Rail strikes could cost businesses in Cornwall and South West £3m, experts warn

The region's Business Council fears our hospitality industry could feel the impact of walkouts, staff shortages, inflation and Brexit for six months

Author: Emma HartPublished 23rd Jun 2022
Last updated 23rd Jun 2022

Experts have warned that based on previous disruption, rail strikes could cost businesses in Cornwall and the South West £3million to date.

We have spoken to the South West Business Council as the second of this week's planned walkouts gets underway.

No trains are running in the Duchy on Thursday 23rd June, with Great Western Railway and CrossCountry both having cancelled services on the main and branch lines.

Thousands of staff across the country are taking part in industrial action over pay, jobs and conditions, after Wednesday's talks failed.

Network Rail says it cannot afford a 7% pay rise, however unions say their members need an increase that keeps up with soaring prices in the shops.

The RMT union also says it cannot move forward with negotiations to avoid more rail strikes until compulsory redundancies are ruled out.

The South West Business Council is warning that it could take our region's hospitality industry six months to recover from the walkouts, staff shortages, inflation and Brexit.

Chairman Tim Jones said: "People are really now struggling to work out how on earth they're going to survive the next six months rather than what we need them to be doing, which is providing a fantastic offering for hospitality, tourism and leisure - just coming into the peak market for that - and investing for the future.

"When you've got these massive dislocations to market activity - and infrastructure is so important to us - this is not only bad timing, but a very big problem that is going to impact for a long time on many businesses.

"The way in which many of our businesses make their money is during the summer; that's a fact of life. We have a high dependency on hospitality, tourism and leisure and the visitor economy is a key element of the Cornish economy, North Devon economy, Torbay economy; it's vital that communication routes are open and that we've got easy access to the region.

"Many people are still nervous about Covid, many people are worried about flights internationally and the issue, therefore, of a really efficient infrastructure network, which includes road and rail - so good road networks and no dislocation of travel - but the rail activity is critically important and many people use that option".

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