Poor returns threatening future of light railways, says NAO

Light railway systems are not attracting passengers or delivering as many benefits as they could, according to a report published today by the National Audit Office (NAO).

Since 1980 some £2.3 billion has been invested, of which the government has contributed over £1 billion, and only seven systems have been built. Four are running at a financial loss and construction costs are rising, the report said.

At the moment, 12 new lines are being developed, with the help of £1.4 billion from taxpayers, and the government has envisaged that up to 25 new lines could be built by 2010.

"Their modern look and attractive services have enhanced the image of the cities where they have been built," the report said.

According to today’s report, light rail systems are not fully integrated with other forms of public transport, especially buses and have had little impact on reducing road congestion. And affordability and value for money are now major stumbling blocks to further development of light railways, according to the NAO.

Britain is some distance behind the continent, the study found. Systems in France and Germany connect major places of activity, such as hospitals and universities – which is not not always the case in England.

The NAO also slammed the amount of time wasted in getting systems in place – on average it took nearly two years for local authorities to be granted the required legal powers. Approval for an extension to the Leeds Supertram system took almost four and a half years, the NAO said.

The audit office has urged the Department for Transport to work with the industry to reduce the costs of light rail systems.

The department should also require promoters to integrate their schemes better with other modes of transport; encourage more passengers to use their systems through; and make the speed and punctuality of services more attractive.

The report singled out the Croydon Tramlink and Manchester Metrolink systems as examples of how passengers can gain "significant benefits" through a "fast, frequent and reliable services" and a "comfortable and safe journey".

Sir John Bourn said: "Light rail systems have improved the quality and choice of public transport, by offering fast, reliable and frequent services. Systems need to be better integrated with other modes of transport, however, to attract more passengers and help to reduce urban congestion. And if more systems are to secure private sector investment, construction costs must be brought down and operations placed on a sound financial footing."

(gmcg)