Funding and financing
Overview
It is also important to note that the East Sussex Rail Strategy and its investment and intervention priorities are not funded. This section sets out the potential funding and financing opportunities for the proposed interventions identified in the strategy.
The availability of funding, with consideration to the costs of development, construction, maintenance and renewals, alongside operational costs, will be a key challenge in delivering the strategy. Additionally, routes for financing, as well as how and from whom the funding is secured to meet the costs of construction as they arise, may change over the life of the Plan and Investment Plan.
As the Strategy is made up of several diverse schemes or initiatives, there is not going to be a ‘one size fits all’ funding and financing solution that applies across the programme. Over the life of the plan this strategy will provide East Sussex County Council, their partners and communities, opportunities to explore and innovate how funding can be secured and combined to study, develop, and deliver transport infrastructure interventions and initiatives.
Types of funding
Both the delivery of this strategy and constituent interventions require financial support, whether as part of capital investment or through continued operation. Consequentially, partners with responsibilities in the delivery of this strategy have a responsibility to identify and respond to funding and financial opportunities.
Funding sources
Central government bodies
Such as the DfT, provide capital funding for rail schemes directly. This funding varies due to a range of factors, which includes levels of uncertainty in the national economy, alongside competing political priorities.
The establishment of the MCCA for Sussex and Brighton in May 2026, and reorganisation of local government to create new unitary authorities across the West Sussex, Brighton & Hove and East Sussex geography by 2028, will change the powers and funding for strategic planning, transport and economic growth from central government. This section will be updated as further information and detail becomes available on both devolution and local government reorganisation.
Match funding
Can also be provided by public or private sector organisations to deliver specific interventions. These bodies also provide revenue funding, albeit at smaller volumes. Funding is generally towards resourcing, operations, research and innovation within local authorities, but also can include direct funding to private sector organisations.
Local authorities
Have significant limitations to generate revenue outside of what they require for general operations. Consequentially they are often limited to funding rail interventions funded through allocations from Government for specific schemes relating to active travel (e.g. cycle parking facilities at rail stations), or development contributions / Community Infrastructure Levy charges.
Private sector organisations
Invest in their own operations and supply chains to maintain their competitiveness within the sector they operate in. There is a need for private sector organisations to collaborate and see the opportunity for growth in an area such as East Sussex.
Private sector financing mechanisms can also be used to fund both the capital and operating requirements of transport networks, and of particular use for interventions which provide repayment or are assets likely to increase in value. However, there remains considerable risks in regard to investment undertaken in this manner, most notably due to fluctuations in loan interest rates and the appetite for financial institutions to invest in transport infrastructure.