Regulator offers Network Rail £28.5bn for 2009-2014

The Office of Rail Regulation (ORR) has ruled that Network Rail should have a total budget of £28.5bn between 2009-2014.

This is the ORR's final determination for the next five-year 'control period'. A total of £26.7bn will come from government subsidies, train operators and freight companies, with the balance coming from property rent.

The figure is around £2.5bn less than Network Rail claims it needs, and only around £200m more than the ORR had previously offered.

Network Rail, which has to boost its efficiency by 21% by March 2014, now has until February to decide whether it wants to accept or reject the settlement.

It is then expected to publish a delivery plan in March detailing how it is likely to spend the money.