Qualified advisers answering your
Financial Questions
call 0800 092 1245

Can the UK government afford the East Coast main line?

The UK government has been forced to take back ownership of the East Coast mainline rail franchise after former operator National Express failed to balance the books. However, there is now great concern that under the ownership of the UK government it could cost taxpayers more than ever before to travel on this particular line. Indeed there are already signs that ticket prices will be increasing in the short to medium term as the government looks to reduce taxpayer liabilities to the rail network as soon as possible.

The truth is that the UK rail network was franchised for reason, to transfer the liability and investment costs to franchisees. However, due to a mixture of growing investment requirements and falling passenger numbers, the recession would appear to have been the final nail in the coffin of National Express. There is great concern that more franchise holders will follow suit in due course unless the rail regulator allows them to increase prices in the short to medium term to make up any shortfall in funding.

Since inflation came under significant pressure, after the credit crunch, price reductions have actually been negative due to the pricing formula afforded to the sector. There will need to be significant changes to make this a viable business opportunity for the future.

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