Rail Reform Bill published

[JaJaWa]

Ministers set out blueprint for future of the railways through draft Rail Reform Bill
Draft bill sets out blueprint for bringing track and train together under a new Great British Railways, leveraging private sector innovation to benefit customers.

From: Department for Transport and The Rt Hon Mark Harper MP
Published: 20 February 2024

Ministers have today (20 February 2024) put forward a clear plan for the future of the railways, publishing a draft Bill for pre-legislative scrutiny.

The draft Rail Reform Bill sets in motion the plan to deliver a bold vision for future rail customers – of punctual and reliable services, simpler tickets and a modern and innovative railway that meets the needs of passengers and freight users. When passed, it will help deliver on the 2019 manifesto commitment by bringing forward the biggest rail reform programme in a generation to create a simpler, more effective rail system.

Since the end of the nationalisation seen under British Rail, passenger numbers have doubled and the quality of rolling stock has vastly improved. To meet the demands of a modern economy and society, we need our railways to be more responsive and more efficient, more adaptive to technology and innovation, and to fully embrace the private sector and its benefits.

The draft Bill will see the creation of Great British Railways (GBR), which will bring together responsibility for both rail infrastructure and services. This will provide clearer lines of accountability and help build a more modern and financially secure sector and a network that is more adaptable and more efficient.

GBR will ensure passengers and freight benefit from industry expertise through a whole-system approach that will drive financial efficiency. When established, GBR will be the new franchising authority, contracting with the private sector to deliver passenger services and maximise investment, innovation and opportunity.

The reforms will improve connectivity and choice for passengers, including by encouraging private sector open-access operators, where they add value for passengers through more direct links and more options.

The bill applies mainly to Great Britain, with Scottish and Welsh ministers continuing to exercise existing devolved responsibilities, but with an option to delegate contracting authority to GBR to enable the integration of track and train across Great Britain if they wished to pursue it.

Transport Secretary, Mark Harper, said:

It’s been nearly 200 years since the birth of the British railways and with travel patterns having significantly changed over the last few years, it is now more important than ever that they keep up with the changing times.

This draft bill demonstrates our commitment to reforming the railways – working with industry, we will move towards a more modern and financially secure rail network that delivers for passengers for the next 200 years, too.

The draft Rail Reform Bill will now undergo pre-legislative scrutiny to provide parliamentarians and industry experts the opportunity to review and provide feedback on the legislation. This will allow for time to understand the complexities of these reforms and ensure that the final legislation is as robust as possible. Scrutiny will be led by the Transport Select Committee.

The national headquarters of GBR will be in Derby, which was chosen following a rigorous assessment process and public vote, and will deliver yet more high-skilled jobs to the city. Since it was set up in 2021, the Great British Railways Transition Team (GBRTT) has already helped lay the foundations for bringing track and train together, uniting expertise from across Network Rail, DfT and the private sector to help tackle the challenges faced by the railways.

GBR will also be tasked with driving forward the UK’s rail freight sector, where the government recently set an ambitious target of 75% growth by 2050.

Many reforms and tangible improvements for passengers are already being delivered. For example, Pay As You Go is currently being rolled out to more stations across the South East and the government recently announced that pilots will also see tap-in tap-out train travel brought to more than 90 stations in the West Midlands and Greater Manchester next year.

These trials will also pave the way for the future rollout of similar technology to more stations across the North and Midlands, funded in part by £100 million under the Network North plan. Network North will see a range of other upgrades to the rail network, including a further £350 million to improve the accessibility of up to 100 rail stations while funding reallocated from HS2 also means that the government can now support the Ely Area Capacity Enhancement scheme that could allow up to an extra 6 freight trains per day to and from the Port of Felixstowe – the equivalent of taking 98,000 lorry journeys off the road every year.

Along with the draft Rail Reform Bill, the government’s response to the public consultation on its Plan for Rail is also being published. This sets out how the public’s views on the proposed reforms have informed what has been taken forward in the draft legislation. The new GBR will bring a whole-system view, benefiting customers and taxpayers and balancing the needs of operators and infrastructure. Across the many responses we received from individuals, industry and organisations there is support for the proposed primary legislative changes set out in the consultation.

