Cash for rail swap?
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• Cash incentives to attract freight on to rail are under Government review—raising expectations that by next year rail could become increasingly attractive.
The study of rail freight grants by the National Audit Office follows concern that potential users are being put off by the lengthy application time. The NAO is looking at how well the grant system works because last year only a small proportion of the £13m available was taken up. The NAO may also study the range of environmental grants payable towards track access charges. The Department of Transport has already admitted that the 5p/mile payable for train operators who have shifted freight from lorries using motorways and dual carriageways is "low".
The users' pressure group, the Rail Freight Group, and companies such as the Transport Development Group want the grant raised to 25p/mile to encourage a switch to rail.