
How crucial is rail to the UK's economic growth & net zero plans?
The UK’s rail network is more than a means of getting from A to B—it’s a powerhouse driving economic growth, sustainability, and social connectivity across the nation. New research from WPI Economics, commissioned by the Rail Delivery Group, reveals the remarkable impact of the rail industry on the UK, from generating billions in benefits to supporting the transition to a greener future.
Economic Impact: Fueling Growth and Productivity
Over the past year, the rail industry has generated a massive £26 billion in economic, environmental, and social benefits, with rail customers contributing an additional £98 billion through their spending in local communities. Facilitating over three million journeys each day, the rail network plays a crucial role in enhancing productivity across UK towns and cities, supporting businesses, and enabling efficient commutes. Moreover, the industry directly employs over 100,000 people, providing diverse roles—from station staff and train drivers to underwater divers and delivery managers.
And this is just the beginning. With projected growth in rail travel at an average rate of 1.6% annually over the next 30 years, the rail industry could see a 20% increase in usage by 2035, boosting its contribution to £35 billion. If usage rises by 40%, driven by enhanced services and a preference for sustainable transport, the industry’s total value could soar to £46 billion. Realising this potential depends on continuous improvement in service quality, integration with other transport modes, and government investment in infrastructure. Together, these efforts can make rail an even more attractive and convenient option for travellers.
Environmental Impact: Supporting the UK’s Net Zero Journey
Rail isn’t just essential for the economy; it’s a critical player in the UK’s journey toward net zero emissions. Per mile traveled, passenger trains produce only a fifth of the greenhouse gas emissions of the average petrol car. According to the latest research, a 40% increase in rail use by 2035 could shift a minimum of four billion miles from car to train journeys. This shift would result in a 1.8 million-tonne reduction in greenhouse gas emissions each year—a figure greater than all domestic aviation emissions in 2019. By encouraging more people to choose rail over cars, the industry can help the UK meet its ambitious climate goals in alignment with the Committee on Climate Change (CCC)’s recommendations.
Social Impact: Connecting People and Reducing Isolation
The benefits of the rail network go beyond economic growth and environmental sustainability—it also plays a vital role in connecting people and communities. For nearly two-thirds of people aged 16-30 and 55% of those over 30, rail travel means greater independence and accessibility to jobs, education, and leisure activities. Rail is especially important in rural areas, where it provides essential links that reduce social exclusion and improve quality of life. By continuing to make rail more accessible, the industry can support social inclusion and help more people benefit from the opportunities that greater connectivity brings.
The Road Ahead: Building a Better Future with Rail
As Jacqueline Starr, CEO of Rail Delivery Group, puts it, “The UK’s rail network does more than simply transport us from A to B; it plays a crucial role in driving economic growth by connecting businesses and communities, improving productivity, and supporting the transition to net zero.” Looking ahead, the rail industry’s growth and success will rely on its ability to meet the evolving needs of travelers while delivering seamless, sustainable, and efficient transport options.
By working together and investing in the rail network, the industry and the government can unlock a wealth of benefits for the UK’s economy, environment, and society. With rail, we’re not just building better transport infrastructure—we’re building a better future for everyone.