Rail strikes ‘cost £500m to the economy’ as Barrio owner says action ‘decimating’ bars

Ongoing railway strikes have cost the UK economy £500m this year, according to newly-appointed rail minister Huw Merriman.

“If we don’t get the services restored I’m worried people will give up on rail,” he told the Railway Industry Association’s conference on Thursday.

“That would be no good [for the sector] but also no good for the members of the trade unions,” Merriman said, as first reported by The Times.

Merriman was echoed by chief executive of cocktail bar operator Nightcap, Sarah Willingham, who said the strikes were “absolutely decimating” hospitality businesses.

Many high street businesses would be forced to call last orders going into 2023, she told CityA.M.

“A lot of that will be as a direct result of what’s happening at the moment,” she said, with strikes having “the biggest impact” on hospitality amid macroeconomic pressures.

Willingham, who owns the Cocktail Club and Barrio chains, called on the government to intervene and “find a solution”, saying she was sympathetic with the concerns of railway workers.

The remarks came as train drivers working at 12 train operators announced they would walk out for the tenth time since this summer on 26 November. 

Announced on Thursday by union Aslef, the industrial action at the likes of Avanti West Coast and London Overground is part of a long-standing dispute over pay. 

The union’s general secretary Mick Whelan called on the operators “to make a proper pay offer so that our members can keep up with the cost of living.”

“We don’t want to be taking this action,” Whelan said. “Withdrawing our labour is always a last resort for a trade union.”

Members of the unions RMT and TSSA decided to call off their strike late last week.

The Rail Delivery Group was approached for comment. 

Merriman, who until late October headed the Commons’ transport select committee, said the government had changed tone when it came to the relation with union leaders.

Relations between unions and former transport secretary Grant Shapps had notoriously been tense, as unions accused him several times of blocking negotiations with train operators. 

Both the former secretary and the Department for Transport have always rebutted the accusations. 

“We understand they have their members to represent but we do badly need to see this actually come to an end,” Merriman added. 

Business groups have also urged all parties to come together on a resolution, with UKHospitality chief executive Kate Nicholls describing strikes this week as “a week of misery for both businesses and commuters.”

Pubs and restaurants, who are already facing an existential threat due to mounting costs, “continue to lose customers who can’t travel and they struggle to serve the ones that do visit, due to staff being unable to get into work,” Nicholls said.

Footfall in cities continues to be “well down” on pre-Covid levels and “stifling that even further through strikes is incredibly damaging to businesses,” she said.

“At a time when hospitality businesses are grappling with soaring costs and chronic staff shortages, the cumulative effect of strikes by rail and tube workers is enormous. Businesses 

“Footfall in cities across the country still remains well down on pre-pandemic levels and stifling that even further through strikes is incredibly damaging to businesses. This is even more pronounced today, typically one of the busiest trading days in the working week.

“It’s essential that all parties now work together to come to a resolution that can ensure further rail and tube strikes are avoided at all costs.”