....
How are the likes of Tesco and Sainsburys treated? HQ’s in the South East but big turnovers elsewhere?
More to the point how are outfits like Amazon UK, Apple UK, Starbucks et al treated, well they don't do any business here do they
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How are the likes of Tesco and Sainsburys treated? HQ’s in the South East but big turnovers elsewhere?
london is prettty distorted, GVA per head of inner london is £127k but for outer london its only 12.3k which is nearly 50% lower than any other Uk region. london is also the highest consumer after Wales, Scotland and Northern Ireland consuming 107% per head of national spending average.
...in my last job I was resident in Yorkshire, the payroll office was in Derbyshire, the tax office in Glasgow, the registered office in EC1 and my staff lived and carried out work throughout the UK. Head office had minimal staffing and my boss based himself in East Anglia. Wheres the value added?
I don't know exactly how they do it, but all companies have to make statistical returns to the government and there are VAT returns to cross check the information.
Naturally they won't be 100% accurate, but they certainly won't be based on where the registered office is or where the payroll is carried out.
I don't know exactly how they do it, but all companies have to make statistical returns to the government and there are VAT returns to cross check the information. Naturally they won't be 100% accurate, but they certainly won't be based on where the registered office is or where the payroll is carried out.
“Beeching throwbacks”? How quaint, you’ve come up with a nickname for those who don’t share your viewpoint.
I prefer “realists” though
Agenda?
You’re getting in to conspiracy theory territory again.
However the maintenance/ technical costs of a section of the WCML will be paid for by potentially dozens of trains each hour (passenger and freight) – which will all add up.
The double track “Little North Western” sees only five passenger trains a day in each direction – which means that its maintenance/ technical costs are having to be taken from a pretty tiny number of services (I can’t remember seeing any freight over it – is there any?).
If you want track access charges to reflect is the level of maintenance on a route, maybe the reverse of your argument is true and the cost of running a service should reflect the total maintenance/ technical costs for that line, divided by the number of trains that serve it?
Northern do run a threadbare service on a few lines that have no other services, which means that all of the costs for those lines are incurred to provide the infrastructure for those infrequent services to run.
The fact that they’ve been paid for over the years doesn’t automatically mean that they ought to be free now – if it did, there’d be no rented houses over twenty five years old!
Plenty of other TOCs have ex-BR stock (that has similarly been “paid for”) too.
Because there are savings to be made?
Because, more importantly, there are better uses for the existing stock? We’ve plenty of lines where people are forced to stand, but we have stock tied up running routes for “one man and his dog” for the sake of keeping a virtually redundant bit of railway open.
The problem with that metaphor is that it only works if the “rivets” can only go down in number. If there were a finite number of “rivets” (and one which could never be replenished) then fair enough, ever “rivet” is precious. But passenger numbers are going up (and up).
Instead of your “rivets” metaphor, think of the railway as a garden. Various plants are competing for resources (sunlight, soil, water...) and there’s not enough room for all of them to get everything that they want. We are spending too many resources on stagnant bits of the garden, when we could make room for plants with lots of life in them to expand.
There’s theoretically untapped growth on every line in the UK, but that doesn’t mean that meeting that growth is always viable.
We’ve seen around a third more capacity on Northern services over the past decade, yet the “no growth” argument is always trotted out.
Same with the Wales & Borders franchise – it was let on a “no growth” basis, but has seen an increase in trains/ services.
I think that most people can see a station that has little hope of getting decent passenger numbers.
Brigg is never going to have huge numbers, even if you ran a half hourly service from Sheffield to Cleethorpes that way, the low population/ rural area mean it wouldn’t attract significant passenger numbers.
Let go, and let’s focus our efforts/ resources on stations/ lines where passenger numbers are growing!
Following your twisted logic, the only way you’d accept closing a station would be if that station already had a frequent service (since you can’t close a station that doesn’t have a good service)?
