Logistics UK responds as rail, inland water and sea freight revenue support extended to 31 March 2026

The MSRS scheme has proved highly successful for moving goods by rail since it was introduced in 2010 but was initially due to finish at the end of March 2025. The grants have been less successful in moving goods by water.

The DfT initially asked for evidence during a review of the scheme over twelve months ago, to understand its effectiveness better as it looked to either update or end the scheme with several industry groups at the time urging the government to continue supporting it, including Logistics UK and the Rail Freight Group.

The scheme helps with costs of moving freight via rail or water rather than by road. Last year, DfT funded the scheme with grants up to £16 million. It currently has a budget of £20 million but the DfT has yet to confirm the scheme’s budget for 2025/6. The scheme was cut from the Scottish government budget in 2024 and has not yet been reintroduced.

Logistics UK's Senior Policy Manager Alexandra Herdman said: "Rail and water freight are essential parts of the supply chain. While Logistics UK welcomes DfT's announcement that it is extending the MSRS and the WFG for another 12 months, this announcement is long overdue.  

“Both MSRS and WFG need to be updated to respond more effectively to modern supply chains. Freight Facilities Grants are another key piece of the puzzle that would give operators greater certainty to invest and ultimately support growth of freight by rail and water.  

"We look forward to further engaging with DfT on the future grants and how they can better support the safe and efficient movement of goods across GB.”

The DfT has been looking at ways of simplifying the grants system for rail freight, whilst simultaneously encouraging growth. Last August, Network Rail announced a six-month scheme to waive track access charges for new rail freight entrants which has also proved successful. Logistics UK has been calling for a level playing field for rail freight and this discount is a welcome starting point.

Freightliner was the first to launch a service between Tilbury and Manchester Trafford Park as part of the scheme with others to follow. That scheme’s future is currently unclear though, with Network Rail unable to confirm if it will continue past its current end date of April.

The DfT is also understood to be reviewing the possibility of launching a scheme similar to the Freight Facilities Grant which DfT shut down over ten years ago, although has had recent success in Scotland. The grant helps companies with the capital costs associated with moving freight by rail or water instead of road, by offsetting the extra costs of providing freight handling facilities. It has helped fund rail and water freight facilities in Blackford, Perthshire and Dunbar in East Lothian over the last five years. Logistics UK is supporting the reintroduction of this grant in the Scottish government budget for 2025/26, although it will only be in place for this financial year.

Published On: 20/02/2025 14:42:41

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