Rail freight target set to boost economy by £15bn

The government has established a new objective to expand rail freight capacity by a minimum of 40% by the year 2040. This target represents the initial phase towards a broader ambition of achieving a 75% increase in rail freight by 2050. The Department for Transport announced on 8 September 2026 that this initiative aims to support British businesses by facilitating the movement of more goods, thereby strengthening supply chains and fostering economic expansion.

Currently, rail freight contributes nearly £34 billion annually to the UK economy. Meeting the newly set 2040 target is projected to increase this value by approximately £15 billion each year. This growth is anticipated to enhance the transportation of various products across the country. For context, a single freight train has the capacity to transport sufficient materials to construct around 30 homes. Network Rail estimates suggest that the new targets could lead to a 45% rise in the transport of construction materials by rail, alongside a roughly two-thirds increase in the movement of items such as cars, wine, white goods, and medicines.

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Environmental and economic benefits

Beyond economic advantages, the shift towards greater rail freight usage is expected to yield significant environmental benefits. The Department for Transport stated that achieving the new target could result in an annual saving of up to one million tonnes of carbon dioxide emissions when compared to transporting the same volume of goods via road. Rail freight is also noted for easing congestion on the road network.

Transport Secretary Heidi Alexander stated that Great British Railways will be tasked with a clear mission to aid economic growth by facilitating the transport of goods essential to British businesses. She added that the new target provides the rail freight industry with the necessary certainty to make investments, supporting businesses in moving more products, supplying materials for new homes and infrastructure, and creating jobs nationwide.

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Rail freight is a vital part of our transport network and the UK economy, moving millions of tonnes of goods every day, putting food on our supermarket shelves, delivering the materials that build our homes and critical infrastructure and much more besides.

Jeremy Westlake, Network Rail’s Chief Executive

Jeremy Westlake, Chief Executive of Network Rail, emphasised that increasing the role of freight on the railway not only benefits economic growth but also reduces road congestion and cuts carbon emissions, aligning with the goal of a cleaner, more resilient transport system. He affirmed full support for the government's target, recognising its importance in setting a clear direction and highlighting the critical function of rail freight.

Legislative progress

The legislative framework for these changes is progressing through Parliament. The Railways Bill, which will formally establish Great British Railways, commenced its committee stage in the House of Lords on 8 September 2026. This bill is intended to grant Great British Railways the authority required to meet the new freight target, including strategic oversight of network access and specific duties to promote freight growth. A dedicated member of the Great British Railways board will also be assigned responsibility for freight matters, ensuring that the needs of freight operators and their customers are integrated into decision-making processes.

Maggie Simpson OBE, Director General of the Rail Freight Group, welcomed the announcement as a further indication of the government's commitment to expanding rail freight. She noted significant opportunities for increasing the volume of goods transported by rail and stated that the sector is prepared to meet the government's growth targets, thereby contributing more substantially to national productivity, development, and resilience.