Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment she has made of the relative operational cost increases for (a) rail freight and (b) road freight during the period from 2011 when fuel duty was first frozen for HGVs.

Fuel duty is a matter for His Majesty’s Treasury. The Government recognises the economic and environmental benefits of rail freight. The Railways Bill will place a duty on Great British Railways to grow rail freight, meaning freight operators will benefit from a longer-term strategic approach to planning, including a new capacity allocation and timetabling process.

As part of continued support for the sector, the Department has operated the Mode Shift Revenue Support scheme since 2010. The scheme is designed to encourage modal shift by assisting with the operating costs associated with running rail or inland water freight transport instead of road, where rail or inland waterway transport is more expensive. The relative costs have been reviewed to ensure that the scheme continues to achieve its goal to support modal shift and are kept under review.