PART TWO The financial impact of franchises on taxpayers
2.1 This Part looks at how the Department's approach to letting franchises reduces the amount of subsidy that will be payable by the taxpayer for new franchises.
Direct subsidy is paid to train operators and a grant is also paid to Network Rail and provided to support new investment programmes.
8 | Planned payment trend for eight franchises (negative amounts are premia) |
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Source: Department for Transport | |
NOTE Subsidies for the franchises or predecessor franchises in 2006-07 total £811million. The data shows planned payment values at contract signature date. All amounts in real terms for the base year and month shown for each franchise: Southeastern - February 2005; Stagecoach South West Trains - January 2006; First Great Western - October 2005; First capital connect - October 2005; East Midlands - January 2007; London Midland - January 2007; crosscountry - February 2007; NX East coast - January 2007. | |
