The annual report from the Office of Rail & Roads shows that the funding and spending within UK Rail from 1 April 2017 to March 31 2018 was released on January 30th.
The report detailed the costs associated with running the railways in 2017-2018 an increase of 1.4% year-on-year to £20.6bn. However, income experienced a drop of 1.3% to £19.4bn, much of which was put down to a drop in passenger numbers of 1.4% while there was a drop of 2.4% in income from fares equating to £9.8bn.
The Office of Rail & Road has put the drop in passenger journeys down to the fact that engineering works at London Waterloo as well as strike action saw a decrease in journeys of 8%. Along with this, train operators experienced an income of £0.9bn from on-board catering as well as car parking and other sources, all of which increased by 2.3%.
The drop in income from fares was put down to lower returns to the UK and devolved government from train operators, leading to an increase of 8% in the form of government funding.
Train operators gave the government a net total of £0.4bn which is a drop of £0.3bn. This decrease was put down to a mixture of schedule changes within franchise agreements, plant cost increase on certain franchises, payments to some operators for delays on upgrades being made to infrastructure as well as a lower than expected revenue growth.
The government gave a total funding amount of £2.4bn to Network Rail with its costs increased to £8.6bn, a rise of 9.3%, much of which was put down to the rise in financing costs. There was also and amount of £0.4bn in performance based schedule 4 and 8 payments to train operators, which is an increase of 4.6%.
The overall costs for franchised operators decreased to £12.9bn, a drop of 1.6% and that was because they paid 12.1% less to government. However, staff costs increased for operators by 0.9% while the costs of rolling stock increased by 5.5% and other operating costs also increased by a total of 1.4%.
Dividends were declared by train operators that totalled £0.2bn which is a drop of 27% when compared to the previous year but there was an increase of 6.5% when compared to five years previously.