It also misunderstands (again) what Variable Track Access is paying for. It is not paying for the cost of signalling; that comes from Fixed Track Access. And the wear and tear on LNW per train will be the same as on the WCML.
Perhaps under CP4 the FTAC wasn't spread fairly, but that is not true for CP5. So Northern is no longer hard done by, but still picking up the largest subsidy from DfT.
ScotRail is not subsidised by DfT, as I have pointed out numerous times. Holyrood has a completely different attitude to Rail compared to Westminster.
You cannot really compare ATW with Northern either, even if you ignored the effect of the Welsh Assembly. Northern has several of the biggest cities in the UK within its area; the only big city in Wales is Liverpool...
I've seen the loadings for Northern; the only places with heavy traffic are peaks to Manchester & Leeds, with Liverpool noticeably busier than the rest. Take out the big cities and I feel sure that the subsidy per passenger km for the rest would 'beat' Wales.
This thread has been depressing at times with the constant wallowing in self-pity from some. There have on the other hand been quite interesting dialogues particularly between supporters of various northern interests. Its been quite clear that those in the north can't agree amongst themselves what is really wrong there let alone how it should be fixed.
Then there are the few who regularly chip in with worthless facetious remarks about such things as the 'London Government', (can they really mean the GLA?) or 'London's cast offs' etc. etc..
After 1400 posts, the debate has revealed some important facts that are drowned out by irrelevant drivel and whinges, so effectively, it's just been one long rant.
My comment is more about the negativity of the debate and the insistence of some to play the broken record. I believe that public transport is the long-term answer to personal travel in most areas of the UK, except maybe the most rural parts. I think that the large investment taking place across the north is a good thing and should continue. The government, to most commentators' surprise have committed to historical levels of investment which once in place will benefit those areas. Some of the posters here are obsessing about not getting brand new trains for these services and claiming that forcing northern passengers to travel in 'London's cast-offs' is tantamount to persecution. That then leads them into yet another tirade of north vs south victimhood.
The fact is that the wires and the civil engineering associated with the current electrification work will be there for many decades. The trains will a) perform much better than the hotch potch of DMU stock currently pressed into service and b) have a finite serviceable life that will drive the TOCs and ROSCOs towards replacement as soon as they start hitting the bottom line, witness the AM4s, 5s and 8s in the '90s.
Like it or not, all investment comes under conditions of meeting certain cost benefit tests and continued insistence on new stock because somebody else has got it will just put brakes on further investment, especially once the election is over. The south-east has had exactly the same treatment over the years, the current position is that the 2 high profile schemes both require uniform fleets for the service to deliver. That can only be met by supply of new trains. That stock may look flashy on the outside but I think there will be more than a few moans about the spartan accommodation of both the 700s and the 345s when they are rolled out. They are fit for moving large numbers of passengers about, they are not luxury saloons for the privileged Londoners.
Funnily enough, the majority of "parliamentary" services such as the Brigg and the Knottingly - Goole line and Stockport - Stalybridge are used quite heavily as freight routes, so the true cost of running a passenger service isn't anything like as astronomical as you like to make out. Settle Jnc - Carnforth admittedly doesn't carry much freight, but this service shares the majority of its route with the Settle Carlisle which is a freight corridor, so perhaps we should see the final section to Carnforth as a loss leader, for the greater good of the wider network.
Well, no, the point is, that the cost of the railway in the North has been over charged as NR have conceded, and this will have fed into the subsidy that has been paid and this will undoubtedly have contributed to the toxic political atmosphere that has led to the lack of investment. CP5 only started this year, so I find it highly unlikely that any reduction of subsidy will have fed into the Department of Transport mindset by now.
But by the same token, if you included a few main lines in Northern, its subsidy would go down. I also don't really buy the idea that we somehow can't compare our situation with Scotland and Wales. We regularly compare our railway with others in Europe, so to say we can't with other railways within the United Kingdom is a nonsense. If the Scottish example serves to highlight the backward nature of Westminster policy then so be it.
