The Conservative-leaning think tank the Bow Group is calling on the Government to reopen closed rail links. 

Its report, Reviving Britain’s Railways, is a boost for campaigners hoping to reinstate the railway between Penrith and Keswick, and those fighting for the newly-reopened Borders Railway in Scotland to be extended to Carlisle.

 Although calls for rail investment are hardly new, the support of the influential centre-right think tank – former ministers Lord Tebbit and Lord Lamont are patrons – could help to shift opinion within the Government. 

The Bow Group’s report sets out the benefits of re-opening lines as an alternative to investment in HS2, the proposed high-speed rail link from London to Birmingham, Manchester and Leeds. 

It argues that re-opening lines such as the Borders Railway would increase capacity, provide better links and regenerate rural communities. 

Elizabeth Anderson, the report’s author, said: “Tracks and tunnels closed in the Dr Beeching era could be vital now in improving transport links across the country, and the social benefits that this can bring by allowing people the freedom and ability to access employment or education in nearby towns, as well as increasing tourism.” 

The Waverley line from Carlisle to Edinburgh via Galashiels closed in 1969. But a 30-mile section between Edinburgh and Tweedbank reopened in September. 

Passenger numbers have been higher than expected, with 125,000 journeys in the first month, adding weight to the campaign to reinstate the rest of the route to Carlisle. 

Cedric Martindale, a railway engineer from Carlisle, has long campaigned for the reopening of the line between Penrith and Keswick, which closed in 1972. 

He argues this would bring significant economic benefits and would be relatively straightforward. 

Ninety per cent of the track bed remains intact, including all major bridges and viaducts. 

Train operator Northern Rail paid dividends of £17.8m last year as passenger revenue increased. 

The company, a joint venture between Serco and Abellio, runs trains across the north of England including the routes from Carlisle to Barrow, Newcastle and Leeds. 

Passenger revenues increased by 6.1 per cent to £243.5m in the year to January 3. 

However, income and profits were hit by a £79.4m reduction in government grants. 

Profit before tax fell by 40 per cent to £23.5m. Northern Rail's franchise runs until April 1 next year.