Taken together the draft Rail Reform Bill will enable:

More accountability through the establishment of GBR by bringing together the management of the network and the commissioning of passenger services into a new public rail body that puts customers first and delivers efficiency. The Secretary of State for Transport’s franchising authority functions will be transferred to GBR, ensuring that operational and infrastructure decisions are made in a coordinated way. The new body will serve as the single point of accountability for the performance of the railway where previously it was split between Network Rail and the Secretary of State.

Better service by bringing track and train together enabling the sector to run as one system for the benefit of customers and taxpayers. Whole system strategic decision-making should lead to improved reliability and performance of passenger and freight services. GBR’s regional structure is intended to ensure differing regional customer needs are part of decision-making.

Smarter growth of the sector, as GBR will be a commercially-focused organisation that will contract with the private sector to maximise investment and innovation throughout the sector. This includes improving connectivity and choice through more direct links and more options for passengers.

Greater efficiency by working in close partnership with the private sector to deliver a more efficient, modern rail system underpinned by better collaboration and aligned incentives, generating value and savings that will have benefits for passengers and taxpayers.

Improved focus on customers through specific accessibility and freight duties to ensure that accessibility on the railway is improved and the experience for disabled passengers is enhanced. Rail freight will be targeted for growth, recognising the sector’s economic benefits and potential for expansion.

Andrew Haines, GBRTT Lead and CEO of Network Rail, said:

Passengers, freight customers and communities are crying out for a simpler, better railway and the publication of the draft bill is an important step on that journey.

Bringing track and train together under a guiding mind is by far the best way to improve the service the railway offers, unlock the economic potential of a growing network and reduce the burden on the taxpayer.

Jacqueline Starr, CEO of RDG, said:

It is good news that the draft Rail Reform Bill has been published, this is another important step in setting up GBR and moving forward with the agreed reforms to improve the railway for the customer.

The challenges facing the rail industry are well known, but rail is a vital service and should have a bright future if we work together. I look forward to working with the government to further develop the reforms needed to deliver for customers.

Source: https://www.gov.uk/government/news/...f-the-railways-through-draft-rail-reform-bill

 

[Bletchleyite]

I've only scan-read this, admittedly, but is it me or does this just read like a return to the Strategic Rail Authority and franchising, just under a different name? It certainly reads to me like it does.

Most notable is that it specifically excludes awarding of contracts to public bodies.

Will there be sufficient Parliamentary time to pass this?

 

[Danfilm007]

I've only scan-read this, admittedly, but is it me or does this just read like a return to the Strategic Rail Authority and franchising, just under a different name? It certainly reads to me like it does.

Most notable is that it specifically excludes awarding of contracts to public bodies.

Will there be sufficient Parliamentary time to pass this?

As it is only being brought as a draft, I think it will be brought into the next Parliamentary session (post-GE effectively)

Within the document "DELEGATED POWERS MEMORANDUM: RAIL REFORM BILL" on Page 3, it says

"Secretary of State Transfer Scheme To empower the Secretary of State to make schemes for the transfer of property, rights and liabilities from and to certain specified persons, including an IRB, a proposed IRB and a former IRB (depending on the context). [This provision has not yet been developed but will be included should this draft Bill be formally introduced in a future parliamentary session."

I.e. when it is brought to a session formally.

 

[AdamWW]

Ah. "simpler tickets" tickets.

I think most of us know what that means.

 

[Verulamius]

I've only scan-read this, admittedly, but is it me or does this just read like a return to the Strategic Rail Authority and franchising, just under a different name? It certainly reads to me like it does.

Most notable is that it specifically excludes awarding of contracts to public bodies.

Will there be sufficient Parliamentary time to pass this?

The concept is that Network Rail would be the IRB rather than a separate franchising entity.

 

[43066]

Will there be sufficient Parliamentary time to pass this?

I think it’s already been suggested that there won’t be, so this is presumably a strategy to create a point of difference with Labour, who still seem to be dithering over nationalisation.

