RAIL spending in the North is being overshadowed by that in London despite hefty subsidies for some of the region’s train operators.

Figures from the Office of Rail and Road showed Northern Rail and First TransPennine Express operating companies received £112.7m and £43.5m in Government subsidy respectively in 2014/15.

The majority of rail operating companies, including Virgin East Coast and Cross Country, actually pay into the Treasury for the privilege of running services.

However, lobby group IPPR North said while it appeared the Government was subsidising services in the North over those in the South, in fact spending overall on rail infrastructure was lower than average and had in fact been cut.

Analysis by the group showed that in 2013-14 rail spending per head across the North was £84, compared to London’s £298 and the UK average of £105.

Government spending on the railways was rising and was up in London by £224m between 2012-13 and 2013-14, but had fallen by £47m in the same period in the North.

Luke Raikes, a research fellow with IPPR North, said: “Despite the subsidies, Northern passengers still travel to work on overcrowded Pacer trains and face sluggish journey times and connections between major towns and cities.

“If the North is to grow and prosper then it needs investment in a modern, efficient rail network.

“This highlights the need for some of these responsibilities to be devolved with more decisions about the North’s transport infrastructure being made in the North.”

A Government spokesman said it had an “ambitious one nation” plan to transform transport infrastructure.

He said new franchises for Northern Rail and First Transpennine Express, which begin in April next year, would bring massive improvements for passengers, including scrapping the unpopular Pacers and introducing a new fleet of trains.