On the face of it, the new Conservative – Liberal Coalition government has emphasised its commitment to the rail industry, giving the green light for the establishment of a new High Speed Rail Network. But details of the transport budget have yet to be confirmed, and will not be wholly understood until the Full Coalition Agreement is put into practice.

 

Leading Rail recruitment specialists ATA Rail, warn that commitment to a High speed rail line may mean cuts for other parts of the rail network, long before work on the new line begins. There have already been reports of the coalition going against rail commitments previously made under the Labour government.

 

This includes a £200m overhaul project of the Preston to Manchester line which was set to be electrified under the Labour administration, and is reported will be shelved under the new government. Theresa Villiers, Minister of State for Transport, has refused to confirm this scheme, stating that she could not “give a guarantee that any scheme would go ahead under a Conservative government”

 

The High Speed Rail network would link London to Birmingham, Manchester and Leeds, freeing up the old tracks for use by freight and local trains and cutting rail journey times. It is set to form a part of the government’s new green policies and could be a source of new jobs for those affected by recent redundancies in firms such as Jarvis.

 

Managing Director of ATA Verticals, Gary Hewett commented “If the new government keeps its promises to invest in the public transport budget as one of its ‘green measures’ it would certainly be welcomed by firms throughout the rail industry, creating new jobs and strengthening the stability of firms, from rail operators, to recruitment agencies such as ourselves.

 

“But problems could be two fold; firstly the timescale under which the government will introduce the high speed line, and secondly the cuts that will be made to other parts of the network, which could mean job losses in the short term.

 

“In theory the environmental aspects of the new coalition should stimulate a shift to spending on public transport, with the effects of this rippling through to firms directly involved within the rail industry and their suppliers. In reality it will be necessary for firms such as ATA Rail and our clients to sit tight and see if such promises come to fruition.”