Train passengers contribute significantly to local economies by spending billions of pounds at stores near stations, a study by the Rail Delivery Group (RDG) has revealed. According to the research, annual expenditure by train passengers in Britain amounts to £23 billion at high street stores and £9 billion at independent businesses. The survey also indicated that 70% of respondents believe that having a train station benefits local businesses, with passengers typically spending around £7 each before their journey at nearby independent establishments.
RDG chief executive Jacqueline Starr emphasised the importance of rail in supporting local economies, stating that networks of small and medium businesses thrive in and around train stations across the country. She highlighted that train travel offers passengers not only a mode of transportation but also an opportunity to explore towns and cities, supporting local businesses on high streets. Increasing the number of people choosing to travel by train is expected to further boost local economies, creating a stronger ripple effect.
The report, conducted by consultancy WPI Economics and based on a survey of over 3,000 individuals, outlined the significant contribution of the Government to the rail industry. In the year leading up to March 2023, the Government allocated £21.1 billion to the rail sector, including funds for operational activities, HS2 development, and infrastructure enhancements.
The positive impact of train passengers’ spending on local businesses underscores the symbiotic relationship between public transportation and economic growth. As passengers continue to patronise shops and services near stations, the rail industry remains a crucial driver of economic activity in communities throughout the UK.