Crewe Rail Forum
The Crewe Rail Forum, facilitated by the South Cheshire Chamber of Commerce and Industry, represents the interests of Crewe’s rail industry, workforce, and economy. Crewe, the largest town in Cheshire East, has a rich railway heritage and remains one of the most strategically important rail hubs in the UK. Cheshire East Council, a Unitary Council in the Northwest of England, has long recognised Crewe’s strong railway links and dependencies, which continue to play a critical role in the local and regional economy.
Crewe’s Railway Legacy and Strategic Importance
Crewe was quite literally built on the railways. The town developed following the Grand Junction Railway Company’s investment in a new station in 1837, connecting the Liverpool & Manchester Railway and the London & Birmingham Railway. The opening of Crewe Works in 1840 cemented the town’s place at the centre of the UK’s railway industry, making it a focal point for rail engineering and operations.
Today, Crewe remains one of the most significant railway interchanges in the country, thanks to its 360-degree connectivity. Its location at the heart of the UK rail network makes it a vital hub for both passenger and freight transport, uniquely positioned as a gateway to the Midlands Engine, Northern Powerhouse, Scotland, and Wales.
Crewe station continues to serve key national and regional routes, with direct services to London, Manchester, Birmingham, Liverpool, and beyond. It is also home to the largest number of different Freight Operating Companies (FOCs) and Train Operating Companies (TOCs) in regular use of the station. It was this unparalleled connectivity that led to Crewe being designated the HS2 Northwest Hub, with the planned investment in high-speed rail set to revolutionise the economic outlook for Crewe, Cheshire East, and the wider region.
A Town Built on Rail – Facing an Uncertain Future
Crewe’s economic growth has always been closely tied to the rail industry. From the golden age of steam train manufacturing to the later diesel and electrification programmes, Crewe’s railway expertise has consistently placed it at the heart of both the passenger and freight rail industry.
Today, Crewe is home to many major rail businesses, including:
Despite representing just 0.1% of England’s population, Crewe accounts for approximately 7% of the national rail workforce. This demonstrates the town’s disproportionate contribution to the UK’s rail sector and the significance of rail investment for the local economy.
The Need for a Long-Term Rail Investment Pipeline
For years, local rail businesses have been investing in skills and workforce development in preparation for HS2 and wider rail projects. However, the sudden cancellation of HS2 north of Birmingham and the lack of a clear rail investment pipeline have caused significant disruption, undermining business plans and creating uncertainty about the future. Without long-term commitments to rail investment, Crewe’s rail businesses face severe challenges, potentially putting jobs, apprenticeships, and regional economic growth at risk.
Given the strategic importance of Crewe and Cheshire East’s rail industry, the Crewe Rail Forum strongly urges the Government to provide a stable, long-term investment pipeline. Without it, the economic potential of Crewe and its contribution to the UK’s railway future will be significantly diminished.
Crewe Rail Forum, in recognition of Crewe’s vital rail role, feels compelled to submit evidence to the Transport Select Committee, highlighting the urgent need for clarity, certainty, and strategic investment in the region’s railway future.
a) What have been the barriers to establishing stable and transparent long-term investment pipelines in the past (such as for track enhancements, station upgrades, and rolling stock orders) and how can they be overcome?
A major barrier has been the absence of a comprehensive and prioritized rail plan with realistic cost forecasts, delivery timelines, and firm budget commitments. Without such a framework, local areas struggle to develop coordinated transport and regeneration strategies that leverage major rail investments. Additionally, the rail industry lacks a stable foundation for short-, medium-, and long-term planning, making workforce recruitment and training more challenging. A well-defined, long-term, and fully funded plan is essential to ensure the necessary resources are in place and to maximize skilled employment opportunities across the UK.
Shifting policies have created instability, as seen with the cancellation of HS2 Phases 2a and 2b, despite Phase 2a having received Royal Assent and Phase 2b being in Parliament. These sudden policy changes have disrupted long-term rail investment strategies and derailed local economic growth plans built around expected developments. For instance, long-planned track enhancements and station upgrades in Crewe were postponed to align with HS2, only to be left in limbo when HS2 Phase 2 was cancelled. This inconsistency has undermined investment confidence and deprived key regions of much-needed infrastructure improvements.
