Train operator Northern would have made a loss of more than £600m if it had not received Government support during its latest financial year, it has been confirmed.
The company, which is owned by the Department for Transport through DfT OLR Holdings after previous operator Arriva Rail North had its franchise terminated at the end of February 2020, would have fallen to a pre-tax loss of £623m without the Service Agreement subsidy of £632.6m.
The subsidy is slightly higher than the company's losses to ensure it makes a 1% margin in line with the agreement, which is invested back into the business.
