LONDON — Eurostar passengers travelling between London and the continent could
face higher fares thanks to a U.K. government tax raid on the Channel Tunnel.
Eurotunnel, the company which owns the under-sea link, says a business rates
revaluation on its infrastructure will effectively treble its payments and see
it paying 75 percent tax on new investments.
The infrastructure firm says costs will be passed onto operators through higher
access charges for trains using the tunnel — raising overheads that are likely
to be passed onto passengers.
Rail operator Eurostar said the plans “would be at odds with the Government’s
ambition” to promote rail travel.
Rail freight will also be hit as Eurotunnel warned plans to bring an east London
goods yard back into operation would have to be cancelled.
It comes as the U.K. braces for a budget of tax rises, with Chancellor Rachel
Reeves expected to focus on smaller, specific revenue raising measures after
cancelling a planned general hike in income tax.
‘NOTHING LEFT TO INVEST’
Eurotunnel says the Valuation Office Agency (VOA), which sets business rates for
the government, hasn’t been transparent about the rise in its payments, which
from April are set to go from £22 million to £65 million.
The company says access charges are decided by a set formula taking business
rates into account, and that they would inevitably rise as a result.
“All of the users of the tunnel pay for access. When business rates go up,
that’s split amongst the different users,” John Keefe, director of public and
corporate affairs at Eurotunnel, told POLITICO.
“At this stage, the numbers aren’t one hundred percent known, because we’re
hoping we can talk a bit more with the government about this and about bringing
a bit more pragmatism into it. But there is a mechanism whereby everybody
contributes.”
Higher charges for tunnel users would also hit Virgin Trains, the new challenger
operator hoping to start running competing services to Paris, Brussels and
Amsterdam through the tunnel by 2030. The second operator got the green light
just last month with the aim of reducing fares and increasing competition on the
key international rail route.
“Since 2017 we’ve had, over three valuations, a nine-times increase in the
valuation. This time it’s gone up, multiplied by three, from £22 million that we
pay at the moment to £65 million, which is the ask,” Keefe said.
“It needs to be based on what business can actually pay, generate and pay and
still invest. Because if you take all the money in business rates, there’s
nothing left for investment. So there’s nothing left for growth.
“While we’re hearing leading up to the budget, ‘growth, growth, growth, growth,
growth’, nobody can invest at that level.”
Eurotunnel also complains that the VOA’s calculations are “opaque beyond
belief.”
“They say, ‘here’s the number.’ And you go, ‘why did you get the number? How did
you get to that number? What numbers are you using?’ And they go, ‘there’s the
number’,” Keefe said. POLITICO has contacted the VOA for comment.
FREIGHT INVESTMENT PAUSED
Eurotunnel was planning to reopen Barking rail freight yard in east London to
make running freight on trains through the tunnel a more attractive proposition
— in line with the government’s own target for a 75 percent increase in rail
freight.
But Keefe said: “The sums just don’t add up when you’re paying a 75 percent
marginal tax rate. So it’s unfortunately going to be frozen.”
A spokesperson for Eurostar, the high-speed rail operator, said: “Our priority
is enabling more people to travel sustainably, which includes offering
affordable lead-in fares and products, and we remain fully committed to our
growth plans regardless of the VOA review.
“Eurostar continues to engage with the Government and the Valuation Office
Agency and is determined to find a positive way forward. However, a three-fold
increase in business rates for Channel Tunnel users for the second time would be
at odds with the Government’s ambition of economic growth, pioneering European
rail connectivity, and encouraging low-carbon rail travel.
“Throughout our conversations, we have urged fairness by treating international
rail in the same way as domestic rail in business rates terms. Nevertheless,
Eurostar continues to commit to its own ambitious growth plans and investments
including €2bn in new fleet and new destinations of Frankfurt and Geneva direct
from London.”
Tag - High-speed rail
LONDON — Since Labour swept into office last year, Energy Secretary Ed Miliband
has traveled the country enthusing over the government’s dream of a humming,
futuristic net-zero economy.
The good news, according to polling released Wednesday, is that his vision still
has the backing of the public.
The bad news is that support is slipping — and voters aren’t convinced Miliband
is the guy to deliver it.
For Miliband’s political opponents, this validates their wider attacks on him as
an out-of-touch climate warrior, flogging a net-zero dream voters have rejected.
At Reform’s party conference Friday, party chair David Bull referenced “mad Ed
swivel-eyed Milliband.” Not to be outdone, the Conservatives have vowed to
squeeze every molecule of oil and gas from beneath the North Sea, deadly
heatwaves be damned.
But it also shines a light on a confusing feature of British politics: a
misalignment between the stories politicians want to tell about efforts to stop
climate change, and stuff the public actually care about.