Extended and impractical delivery schedules have resulted in inefficiency, cost overruns, and a loss of confidence in the investment pipeline. When projects face delays, budgets inflate, and plans often require scaling back or cancellation—leading to wasted resources and further setbacks. These disruptions not only increase costs but also threaten the integrity of an integrated rail investment strategy, reducing its overall effectiveness and impact.
b) What funding sources need to be drawn on to plan such pipelines and is an appropriate framework in place for the allocation of funding to different projects?
One of the key challenges has been the absence of a well-integrated, up-to-date rail investment plan with clear cost forecasts, firm budget commitments, and realistic delivery schedules. A structured, long-term plan is essential to provide clarity on national rail investment priorities, enabling local areas to plan and deliver complementary transport and regeneration projects. Additionally, the rail industry requires a stable framework to develop business strategies, recruit, and train the workforce needed to implement projects efficiently. Without a properly funded long-term plan, the sector faces uncertainty, limiting skilled job creation and economic growth across the UK.
Frequent policy reversals have severely impacted investment confidence. The cancellation of HS2 Phases 2a and 2b, despite Phase 2a having received Royal Assent and Phase 2b being in Parliament, is a prime example of how shifting government decisions disrupt long-term planning. This abrupt policy change has derailed local and regional growth strategies that were designed around HS2’s expected arrival. Crewe, for example, had long-planned track enhancements and station upgrades aligned with HS2 to maximize efficiency and cost-effectiveness. With the cancellation of Phase 2, these critical upgrades were deprioritized or scrapped altogether, despite their longstanding importance.
Prolonged and unrealistic project timelines contribute to cost overruns, inefficiencies, and a loss of confidence in the investment pipeline. When rail projects are delayed, budgets inflate, scope reductions become necessary, and other planned investments are often postponed or abandoned. This cycle of uncertainty weakens the integrity of a coordinated rail strategy and creates further inefficiencies, ultimately reducing the impact of investment across the rail network.
Funding Sources and Allocation Framework for Rail Investment
The Crewe Rail Forum believes that a mix of funding sources is necessary to ensure a sustainable and strategic approach to rail investment, including:
Funding Allocation Framework
The Crewe Rail Forum does not believe the current funding allocation framework is fit for purpose. If an effective framework were in place, priorities such as addressing West Coast Main Line capacity constraints and urgent upgrades at Crewe station would already have secured investment.
For example, in 2009, the Better Rail Stations report, commissioned by the then Transport Secretary, identified Crewe as one of the top 10 category B stations in England requiring urgent upgrades. However, Crewe remains the only station from that list yet to receive the necessary investment.
The Crewe Hub Programme, previously led by Network Rail, was set to bring together over £1.5 billion in funding, combining resources from Network Rail and HS2 Ltd to modernize Crewe station and integrate it with future high-speed services. However, following the cancellation of HS2 Phase 2, Network Rail’s funding was significantly reduced, and the Crewe station upgrade plan was downgraded to a minimum necessary renewals programme rather than the comprehensive investment initially planned.
The failure to implement a structured, long-term funding strategy has left key regional projects in limbo, further undermining rail network resilience and regional economic growth.
c) How could a potential pipeline provide transparency and certainty for industry?
i. What Time Period Should It Cover?
A 5–15-year timeframe is essential for an investment pipeline, complemented by a further investment prospectus covering the subsequent 15-20 years. This approach ensures a long-term outlook, providing confidence in projected outcomes and a clear roadmap for development. The rail industry requires several years to mobilise resources and workforce at significant expense. Stability in the investment pipeline maximises the economic output and skilled job creation for UK Plc. For instance, the unforeseen cancellation of HS2 North in October 2023 had severe repercussions on the industry, including multinational and local SMEs based in Crewe. Without clarity and confidence in the future rail pipeline, these businesses face uncertainty regarding their long-term viability.
ii. What Level of Project Specification Should It Include?
