Dr Hoo
Established Member
Although not explicitly using the term "unsustainable", in essence for Network Rail there is such a concept. Under Labour's Railways Act 2005 the Statement of Funds Available (SOFA) process was put in place. For each five-year Periodic Review the ORR is given a SOFA by the DfT covering the forthcoming five years (with a parallel process for Scotland). That is really a capped 'budget' for Network Rail to work within. Although early SOFAs allowed for enhancements they now only cover Operations, Maintenance and Renewal. Any investment in enhancements such as electrification may be announce and approved as a 'top up'. So one can infer that the SOFA is 'sustainable' (to the governments) over the period that it covers.And you've just illustrated why the Governments concept of "unsustainable", which seems to have been plucked out of its a**e, is meaningless.
With operator support/'subsidy' the problem is that it has tended to fluctuate all over the place, at least since Covid and has become very unpredictable. In principle there is nothing to stop the DfT ('aided' by the Treasury) setting a quasi-SOFA for this expenditure too although I note that they haven't done this. Be careful what you wish for!
Obviously they would be some rough edges or bespoke arrangements for Scotland, Wales, Merseyrail and operations under TfL.