Up to 18 jobs to go in compulsory redundancies at Severn Valley Railway

The Severn Valley Railway (SVR) announced in January that the company, which operates in Shropshire and Worcestershire, was planning voluntary redundancies amid rapid rising costs and a drop in visitor numbers.

The railway said at the time it hadn't ruled out compulsory redundancies but "was working hard to avoid them". It also announced a reduction in the number of days that trains would run on the heritage line.

Now the railway has admitted that it needs to find an additional £300,000 in cost savings over the next 12 months on top of the £650,000 it has already managed to save, leading to the job losses.

While SVR relies heavily on its army of unpaid volunteers, it employed around 70 people on paid salaries before its current financial woes.

Helen Smith, the outgoing managing director, says she has been working closely with interim MD Johnathan "Gus" Dunster and planning a "large-scale reduction in salary costs" on top of the cuts to services.

She said: “We know that the timetable of reduced running days and reduced services does not sit comfortably with everyone, but it is absolutely necessary to help cut costs this year.

"It will be reviewed in mid-May, and if appropriate and the demand is there, we can increase what’s on offer.

“The timetable reductions are just one of the ways in which the railway is ensuring it can meet the financial challenges ahead. Others include an ambitious reduction of utility costs, only carrying out essential work on rolling stock and infrastructure and a large-scale reduction in salary costs.

“Taking 2022 and 2023 together, existing measures mean we will have identified a saving of £650,000 in staff costs. This has been achieved by not filling vacancies, and redeploying existing staff to cover. We are also having to allow for a significant statutory increase to minimum wage levels."

But she added: “However, the board tasked Gus, the senior leadership team and me with making an additional £300,000 in staff cost savings this year.

"This means we are about to begin a consultation period for compulsory redundancies, likely to affect up to 18 paid roles, across the railway and at all levels.”

Mr Dunster added: “SVR (Holdings) Plc is working extremely closely with both the SVR Charitable Trust and the SVR Company Ltd.

"The charitable trust will make significant contributions this year, and we are extremely grateful to the SVR Company Ltd for their donation of £40,000 towards our utility costs – although to set this generous amount in context, it only accounts for 16 per cent of what we need to save.”

The railway is currently in its annual maintenance shutdown period – due to reopen on Saturday, March 4.

When it reopens, SVR plans to run three different timetables during 2023.

Timetable A will see all-steam trains between Kidderminster and Highley only run at weekends in March due to infrastructure work at the north of the line.

Timetable B operates from the reopening of the full line in April on all dates except "themed" weekends. It will feature four full-line services in each direction, with one steam and one diesel locomotive in use.

Timetable C will operate for the Open House Weekend (April 1 and 2) and the Spring Model Railway Weekend on May 6 and 7. It will feature six full-line services in each direction on Sundays, and seven on Saturdays with an extra early evening service. One steam and two diesel locomotives will be in use. It includes a morning departure from Bridgnorth and Hampton Loade.