Question to the Department for Transport:

suggested redraft: To ask the Secretary of State for Transport, what estimate his Department has made of the potential effect on the viability of rail freight of a 25 per cent reduction in (a) mode shift revenue support and (b) waterborne freight grant.

The Government provides grants worth £15.6m per year to support rail and water freight services which deliver environmental and economic benefits over road transport, but whose operating costs are higher. This level is net of a significant efficiency saving implemented since 2015.

Rail flows of intermodal freight continue to be healthy and the grants deliver high value for money. A research project is underway to inform decisions about future funding and operation of the grants and will consider stakeholder feedback.