Hull Trains could go out of business 'permanently', with loss of 130 jobs, MPs warn

Under emergency measures announced by the Department for Transport in March, franchised train operators were offered the chance to transfer “all revenue and cost risk” to the government and be paid a small management fee to continue running services.

However as an open access operator, Hull Trains has not been given the assistance it needs to restart services under the new social distancing regime, the MPs say.

Hull Trains suspended services on March 30, saying they were not financially viable, following the huge drop in passenger numbers, after the lockdown.

In a letter to Transport Secretary Grant Shapps, MPs Diana Johnson, Karl Turner and Emma Hardy say as an operator which relies on ticket sales, Hull Trains "simply cannot restart without the support that the Government has given to others in the rail industry".

The MPs pointed out that the Government had offered to bail out Transport for London to the tune of at least £1.6bn.

And they warn that Hull Trains - which runs seven direct services a day to Kings Cross and recently invested £60m in five new Hitachi trains - “face the genuine prospect of going out of business permanently”.

“It would mean the loss of 130 local jobs at a time when we face the prospect of the deepest recession for decades,” they add, as well as sending an “unfortunate” message about the Government’s commitment to the Northern Powerhouse.

It came as rail franchise operators ramped up services on Monday, with strict social distancing limitations on numbers of passengers allowed in carriages.

Extra police and security were put on to deal with any overcrowding but but many major stations such as London Euston, Birmingham New Street and Reading were quiet during the morning peak.

Transport campaigner Adam Fowler said the worry was parent company FirstGroup "wouldn't have the money to bail them out".

He said Hull Trains was "stuck between a rock and a hard place", adding: "Even if they had permission to run trains from tomorrow they would lose a fortune. There is no market to go to London.

"We have to get them direct payments as the other operators are getting so they can continue.

"They are an essential part of the economic infrastructure and identity of this region and we must do all we can to ensure their future."

In a statement Louise Cheeseman, managing director for Hull Trains, said: “The railway network and is partners have been working with the government throughout lockdown to prepare for a safe and phased increase in rail services."

She said they continued to assess the situation "based on advice from the government and - when we are in a position to resume services – will implement all necessary precautions for the safety of our crew and passengers to start running trains as soon as we can."

The Department of Transport said they had been “engaging extensively” with Hull Trains and parent company FirstGroup “who have access to a range of measures provided by government to support businesses across the economy”.

They were keen to see Hull Trains “return to the network once conditions permit and are in continued dialogue with them on this”.

A statement added: “We have already announced support to maintain essential services on rail, light rail, and bus networks across England and continue to work closely with transport operators and local authorities to ensure that public transport is available for those who need it, including any ramp up in services required as people slowly start to return to work.

“However the advice remains clear that people should work from home if they can and avoid public transport wherever possible.”