Research commissioned by train operator Great Western Railway (GWR) has shown that UK railway stations could facilitate one million jobs and bring £79 billion in economic value  within the next ten years.

The report, called Growing Places, sets out the findings of research carried out by consultancy Development Economics, and analysed eleven locations on the  GWR network.

It analyses how railway stations function as “anchors for growth”, and reveals what GWR calls the ’Rail Catalyst Effect’ – the way that stations “act as catalysts for investment, opportunity and prosperity”.

The study considered how development around railway stations creates demand for and supports new homes, businesses and skilled jobs. The case studies included in the report research ar used as examples to model the economic impact of regional rail investment across the country. 

UK unemployment currently stands at 5.2%, the highest rate in five years. In this context, the report will help to make the case for continued investment in the railway, by showing that this supports regional economies and enables prosperity for communities around Britain.

Railways: a national growth engine 

The researchers found that development around stations could support more than a million permanent jobs by 2036. This would generate £78.7 billion for local and regional economies.  

The report predicts that 82% of the projected economic value (about £64.6 billion) will be generated near larger stations. These are stations with at least 580,000 passengers a year, and include Cambridge South and Birmingham Interchange. 

Construction work near regional stations is expected to contribute £7.1 billion, which will provide an immediate boost to jobs, businesses and supply chains. 

Powering regional prosperity 

Researchers applied this model across the Great Western Railway network, which produced projections of railway stations creating 238,000 jobs and £14.25 billion in annual economic value by 2036. A lot of this will be in high-skilled sectors such as professional services and technology. Stations will give many people the chance to work closer to where they live. 

Considering nine stations in the South West of England and South Wales, researchers found that development within 800 metres of a station has led to the building of 3,500 new homes and 67,000 square metres of commercial space, supported 4,500 jobs, and generated £328 million in annual economic value. – all within the last five years.

The report projects that new stations in Wales, such as Cardiff Parkway and Newport West, will generate 900 permanent jobs and about £64 million each year over the next ten years. New stations in the South West of England, which include Okehampton Interchange and Marsh Barton, are projected to generate 1,500 permanent jobs and around £112 million each year over the next decade. 

Driving social value 

Railway stations play an important role in improving social mobility and widening opportunity. This is particularly the case for the 22% of English households which do not have access to a car.

“Across the South West and Wales and the UK as a whole, rail plays a critical social and economic role in the communities it serves. It connects people to jobs, skills and education, and supports housing growth by linking new and existing communities to centres of employment. At the same time it underpins sectors like construction, enabling the movement of materials and people we need to build the places we live and work in. It sustains our vibrant hospitality and tourism economy by bringing visitors into our towns, cities and coastal communities. For many businesses, reliable rail services are not simply a convenience; they are part of the foundation on which investment decisions are made”.

Jon Shaw, Professor of Transport Geography at University of Plymouth, and Chair of the Devon & Cornwall Rail Partnership