Government collaboration with industry, professionals, and local authorities is crucial to ensure project specifications align with required outcomes. A key lesson from HS2 is that the primary goal was to increase capacity on the West Coast Main Line (WCML), a critical artery of the UK rail network, which has been operating at or near capacity for years. However, excessive focus on high-speed rail and fixed specifications led to cost overruns and inflexibility. Now, with HS2 Phase 1, there is no committed scheme to address WCML capacity constraints north of Birmingham. Furthermore, the restrictive rolling stock specifications of HS2 could reduce capacity even further in the North, as slower HS2 trains may carry fewer passengers than existing Pendolino services due to standing prohibitions.
iii. What Commitments from Government Should Be Included in Both the Short and Long-Term?
The government should commit in the short term to addressing WCML capacity bottlenecks between Birmingham and Crewe, including essential upgrades such as Shugborough Tunnel, Colwich Junction, and Crewe’s southern signalling. Extending HS2 Phase 1 to Crewe should also be reconsidered, as it would bring significant cost and scheduling efficiencies. Reinstating HS2 Phase 2a safeguarding and utilising existing parliamentary powers could resolve critical capacity constraints while leveraging Crewe’s strategic connectivity to benefit the North and Wales.
The case for HS2 Phase 2a and Crewe as a Northwest hub was strongly supported by Sir David Higgins in the ‘HS2 Plus’ report, which identified Crewe as the optimal strategic location. The need for WCML capacity improvements and Crewe Hub enhancements was also highlighted in written evidence to the Select Committee inquiry ‘HS2: Progress Update’ by Andrew McNaughton (November 2023). Furthermore, industry leaders, experts, and professionals in oral evidence to this inquiry urged the government to reconsider its Phase 2a decision, emphasizing its importance for WCML operability and long-term reliability.
Maintaining industry capacity and capability is also vital. Years of workforce upskilling and expansion to meet HS2’s demands should not be wasted, as rebuilding lost capacity would take decades. Additionally, collaboration with industry and local leaders is needed to explore options for WCML capacity enhancements north of Crewe and connectivity improvements between Liverpool and Manchester. These improvements are fundamental to unlocking the North’s economic potential.
A further commitment should include a nationwide rollout of integrated fares and ticketing. This initiative could optimize network usage by incentivizing off-peak travel and promoting sustainable, multimodal transport.
iv. What Budgets and Sources of Public Funding Should It Encompass?
The government should ensure that budgets originally allocated to HS2 Phases 2a and 2b, now redirected to the Network North programme, remain ring-fenced to deliver essential WCML capacity improvements. These funds should align with Network Rail’s Control Period funding and the Rail Network Enhancement Pipeline (RNEP) to maximize benefits for passengers, freight, local economies, and regional connectivity.
v. How Should It Engage Private Investment?
Private investment will only be attracted when a stable, transparent, and viable long-term pipeline is in place. Investors need confidence that the government is committed to delivering planned projects before they commit resources. Ensuring consistency in rail policy and project delivery is critical to securing meaningful private sector contributions.
Crewe Rail Forum remains committed to advocating for these critical enhancements, ensuring that Crewe and the wider North benefit from strategic investment in rail infrastructure.
d) What role should the industry play in the development of this pipeline and how should Government engage with industry in its delivery?
The development of this pipeline is critical to ensuring the long-term success of rail infrastructure and services in Crewe and beyond. Industry must play a leading role in shaping and delivering this initiative, ensuring that it is fit for purpose, commercially viable, and aligned with the future needs of the rail sector. At the same time, Government engagement must be structured to facilitate meaningful collaboration, harnessing industry expertise while providing the necessary support and regulatory framework for effective implementation.
Industry’s Role
Government Engagement and Support
Conclusion
A successful pipeline requires strong industry leadership and a supportive Government framework. By fostering a collaborative approach, industry can drive efficiency, innovation, and sustainability, while Government can provide the strategic direction, funding, and regulatory support needed to make it a reality. This partnership will be instrumental in securing Crewe’s position as a key hub for rail excellence and economic growth.
e) What role would a long-term rail investment pipeline play in developing the railway supply workforce?
