Network Rail Spending Plans 2024 – 2029

Introduction

As the impacts of climate change continue to pose significant challenges for infrastructure maintenance, Network Rail unveils its comprehensive spending plans for Control Period 7. Spanning from April 2024 to March 2029, this ambitious five-year strategy places a strong emphasis on addressing climate-related issues affecting vital components such as drains, cuttings, and embankments. With an allocated budget of £45.4 billion, Network Rail aims to sustainably operate, maintain, and renew its extensive network, encompassing 20,000 miles of track, 30,000 bridges, tunnels, and viaducts, as well as a multitude of signals, level crossings, and stations.

In this article, we delve into Network Rail’s strategic approach to combatting climate change while ensuring the resilience and reliability of the UK’s rail infrastructure for years to come.

Where is the funding coming from?

The funding for Network Rail’s ambitious spending plans primarily stems from multiple sources, reflecting a diverse financial landscape. The Department for Transport (DfT) shoulders a substantial portion of the financial burden, contributing £27.5 billion towards the allocated budget. Transport Scotland (TS) is committing £2.3 billion to support Network Rail’s initiatives within their jurisdiction. In addition to governmental contributions, access charges levied on train and freight operators contribute significantly, amounting to £13.8 billion. Network Rail further supplements its funding through commercial income streams, generating £1.7 billion.

What will the funding be spend on?

The funding has been divided into categories which are as follows:

• Operations (£4.4bn)
• Support (£5.3bn)
• Maintenance (£12.6bn)
• Renewals (£19.3bn)
• Industry costs (£2.0bn)
• Risk Funding (£1.8bn)

When the Statement of Funds was first announced the figures demonstrated that CP7 (2024-2029) had a small real terms increase in funding than CP6 (2019-2024). However, recent inflation means that Network Rail now has slightly less funding in real terms than it did in CP6.

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