At Reform’s party conference Friday, the party chair David Bull referenced “mad
Ed swivel-eyed Milliband.” | Leon Neal/Getty Images
The polling, conducted by progressive think tank More in Common and the Climate
Outreach NGO, found the number of people who think reaching net-zero emissions
will be good for the U.K. vastly outnumber those who think it will have a
negative effect — 48 percent versus 16 percent.
More people feel that the shift to clean energy has been fair than unfair. In
Scotland, more are proud of the offshore wind industry (63 percent) than the oil
and gas industry (54 percent).
“Those who seek to divide communities with climate disinformation will not win
because they do not represent the interests or values of the British people,”
Miliband said in a statement shared with the media.
Despite this, voters are hesitant about the personal impact of a country rushing
to go green. Seventy-four percent of people think the U.K.’s commitment to reach
net-zero emissions by 2050 will eventually cost them money personally. The gap
between those who think it will be beneficial for the U.K. versus harmful has
shrunk by 20 points in only a year.
This is frequently interpreted as a sign that a personal desire to help fix the
climate is butting up against the hard realities of net zero, which requires
changes like fitting millions of heat pumps and EV chargers and overhauling the
energy grid.
Further polling released by The Times Tuesday backs up the sense voters are
growing more divided on climate change. It shows support for net zero collapsing
among Reform and Conservative voters, while overall the issue has slipped from
voters’ list of top concerns.
But analysts from Climate Outreach said part of the problem isn’t the message
but the messengers.
“Politicians are not well trusted to speak about climate,” the NGO said in an
analysis shared with POLITICO. In fact, elected leaders were the least trusted
carriers of the climate message — beneath also-lowly ranked protesters and
energy company executives.
TRUST ISSUES
Voter wariness about pro-climate messages isn’t a feature of green politics in
particular, said Emma James, a researcher at Climate Outreach, but a symptom of
broader public cynicism about government.
“They don’t trust that politicians are there for people like them. Some audience
segments feel that the system is rigged against them,” she said.
It’s not net zero the public aren’t buying, it’s the ability of this government
— or any government — to deliver it. Voters believe the NHS remains broken.
National projects like high-speed rail lines and nuclear power stations keep
being delayed at higher and higher costs.
This creates a problem for Miliband. At a time of deep voter skepticism, his
Department for Energy Security and Net Zero (DESNZ) is pursuing precisely that
kind of major national project — involving upfront costs, disruption and complex
trade-offs, with the promise of huge savings to private and public purses down
the line. It will, Miliband argues, generate new jobs.
Under Rishi Sunak, the Conservatives went in search of their own set of climate
salespeople. | Carl Court/Getty Images
“We will win this fight by showing the visible benefits of the clean energy
transition,” insisted one Labour official, granted anonymity to discuss the
government’s internal deliberations.
The story of failure, however, is pervasive and self-reinforcing, said Richard
Johnson, a political scientist at Queen Mary University of London.
“Policy delivery has to be tied in with a compelling political narrative and the
political leadership that can tell that story and interpret what people are
seeing in front of their eyes,” he said. “I wonder now if there is such a high
level of cynicism … that even if you did tell a compelling narrative around
policy delivery, that people would not believe it.”
Johnson lays the blame with Miliband’s boss, U.K. Prime Minister Keir Starmer,
“who has been in a way almost catastrophically unable to put together a
compelling narrative for his government. Or, quite frankly, even his own
leadership.” Downing Street says it is focused on driving economic growth across
the country.
This is not isolated to Labour. Under Rishi Sunak, the Conservatives went in
search of their own set of climate salespeople — before deciding that there was
more political capital in ditching pro-climate policies.
Climate Outreach said Miliband could turn this problem into an “opportunity,” as
long as he laid off the grand projet and focused on the visible, local benefits
of climate policies.
And there is some evidence that Labour gets it, seen in the government’s move to
chip in for the energy bills of people living in sight of unpopular new
electricity pylons.
The more conservative or skeptical parts of the British electorate still had
deep enthusiasm for messages about protecting the environment, the pollsters
said. But most important, the NGO argued, was bringing other voices into the
frame.
While politicians are viewed very dimly indeed, experts and scientists are seen
as credible messengers, the polling shows. So too are those seen to understand
what life is like for normal British people. Farmers were among the messengers
who cut through most with traditionalists and those described by the pollsters
as “patriots.”
Jeremy Clarkson, DESNZ needs you.
BRUSSELS — It’s summer. You’ve hopped on a train to glide through Europe, laptop
open, to-do list ready — but the onboard Wi-Fi has other plans. Emails don’t
send, pages don’t load, and streaming? Forget it.