The recent and sudden cancellation of HS2 north of Birmingham has starkly highlighted the critical role that a long-term rail investment pipeline plays in sustaining and developing the railway supply workforce. Industry had already committed substantial resources to expanding and upskilling its workforce in anticipation of delivering HS2. This demonstrates the level of investment required to build the capacity and capability needed for major rail projects.
Without a long-term and predictable investment pipeline, the rail industry will struggle to maintain workforce readiness, leading to instability, job losses, and a loss of skilled professionals. The uncertainty caused by inconsistent investment decisions not only hampers workforce development but also discourages new entrants from pursuing careers in the rail sector.
A stable and strategic investment pipeline would allow businesses to plan ahead, ensuring they can recruit, train, and retain the skilled workforce necessary for delivering future rail projects. This would also provide confidence to educational institutions and training providers to develop the next generation of railway professionals, reinforcing the industry’s long-term sustainability.
In addition to supporting workforce stability, a long-term pipeline would drive innovation and technological advancements within the rail sector. Businesses would have the confidence to invest in research and development, modern construction methods, and digital solutions, further enhancing the efficiency and effectiveness of rail infrastructure delivery.
Government must work closely with industry to establish a clear and reliable investment pipeline, ensuring that the workforce remains a key priority. A collaborative approach will not only safeguard jobs but also enhance the UK’s rail expertise and global competitiveness.
The Crewe Rail Forum urges policymakers to recognise the essential link between long-term rail investment and workforce development. By providing certainty and stability, the Government can unlock industry investment, foster innovation, and secure a highly skilled workforce capable of delivering the rail network of the future.
f) How should a pipeline interact with the Government’s development of a wider long term rail strategy, rolling stock strategy, infrastructure strategy, and the Invest 35 industrial strategy?
A long-term rail investment pipeline must be fully integrated with the Government’s broader strategies, including the long-term rail strategy, rolling stock strategy, infrastructure strategy, and the Invest 35 industrial strategy. This alignment is essential to ensure the effective coordination of funding, workforce development, and technological innovation across the rail sector.
1. Alignment with the Long-Term Rail Strategy
A structured investment pipeline should serve as the foundation for delivering the Government’s overarching rail vision. It must provide a predictable flow of investment that supports decarbonisation, digital transformation, and network capacity enhancements. Ensuring consistency between pipeline projects and the long-term rail strategy will enable better planning, improved passenger experience, and enhanced freight logistics.
2. Integration with the Rolling Stock Strategy
Investment in rolling stock must be synchronised with infrastructure upgrades and workforce planning to avoid mismatched capabilities. The pipeline should outline procurement schedules that align with Government policies on decarbonisation and fleet renewal, ensuring timely delivery of new trains and the phased withdrawal of outdated stock. Additionally, it must consider the supply chain needs to sustain UK-based manufacturing, maintenance, and training capabilities.
3. Coordination with the Infrastructure Strategy
The rail investment pipeline should be closely linked to infrastructure planning, ensuring that new rolling stock, signalling systems, and electrification projects are delivered in a coordinated manner. Government must work with industry to prioritise projects that address network bottlenecks, support regional connectivity, and enhance resilience against climate change. A long-term view is essential to avoid the cycle of underinvestment that leads to inefficiencies and increased costs.
4. Supporting the Invest 35 Industrial Strategy
The pipeline must directly contribute to the Invest 35 industrial strategy by driving economic growth, creating jobs, and fostering innovation. By providing confidence in future rail investment, businesses can make long-term commitments to research, skills development, and supply chain expansion. This will support the UK's ambition to be a global leader in rail technology, automation, and low-carbon solutions.
5. A Unified Approach to Policy and Investment
Government must ensure that all these strategies are interlinked through a stable and well-communicated investment pipeline. This means:
A disjointed approach would result in inefficiencies, wasted investment, and missed opportunities for economic growth. By contrast, a properly structured pipeline will provide the strategic clarity needed to deliver an efficient, modern, and sustainable rail network that benefits passengers, freight operators, and the wider economy.
Crewe Rail Forum calls on Government to ensure that the rail investment pipeline is a central pillar of its long-term strategy, fostering stability, innovation, and a world-class rail network for the UK.
February 2025