Thousands of railway jobs at risk, report warns

Thousands of railway industry jobs will be at risk unless government action is taken now on rolling stock orders for upgrade or replacement of the oldest trains on the network.

No significant rolling stock orders for new build or refurbishment have been placed in the UK since the HS2 order was announced in December 2021.
No significant rolling stock orders for new build or refurbishment have been placed in the UK since the HS2 order was announced in December 2021. - RIA

This is one of the findings from a new Railway Industry Association (RIA) report, which sets out how there are currently no orders for new or upgraded rolling stock in the UK, with the current orders set to end by 2026.

The report – ‘The UK Rolling Stock Industry – making 2023 the year of opportunity not crisis’ – highlights that the UK has the facilities to deliver modern trains with cleaner technologies including electric, battery, hydrogen and bi-mode, but in under 12 months major factories will start to run out of work.

The industry employs over 30,000 people who contribute at least £1.8bn to the economy, but the UK will not be able to upgrade or renew trains if the factories and skilled workers are no longer there.

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As well as job losses, the RIA highlighted that the absence of decision making in government will lead to worsening passenger experience due to ageing trains not being replaced, increased costs in the long-run, and limited deployment of green technologies. To avert these consequences, the report is urging that orders to replace or upgrade the oldest rolling stock are placed immediately.

According to the RIA, these orders would not require upfront public investment due to a proven private sector pathway to deliver new/upgraded rolling stock, with costs spread over time. The report said that costs are likely to be offset by preserving competition in the market, protecting UK skills and domestic production capability, and increasing revenues through better passenger experience.

In a statement, RIA technical director David Clarke said: “With the last mainline order being over three years ago and no visibility of new orders for upgrading or renewing rolling stock in the UK, we are once again facing the prospect of job losses and factory closures.

“These closures would have a deeply damaging impact, with jobs, passenger satisfaction, value for money and the drive to decarbonise all undermined by the upcoming trough in the ‘boom-and-bust’ funding cycle.

“This RIA report is clear that rolling stock orders are required now. These should be ‘no-regrets’ decisions for government as they wouldn’t require upfront taxpayer investment but would result in a broad range of benefits, from retaining jobs to immediate carbon and air quality improvement and a better experience for passengers.”