Question to the Department for Transport:

To ask the Secretary of State for Transport, how Network Rail has calculated the Gross Value Added to the local economy of a new sleeper factory at Bescot Rail Yard during the (a) temporary construction period and (b) once the facility is operational.

A proposal for a new facility in Bescot is being developed by Network Rail to produce the sleepers necessary for them to maintain, renew, and enhance our rail network. The facility is intended to make up the shortfall when an existing facility at Washwood Heath is closed to become an HS2 depot.

The facility is expected to generate an estimated £7.8m of Gross Value Added (GVA) per year for the local economy over the two-year construction period. One construction is complete and the facility is operational, it is estimated that the GVA will be £6.1m per year.

These figures take into account a number of factors including; the average GVA per head for manufacturing workers in Sandwell, additional direct employment as a result of the facility including an apprenticeship scheme, the sourcing of materials from local businesses, haulage contracts worth an estimated £5m, local benefits associated with the development of an unused brownfield site which will stimulate further investment, and increased business rates generated by the facility with an estimated increase of up to approximately £300,000 in business rates revenue annually.