Passengers contribute almost £100bn a year to local communities

Passengers contribute almost £100bn a year to local communities

Published 26 November 2024 | Average read time
3 min read
Stories Environment Industry-leading
Share
Share

As a rail customer, you contribute £98bn a year through spending within local communities, underscoring the huge social and economic value of our railway.

The railway enables over three million journeys a day – and they’re crucial to driving regional economic growth and achieving the government’s net zero ambitions.

You spend almost £100bn a year while travelling by train, while your rail journeys bring £26bn in economic, environmental and social benefits each year, according to a report published by industry body Rail Delivery Group.

The industry’s one of Britain’s biggest employers, too. It directly employs over 100,000 people across varying roles – from station staff and train drivers to underwater divers and seasons delivery managers. 

And it’s an important regional employer. For example, on one of our biggest projects – the Transpennine Route Upgrade in the North of England – we aim to hire 60% of staff from within 25 miles of the route.

Jacqueline Starr, chief executive of Rail Delivery Group, said: “The UK’s rail network does more than simply transport us from A to B; it plays a crucial role in driving economic growth by connecting businesses and communities, improving productivity, and supporting the transition to net zero.   

“Rail can and must be the backbone of the country’s future growth and environmental ambitions.”   

Growth

The rail industry has significant potential for growth, further bolstering the UK economy. Rail travel is expected to grow by an average of 1.6% annually over the next three decades, according to projections by the Railway Industry Association, thanks to economic and population growth. This would be equivalent to a 20% increase in rail usage by 2035, potentially raising the industry’s contribution from £26bn to £35bn.   

The total value of the rail industry would have the potential to soar to £46bn if rail usage increased by 40%. This would add £20bn to the existing £26bn contribution.

The rail industry is working together to unlock this potential by promoting the attractiveness of rail travel to our customers and improving day to day performance. We hope this will encourage a shift to rail – the greenest form of mass public transport – from other modes of transport.

Supporting the transition to net zero   

For every mile a person travels, passenger trains produce only about a fifth of the greenhouse gas emissions from the average petrol car.

This latest research finds a 40% growth in rail use is needed by 2035 to shift a minimum of four billion miles from car to train, to achieve the country’s net zero targets in line with the preferred pathway of public body the Committee on Climate Change.

A spokesperson for UKHospitality said: “This insightful report reinforces what we know about the importance of train travel for hospitality and tourism. Trains help bring our customers – domestic and international and our employees to our doors, so we can deliver great experiences and boost economic growth. 

“We are looking forward to working with the rail industry to further grow the opportunities to reach all parts of our nation and spread the benefits of the hospitality sector.” 

Read more

Community Rail: making a real difference

How travelling by train helps small businesses

The Green Travel Pledge