Network Rail ordered to cut £2bn worth of costs

Date: 12/6/2013

Network rail has been ordered to cut £2 billion from the £23.3 billion it initially planned to spend on its operations between 2014 and 2019.

The (ORR) Office of Rail Regulation analysed the company's costs and said that it should be able to meet its targets without having to plough as much money into various projects as was previously thought.

Indeed, the regulator explained that the firm is capable of improving safety standards and services while at the same time slashing £2 billion from its spending plans.

According to the ORR, "the implementation of new technologies, better management of the railways and more efficient ways of working" will enable Network Rail to make the necessary cuts without having a negative effect on the quality of train travel.

Richard Price, ORR Chief Executive, said: "We have set out what Network Rail and its industry partners will need to deliver between now and 2019 for passengers, freight customers, train operators, and taxpayers.

"Passengers will benefit from increases in capacity through a major programme of enhancements and improvements in punctuality, tackling in particular the worst-performing lines."

He added that the operator should see the challenges as an incentive to build on the success it has enjoyed in the past, as well as a reflection of the need to continue with the advancement of the nation's rail infrastructure.

Meanwhile a Spokesman for Network Rail acknowledged the importance of improving the UK's railways, highlighting that high levels of investment will remain vital to ensuring safety and service standards do not slip in the future.

He also said that the organisation needs to keep a tight rein on its budget in order to make the necessary efficiency savings in the coming years, while the ORR continued to apply pressure with calls for an increasing number of train services to run on time by 2019.

Posted by Mary Treen

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