European rail companies often tout connectivity in trains as a perk, but for
many passengers, it’s still an exercise in patience over productivity.
“The performance and quality of Wi-Fi onboard European trains is very poor,”
Luke Kehoe, an industry analyst at connectivity intelligence firm Ookla, told
POLITICO.
The high speed of a train makes it predictably difficult for Wi-Fi antennas in a
carriage — or your smartphone — to keep a steady connection between changing
mobile towers.
“If a train is going at 200km an hour, the device could be crossing a cell site
every 45 or 60 seconds, which is a rapid turnover,” Kehoe said. “What that
introduces is a technical challenge called the Doppler effect.”
That is when moving fast changes the signal’s frequency— like when a siren
shifts pitch — and it can mess with the ability to hold onto a stable
connection.
The high speed of a train and density of towers make it predictably difficult
for Wi-Fi antennas in a carriage — or your smartphone — to keep a steady
connection between changing mobile towers. | Stefano Guidi/Getty Images
On French SNCF trains, travelers logging onto the Wi-Fi receive a pop-up
warning: “Due to the lack of coverage and our speed, the quality of the Wi-Fi
may differ from that in your home.” It also advises against watching online
videos, which “contributes to limiting the bandwidth.”
‘HELLO? YOU’RE BREAKING UP …’
But bad train Wi-Fi isn’t just about pace or tower count. Many cabins aren’t
actually designed to let radio frequencies in. “A lot of trains would have
historically used windows that have metalized or [low-emissivity] glass coatings
that are inherently not conducive to signal propagation,” Kehoe said.
That setup would make the cabin similar to a sort of Faraday cage — an
electromagnetic armor that blocks wireless signals, much like what causes your
phone to drop calls in an elevator or keeps microwave radiation from escaping.
Last year, Belgian rail firm SNCB gave up on setting up Wi-Fi on its trains
because of the “high implementation costs and coverage by telecom operators,”
spokesperson Tom Guillaume said.
Instead, SNCB decided to pass the buck to telecom companies while it invested in
“de-coating” glazing that is more conducive to mobile signals. “Telecom
operators, therefore, need to improve signal quality and coverage in the
vicinity of railway infrastructure,” Guillaume said.
The physics of radio frequencies are also well established: The band commonly
earmarked for 5G in Europe isn’t great at cutting through trees and leaves,
which often line train tracks. It makes it more challenging to reach cabins or
phone users directly, in contrast with 4G, where the lower-band frequencies
typically used can’t carry as much data, but travel further and handle obstacles
better.
“We see in our data every summer a significant degradation in mobile network
performance in areas of heavy foliage,” Kehoe added.
Add in the thousands of tunnels in the continent’s network, and it’s clear
European trains have a tough job delivering solid Wi-Fi — though some countries
manage to handle it better than others.
Switzerland leads the way by far, with onboard Wi-Fi speeds nearly 30 times
faster than in Austria and the Netherlands. It was the only country in Ookla’s
sample to break the 25 megabits per second median download speed mark — the
minimum baseline for reliable internet use.
TRAINS ARE IN FOR AN UPGRADE
Some rail operators are now looking to the skies — literally — for better
onboard internet, turning to satellite providers to help fill coverage gaps
along train routes.
Czech Railways is experimenting with Elon Musk’s Starlink network, while
France’s SNCF is reportedly eyeing both the U.S. constellation and its
Franco-British rival, Eutelsat. SNCF didn’t respond to POLITICO’s request for
comment.
While satellite connectivity works well for airlines — thanks to clear skies and
proximity to orbit — it’s not a “bulletproof solution,” Kehoe said, but rather a
supplement to the overall connectivity mix.
“So much of the focus is about getting the signal to the train, but they have
forgotten about getting the signal around the train,” he said.
The Wi-Fi equipment and the standards behind it play a major role in how good
the connection actually is.
Connections sampled by Ookla in Poland — which ranks near the bottom for
performance — showed trains still running on Wi-Fi 4, a 2009 standard that
offers far less bandwidth and much slower speeds than newer generations.
Whether rail operators upgrade routers or windows, “if there is no network
coverage, there will be no mobile signal in the train, regardless of the
technology used,” SNCB’s Guillaume said.
And if you’re thinking of just using your phone’s hotspot to get around a flaky
Wi-Fi connection — think again. “If everyone is broadcasting their own Wi-Fi
networks, there is a massive interference challenge here,” Kehoe warned.
Train internet still sucks — and getting a full steam ahead connection on
Europe’s rails is set to remain hit and miss for a while.
Hanne Cokelaere contributed to this report.