This is true for most TOCs, if not all. However there is also a large amount for the additional infrastructure works carried out in Scotland, including new stations, Borders, etc.Scotrail recieved the highest subsidy, £493.8m a 69.7% increase on the previous year, this was due to being profiled over the 5 year control period and it being the last year.
One reason for the above is the growth of the off-peak market in the SE. Off-peak fares, particularly Advance Purchase and other special discounts (e.g. 2 for 1) have been very popular. That the margin has decreased is not necessarily bad news...To be honest the ORR figures for trend in rail fares/revenue per passenger were surprising, I didnt expect to see the huge fall in revenue per passenger in London last year or a 15% difference in revenue per passenger trend between LSE and Regional since 2004. The data clearly shows that over the last 10 years operating margins on LSE passengers have been falling while for regional margins have been rising, belying the suggestion that we need to create a trend of faster rises, the evidence shows this has already been occuring for the last 10 years.
Before inflation:
Scotrail subsidy was 17.5p per passenger km (+6.7p increase per passenger km)
Arriva Trains Wales was 13.1p (+0.98p)
Merseyrail 12.69p (+0.3p)
Northern Rail 7.79p (+0.6p)
TPE 3.7p (+1.1p)
London Overground 3.56p (-1.7p)
London Midland 2.8p (+0.15p)
Southeastern 2.23p (+0.3p)
Crosscountry 1p (+0.4p)
EMT 0.1p (unchanged)
Network Average -0.07p (+0.6p)
C2C -0.4p (+1.3p)
Chiltern -0.4p (-1p)
FGW -1.28p (+1.5p)
Virgin -1.63p (unchanged)
Southern -3.64p (+1.3p)
Greater Anglia -3.68p (-0.3p)
Southwest -5.16p (+0.3p) (highest franchise payment)
FCC -5.27p (-0.1p) (lowest operating costs)
To be honest the ORR figures for trend in rail fares/revenue per passenger were surprising, I didnt expect to see the huge fall in revenue per passenger in London last year or a 15% difference in revenue per passenger trend between LSE and Regional since 2004. The data clearly shows that over the last 10 years operating margins on LSE passengers have been falling while for regional margins have been rising, belying the suggestion that we need to create a trend of faster rises, the evidence shows this has already been occuring for the last 10 years.
As I mentioned 2013/14 rail industrial financials were released by ORR.
Government received a net franchise payment of £40m down from £420m in 2012/13, this is down to three elements, less premium from the direct awards, increased numbers of rail services/strengthening to deal with overcrowding commissioned by PTE's and Crossrail infrastructure spending. Private investment in the railways fell by 10% to £423m (76.2% of this figure is new rolling stock leasing costs, 6.8% is investment in stations, 17% is IT and web systems, there was no private investment in track infrastructure this year), again this is primarily due to direct awards. Government investment rose by £227m to £5,287m, around 2% after inflation. PTE grants were £182m, an increase of £18m. The network grant was £3,453m a £327m fall. Government support for non core projects totalled £1,692m, a £156m increase, of this figure £1.1bn (65%) is government Crossrail spending. Rail freight grants were £17m.
Average increase in ticket prices was 2.7% a real terms fall of 0.1% after inflation. London and South East fares grew by 2.8% and 3.1% in season tickets, Long distance fares rose 2.5%, advance fares rose by 2.3% and regional fares rose by 2.4%. Anytime fares rose by 2.6% and offpeak by 2.1%, together these two ticket types make up 70% of national revenue. Since 2004 Long distance fares have risen by 67.9%, LSE by 58.7% and regional by 57.6%.
