The immediate outlook for companies supplying the railway has remained ‘strained’ since the Labour government was elected in July, according to the Railway Industry Association.

In an open letter to new transport secretary Heidi Alexander RIA has welcomed signs of progress, including the government’s support for East West Rail, the Transpennine Route Upgrade and HS2 to Euston, but it has also warned that confidence is low in the railway supply chain, and that there have been ‘significant’ job losses.

RIA is asking the government to take the opportunity offered by the Treasury’s Spending Review 2025, due in the summer, to smooth out ‘boom and bust’ work cycles. 

RIA chief executive Darren Caplan said: ‘Six months into the new Government and as we start a New Year, RIA is acknowledging some progress on support for major rail projects and its call last autumn for a long-term rolling stock pipeline, whilst also setting out some “offers” and “asks” to boost the confidence of the railway industry on what has been a difficult time for rail suppliers.

‘Recent confidence has been low and 2024 saw job losses among some suppliers, which is not only worrying for those involved but which also threatens to then increase the cost of work in the future. So it is vital the Government sets out a positive stall for the next 12 months.

‘We urge the Treasury Spending Review to provide clarity on long-term rates of work, whether new railway lines, rolling stock or electrification. And that, given many key rail improvements cannot wait until the establishment of Great British Railways towards the end of 2026 at the earliest, decisions on major projects, enhancements and train building and refurbishments, are brought forward to help to attract business investment.’

He added: ‘Despite recent mixed reports on north-south rail infrastructure, we are asking Heidi Alexander to look at the need to develop future north-south capacity, given forecasts show passenger numbers will grow significantly in the coming years. Further, we ask the Government to push on speedily this year with its agenda to deliver rail reform and bring “track and train” together. Given over half of rail expenditure goes through the supply chain, the supply sector should be accorded an appropriate role.’