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Rail productivity continues to recover

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Productivity continues to improve as more trains are run 

Our 2026 report highlights the continued recovery in productivity since the pandemic, with 3% productivity growth in 2024-25, continuing the trend seen since the substantial drop in 2020-21. 

Passenger and freight train kilometres per thousand pounds of industry expenditure

This chart shows quality adjusted train distance travelled per thousand pounds of industry expenditure. In 2014-15, there were 30 train kilometres per thousand pounds of expenditure. In 2015-16, there were 28 train kilometres per thousand pounds of expenditure. In 2016-17, there were 29 train kilometres per thousand pounds of expenditure. In 2017-18, there were 30 train kilometres per thousand pounds of expenditure. In 2018-19, there were 28 train kilometres per thousand pounds of expenditure. In 2019-20, there were 30 train kilometres per thousand pounds of expenditure. In 2020-21, there were 24 train kilometres per thousand pounds of expenditure. In 2021-22, there were 26 train kilometres per thousand pounds of expenditure. In 2022-23, there were 25 train kilometres per thousand pounds of expenditure. In 2023-24, there were 27 train kilometres per thousand pounds of expenditure. Our quality adjusted metric shows a -6% decline in productivity since 2014-15.

Expenditure values adjusted to 2024–25 prices. Quality adjusted means headline productivity is adjusted for train performance and rolling stock age

Our report shows rail industry productivity is particularly sensitive to changes in passenger and freight demand and increasing costs. Train distances travelled have almost recovered to 2014-15 levels but expenditure on the operational railway is 21% higher than a decade ago. On this measure, quality adjusted productivity is 6% lower than a decade ago.

We also compare rail productivity to the wider economy using total factor productivity. This is a comprehensive approach which captures not only individual inputs but the efficiency with which labour and capital are combined. In the years since the pandemic, the growth in rail productivity has been stronger than that of the wider economy.  

Comparison of rail industry total factor productivity and ONS multi-factor productivity for the whole UK economy 

Line graph comparing Rail industry estimated Gross Output Total Factor Productivity and ONS Gross Output Multi Factor Productivity for the whole economy from 2014-15 to 2023-24, with values indexed to 100 in 2014-15. Rail industry TFP shows a sharp decline in 2020-21 followed by a recovery surpassing 100 by 2023-24, while ONS MFP remains stable near 100 throughout the period.

Total factor productivity for rail is 8% higher than a decade ago – in contrast to the findings from our partial productivity analysis. This shows the sensitivity of productivity to the measurement of outputs and inputs which we explain in our report. 

Looking ahead

One of the key aims for government with rail reform is reducing the net subsidy to the railway. Revenue growth is clearly central to this, but so is increasing productivity.

As we look forward to rail reform, an important part of the benefits will come from a more integrated system. Great British Railways, which will bring together track and train, is expected to launch later next year and our analysis provides a useful baseline for how we might measure some of the future benefits from integration. 

We will continue to refine our analysis and welcome comments on this year’s report. 

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