Figures per passenger journey
LSE
Fare increase last year 2.8%, real terms change 0%, real terms change since 2004 +15%
Revenue decreased by -1.4% last year, -4.1% fall in real terms revenue, real terms revenue has -6.5% since 2004
Long Distance
Fare increase last year 2.5%, real terms change -0.3%, real terms change since 2004 +21.7%
Revenue increased by +2.9% last year, +0.1% increase in real terms revenue, real terms revenue -7.6% since 2004
Regional
Fare increase last year 2.4%, real terms change -0.4%, real terms change since 2004 +14.2%
Revenue increased by +2.1% last year, -0.7% decrease in real terms revenue, real terms revenue +7.4% since 2004
In London decreases in anytime and off peak fares more than cancelled out increases in season and peak fares causing a net reduction in revenue. Offpeak travel made up 70% of revenues in regional, in LSE the majority of revenue comes from Season tickets.
Scotrail recieved the highest subsidy, £493.8m a 69.7% increase on the previous year, this was due to being profiled over the 5 year control period and it being the last year.
Before inflation:
Scotrail subsidy was 17.5p per passenger km (+6.7p increase per passenger km)
Arriva Trains Wales was 13.1p (+0.98p)
Merseyrail 12.69p (+0.3p)
Northern Rail 7.79p (+0.6p)
TPE 3.7p (+1.1p)
London Overground 3.56p (-1.7p)
London Midland 2.8p (+0.15p)
Southeastern 2.23p (+0.3p)
Crosscountry 1p (+0.4p)
EMT 0.1p (unchanged)
Network Average -0.07p (+0.6p)
C2C -0.4p (+1.3p)
Chiltern -0.4p (-1p)
FGW -1.28p (+1.5p)
Virgin -1.63p (unchanged)
Southern -3.64p (+1.3p)
Greater Anglia -3.68p (-0.3p)
Southwest -5.16p (+0.3p) (highest franchise payment)
FCC -5.27p (-0.1p) (lowest operating costs)
To be honest the ORR figures for trend in rail fares/revenue per passenger were surprising, I didnt expect to see the huge fall in revenue per passenger in London last year or a 15% difference in revenue per passenger trend between LSE and Regional since 2004. The data clearly shows that over the last 10 years operating margins on LSE passengers have been falling while for regional margins have been rising, belying the suggestion that we need to create a trend of faster rises, the evidence shows this has already been occuring for the last 10 years.
I don't claim to know the DfT mindset, but there has been a changing of the guard and DfT are certainly aware of the Track Access charge situation. I think it's more about what their political masters want.
What Scotland does is different. I'm not saying you can't compare, but you can't compare and pretend that it's like for like. If Westminster followed the Scottish line then the subsidy for Northern would be much larger. Regardless of whether you think that would be money well-spent, you have to acknowledge the truth of that.
Interesting to note that 70% of Regional Railway's revenue is from off peak fares. This rather suggests to me that it is far from the "rich man's toy" that some polititians make out.
yorksrob said:Interesting to note that 70% of Regional Railway's revenue is from off peak fares. This rather suggests to me that it is far from the "rich man's toy" that some polititians make out.
Offpeak travel made up 70% of revenues in regional, in LSE the majority of revenue comes from Season tickets.
Why is TPE so bad in subsidy terms - it serves 7 of the largest cities (and a major airport) in the UK using modern rolling stock, so it ought to be in the same league as XC financially, but it's much worse (3.7p versus 1p) ? Is it just that people prefer to drive on the M62/M6/A1(M)/M1 instead ?
Which suggests that the railway system in LSE is rather more important to the 'work' economy of the LSE region than in other parts of the country, since season tickets are normally bought by people who have to use the train to get to/from work.
Yeah the view being that while its always been seen that way around London up North its not been seen as a valid working class travel choice until recently, for the last hundred years while upper middle class were happy to commute in from their houses in Cheshire, the Lake district, etc.. it didnt attract the ordinary working class, making it be seen as a valid travel choice and increasing revenue and ridership means raising standards to an acceptable level that lures people out of their cars, since there isnt the London parking/C Charge financial disincentive to car usage outside the largest city centres. People arent going to make a choice to switch to rail if the user experience is 30 minutes standing on a crowded Pacer. On the plus side there is evidence that that kind of attitude of your housing bang goes further the further you are from a city centre and a premium to proximity to metro stations is starting to take hold.
