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Rail Reform

We recognise that we need to tackle the underlying inefficiencies in the railways, which Sir Roy McNulty identified as totalling around £3.5 billion. I also recognise that some of the network provides a broader public good and that there will therefore be a need for public subsidy. However, we need to make sure that that represents good value for taxpayer money. We are concerned about overcrowding. That is why we are investing in 2,700 new carriages, which will provide extra capacity. That is why the overall £18 billion of investment going into the industry is so crucial; that is one way in which we can improve performance. Of course, making sure the industry is financially sustainable is absolutely critical too.