Mode Shift Revenue Support
MSRS assists companies with the operating costs associated with running rail or inland water freight transport instead of road, where rail or inland waterway transport is more expensive.
- Opening date:
- Closing date: (Midnight)
Contents
Summary
Mode Shift Revenue Support (MSRS) assists companies with the operating costs associated with running rail or inland water freight transport instead of road, where rail or inland waterway transport is more expensive.
MSRS is administered by:
• Department for Transport: for flows entirely within England and for cross border flows where the majority of environmental benefits fall in England.
• Scottish Government: for flows entirely within Scotland and for cross border flows where the majority of environmental benefits fall in Scotland.
• Welsh Government: for rail flows entirely within Wales and for cross border flows where the majority of environmental benefits fall in Wales.
Eligibility
Any company can apply for support if it is acting as the operator or contractor of an eligible rail service.
The scheme operates in two parts:
• MSRS (Intermodal) for the purchase of intermodal container movements by rail; and
• MSRS (Bulk and Waterways) for the purchase of other freight traffic movements by rail and all movements by inland waterway.
Objectives
The scheme is designed to facilitate and support modal shift, generating environmental and wider social benefits from reduced lorry journeys on Britain’s roads.
Dates
The main bid round for 2026/27 took place on 6 February 2026.
How to apply
Application form and details of how to apply for MSRS are published on the Freight Grants website: https://www.gov.uk/government/publications/department-for-transport-delivers-more-grant-funding-to-transport-freight-by-rail/mode-shift-revenue-support-and-waterborne-freight-grant-applications-and-background-information
Supporting information
The MSRS scheme has been extended and will now expire on 31 March 2027.
Applications can be made up to 6 July 2026, for a further funding in 2026/27.
The budget for 2026/27 is £20 million, which is allocated jointly between the MSRS and the Waterborne Freight Grant scheme.
The MSRS scheme will not be extended beyond 31 March 2027. A decision on whether this scheme will be replaced after that date will be made in due course.