less than 93%. Increased delays were observed nationwide, with the South East experiencing the highest average delays, driven by a 2.3% rise in miles travelled in 2023. The dashboard provides transparency into these variations, supporting accountability and informed improvements across regions.
Social media channels
We’ve just launched a new Instagram account, following on from our other social media channels LinkedIn and X/Twitter. We’ll be posting regular updates on news, events and life at ORR.
You can find us at Instagram.com/officeofrailandroad
Statistics
In November we published the following statistics:
- Estimates of station usage - Annual (2023-24)
- Regional rail usage - Annual (2023-24)
- Rail industry finance (UK) - Annual (2023-24)