The European Commission decided not to raise any objections to a new aid scheme which will encourage modal shift of freight from road to rail and inland waterway within the UK.

The Mode Shift Revenue Support (MSRS) scheme will thus grant financial support to intermodal services provided that they generate environmental benefits within the UK.

The scheme will be in force for five years. Its yearly budget will be around GBP 19 million for England. For Scotland, an annual budget of GBP 8 million will be shared between this scheme and the Waterborne Freight Grant scheme.

The Commission found that the proposed measure is in line with the objectives of the common transport policy, which encourages a modal shift towards a more sustainable transport system. The White Paper European transport policy for 2010: time to decide. COM (2001) 370 also emphasises the importance of giving rail and other environmentally friendly modes the means to become competitive alternatives to road haulage.