NEARLY a quarter of British businesses have increased their use of the rail network in the past year — partly because of increasing road congestion — but many businesses are worried about the growing expense of using rail.

These are among the findings of the 2008 Business Travel Survey, commissioned by the British Chambers of Commerce (BCC), which highlights the urgent need for investment in transport infrastructure.

David Frost, the BCC’s chief executive, said: “Our roads are congested and our railways cannot cope with the demand placed on them.”  He said many firms were finding difficulty attracting or retaining staff due to difficulties in travel to and from the workplace, while delays were also resulting in missed deadlines.

He added: “Transport is critical to the economy and in a time of economic downturn it is essential that our transport networks are up to the task.

“The grim result of decades of underinvestment is that over the last 12 months the cost of congestion to British business is £23.2 billion, a staggering rise of £5.7 billion over the year.”

Mr Frost went on: “Amending the definition of overcrowding on the railways does nothing to solve the problem except infuriating already uncomfortable passengers.

“Short term schemes such as high occupancy vehicle lanes or extra rail carriages, while helpful, are merely sticking plasters which do nothing to answer the long term problem of capacity.

“High profile projects such as the third runway at Heathrow and a new high speed railway must happen.

“If the UK is to maintain its position in the world it must invest in its infrastructure. A first rate country
cannot operate with a third rate network.”


HIGHLIGHTS FROM THE BUSINESS TRAVEL SURVEY

As the economy begins to slow down transport must not become a victim of the credit crunch, says the British Chambers of Commerce, adding: “This survey highlights the urgent need for investment in our transport infrastructure.

“Major projects such as a third runway at Heathrow and a new high speed railway must not be put to one side but should be brought forward. Indeed, opportunities for further public investment during this economic downturn they should be directed at transport improvements. However, the government must plan early. We don’t want to see major projects trapped in an overly complex planning process when they are required now.”

Looking at the rail network, the BCC says: “The railways are reaching critical capacity.”

Nearly a quarter of businesses (22 per cent) indicated that they have increased their usage of the network in 2008 — but this is due, in part, to rising congestion on the roads, according to the survey.

“However, as the railways are stretched, businesses are concerned at the growing expense of using rail. Over two thirds of businesses rated a reduction in fares as the most important aspect to address on the rail network.

“Punctuality and reliability still rank high although the inability to park at stations was rated as the third highest issue that needs improving. This reflects a growing unease that congestion is pricing people off the roads yet subsequent rises in rail fares and reducing capacity is making rail less attractive.

“As capacity reaches its limits the railway network will require new infrastructure and a new high speed rail network will release capacity on the traditional network while also allowing more freight to be taken on rail. It is therefore important that the government considers high speed rail in association with capacity problems.”

The survey criticizes the government for amending its definition of overcrowding “to shield the true extent of the problem.”

Looking at freight transport, the BCC says: “Although rail is considered the best alternative to road its low usage suggests it continues to find it difficult to compete on a level playing field. The government has stated that it wants to transfer freight from road to rail.

“This survey suggests that there is more work needed before this can become a reality. Improvements to rail freight terminals or extra capacity on the network could go a long way to making rail freight a practical reality.”

Looking at the cost and impact of congestion, the BCC reports: “Nine out of ten businesses have experienced increased operating costs while four fifths claimed a loss of man hours. Over half of those surveyed stated that they have lost business or are suffering recruitment difficulties.

“This all adds up to a real cost which on average is estimated at £17,350 per business. On a national scale this equates to a staggering £23.2 billion pounds, a rise of £5.7 billion over the last 12 months.”

It adds: “What is clear from this survey is that the business community remain sceptical about government initiatives to ease congestion. . . . [but] businesses indicated that they would resist attempts by government to raise revenue through business only taxes for infrastructure improvements.”

Planning remains a major cause of frustration among businesses, the survey shows. “Ninety five per cent believe that the planning of the UK’s major transport infrastructure schemes takes too many years to materialise while nine out of ten agreed that major transport schemes are too bureaucratic in their design and implementation.

“This frustration was represented by the overwhelming support, four fifths of all businesses, for the Infrastructure Planning Commission as proposed in the government’s Planning Bill.”

In its conclusions, the BCC says the UK’s transport infrastructure is still built around its Victorian foundations, and its report “points to the failings and inadequacies of the transport network and points to the urgent need for a complete revision of current transport policy.”

The BCC recommends:-

— the government to bring forward public spending proposals on infrastructure projects that can quickly release capacity onto our transport network. “Infrastructure investment will enhance the productivity of all transport modes and ensure the wheels of the economy keep on turning.”

— a new north-south high speed rail line is needed as a matter of urgency. “The construction of a truly high speed rail network will relieve pressure on existing conventional lines freeing up capacity for freight and commuter services.”

— the planning system currently takes too long and is too bureaucratic. “It is therefore essential that the government’s proposals for national policy statements and an Infrastructure Planning Commission are implemented in full.”