Qualified advisers answering your
Financial Questions
call 0800 092 1245

UK government agrees £150 million payment for FirstGroup

The UK government has agreed a further £150 million "investment" of UK taxpayer funds into the FirstGroup travel operation. This is the U.K.'s largest transport group with a particular interest in the UK rail network via its two franchises recently acquired from the government. It may not be well known, but the UK government has continued to subsidise these franchises despite the fact they are now under full control of FirstGroup.

A mixture of falling passenger numbers, reduced ticket price inflation and concerns about the UK economy in the short to medium term has seen the company approach the government about extra funding. The government has now stepped forward with an additional £150 million for this year which it believes should see the company through the most difficult part of the recession and leave the company ready, willing and able to expand in the future.

This comes at a time the likes of Stagecoach and National Express are also struggling yet the UK government has not been forthcoming with additional capital for these two transport companies. Whether we will see further investment in the UK transport system in the short to medium term remains to be seen but this is a vital area of the UK economy and one which needs to be nurtured back to life after a very difficult trading period.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details