The roads have mostly been good yeah, Manchester for example has an innner and outer ring road. Its only really the route across the Pennines thats really been under invested and can be closed in bad weather particularly for high sided vehicles. The widest stretch of motorway in the country is a stretch of the the M61 near Linnyshaw Moss where the M6, M61, A580 and A666 meet which is 17 side by side lanes. You do get some peak traffic jams on Motorways though, for example over the Manchester Ship Canal at the Thelwall Viaduct, the M6 around Preston, and the M56 near Manchester Airport will be over its rated capacity from next year.
Part of the £15bn transport plan put forward by the One North was asking for all the motorways in the region to be upgraded to managed motorways (i.e. hard shoulder becomes extra operating lane and variable speed limits to maximise throughput) to deal with future projected growth in passengers and freight in particular as is already happening to the M60 J24-27 and 1-4, the M62 J10-12, the M56 J6-8, and the M6 J16-19 and 21a-26.
The roads have mostly been good yeah, Manchester for example has an innner and outer ring road. Its only really the route across the Pennines thats really been under invested and can be closed in bad weather particularly for high sided vehicles. The widest stretch of motorway in the country is a stretch of the the M61 near Linnyshaw Moss where the M6, M61, A580 and A666 meet which is 17 side by side lanes. You do get some peak traffic jams on Motorways though, for example over the Manchester Ship Canal at the Thelwall Viaduct, the M6 around Preston, and the M56 near Manchester Airport will be over its rated capacity from next year.
Part of the £15bn transport plan put forward by the One North was asking for all the motorways in the region to be upgraded to managed motorways (i.e. hard shoulder becomes extra operating lane and variable speed limits to maximise throughput) to deal with future projected growth in passengers and freight in particular as is already happening to the M60 J24-27 and 1-4, the M62 J10-12, the M56 J6-8, and the M6 J16-19 and 21a-26.
Which suggests that the railway system in LSE is rather more important to the 'work' economy of the LSE region than in other parts of the country, since season tickets are normally bought by people who have to use the train to get to/from work.
Yeah the view being that while its always been seen that way around London up North its not been seen as a valid working class travel choice until recently, for the last hundred years while upper middle class were happy to commute in from their houses in Cheshire, the Lake district, etc.. it didnt attract the ordinary working class, making it be seen as a valid travel choice.
It would be nice to see a project in London that showed a decent BCR.
The Crossrail Business case was fudged. Financially it's a nightmare. The extra revenue it was forecast to bring in didn't even cover the operating costs, never mind paying back the Capex. It was "justified" on the basis of spurious time savings and reductions in congestion. And of course the time saved by Londoners is considered more valuable than the time saved by the hicks in the provinces.
Funny when people talk about Northern it's all about financial cost, with the User time and congestion savings ignored.
I wouldn't dispute that. Of course, the "work economy" is only a part of the economy.
This is exactly why we in the North think that we're getting a poor deal. Any further Crossrail projects should be funded (in terms of capital) by the people and businesses of London.
But they are. London pays more than its share of taxes.
As a proportion of income, you will find that people living in less economically vibrant areas (read anywhere outside of SE England) pay more in taxes.
That's a red herring, even if true (and I'd need to see some evidence before I accepted that). The issue was whether London was paying for what it was getting, and the answer to that is, "Yes, and more!".
As a proportion of income, you will find that people living in less economically vibrant areas (read anywhere outside of SE England) pay more in taxes.
Always a different perspective
London pays because it concentrates the country's political, economic and financial power there. If we had more of a federal set up, it eventually wouldn't have so much of a burden.
Well that's no benefit to the average commuter who are just employees.
We don't have a federal setup and as long as we have a monarchy it's not really likely. Even if Scotland get their independence, I think that London will continue to trade on its geographical, historical and economic strength rather than setting up a synthetic home of power. Just look at the mess that the BBC has made of their news programmes by moving remote from London.