This article explains the decision of the Office for National Statistics (ONS) on the National Accounts sector classification of Great North Eastern Railway Limited (GNER). After suffering financial difficulties at the end of 2006, GNER's contractual relationship with government was amended. As a result, from 10 December 2006, GNER has been reclassified from the private sector to the public sector.
Consideration of this classification case has also resulted in a decision to reclassify franchise premium payments from any train operating company to government. All franchise premium payments will be reclassified as a tax from their inception in 1996. Previously these payments had been classified as rent.
Published in web format: 20 November 2007 at 9:30 am
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