 

[Snow1964]

Statement to Parliament

I am pleased to lay the government’s response to the consultation on legislation required to deliver rail reform today (20 February 2024). I am also publishing the draft Rail Reform Bill today, ahead of pre-legislative scrutiny, which will be carried out by the Transport Select Committee. I have deposited copies of both of these documents in the libraries of both Houses.
The railways are a vital part of the transport system of Great Britain. They support over a billion journeys, employ over 100,000 people and carry millions of tonnes of freight. Rail touches all corners of the country, connecting communities and forming an iconic part of our industrial heritage.
The public rightly expects ever more from our railways, but what has adapted over time now needs legislation to set the foundations for further progress in order to establish Great British Railways (GBR). To meet the demands of a modern economy and society, we want to be able to make the most of our investment in railway infrastructure, such as the investments that will come from Network North. GBR will be best placed to optimise the railway to work effectively as a whole system, to make our railways more reliable, more efficient and more adaptive to technology and innovation, as well as fully embracing the private sector and its benefits.
Whilst primary legislation is needed to establish GBR, many reforms and tangible benefits for rail users can be delivered now. We are simplifying fares and continuing the rollout of Pay As You Go and barcode ticketing, building local partnerships. We have set a new Rail freight growth target and we are simplifying industry practices, reforming the commercial model and taking forward workforce reforms. We launched the second GBR sale last month, which delivered real savings to rail passengers across Great Britain.
The consultation sought the views of industry and stakeholders on the primary legislative changes required to establish GBR, which will be a new customer-focused, commercially-led arm’s length body that brings together accountability for the railways. We received nearly 2,500 responses and have carefully considered these in creating the draft bill to ensure the reform of our railways is in the best interest of customers and the taxpayer whilst securing benefits for the industry and its workforce.
The draft Rail Reform Bill sets in motion the plan to deliver a bold vision for future rail customers – of punctual and reliable services, simpler tickets and a modern and innovative railway that meets the needs of the nation. When passed, it will help deliver on the 2019 manifesto commitment by bringing forward the biggest rail reform programme in a generation to create a simpler, more effective rail system. It will see the creation of a commercially focused GBR that will leverage private sector innovation to help deliver a better offer for customers.
GBR will have responsibility for infrastructure, operations and oversight of whole industry finance where it is the franchising authority. It will be adaptable to changing customer needs, working in close partnership with the private sector (including train operating companies, freight operators, suppliers and innovators) to deliver a more efficient, modern rail system underpinned by better collaboration and aligned incentives, generating value and savings that will have benefits for passengers and taxpayers.
Given the scale and complexity of the changes being made to the sector, it is absolutely right that the draft bill undergoes pre-legislative scrutiny to provide parliamentarians and experts across industry with the opportunity to review and test the legislation in draft. I am confident that the measures in this draft bill will help deliver a simpler, more effective rail system and am, therefore, pleased to commend it to the House today for pre-legislative scrutiny.
Published 20 February 2024

Government response to the consultation on rail reform legislation and draft Rail Reform Bill

Draft bill sets out blueprint for bringing track and train together under a new Great British Railways, leveraging private sector innovation to benefit customers.

www.gov.uk

 

[Bletchleyite]

The concept is that Network Rail would be the IRB rather than a separate franchising entity.

So what's GBR, then? Or would Network Rail encompass that too?

 

[renegademaster]

So what's GBR, then? Or would Network Rail encompass that too?

Yeah , GBR is Network Rail + the franchising arm of DfT it looks like

 

[Scanderina]

So what's GBR, then? Or would Network Rail encompass that too?

Yes - GBR would be an expanded Network Rail (transferring DfT's franchising powers into the new body). Obviously this is not the way the govt pitches it.

 

[LNW-GW Joint]

So what's GBR, then? Or would Network Rail encompass that too?

GBR is the "brand name" for the IRB, and will have franchising/contracting powers devolved from DfT.
However, the SoS retains the power to set/agree service specifications and contract awards, so has power of veto.

I think the IRB is more than Network Rail, especially as they were at pains to say that at the launch of GBR.
I think there will be transfers of some functions from TOCs to GBR, but not sure who will be calling the shots.
The Bill doesn't go into organisation or functions (ie the proposed Regions), it's just the establishment/transfer of the key powers and flagship body.

There is detail on the devolved administrations but it only seems to be to allow their powers to be used by HMG/GBR if they request it, which seems unlikely.
There is much on the little-known Luxembourg Protocol and the Cape Town Convention which we intend to ratify, which aids cross-border procurement and operation I think.

Otherwise it's the same public/private setup we currently have, with a remit to maximise the private portion.
Given it won't be enacted before the election, I expect Labour will dump the whole thing, only to bring forward something very similar with a few key powers altered, and probably not early in their term as it's too bone-achingly complex to frame the legislation and get it through parliament.
They will probably want to rename the IRB/GBR, but I doubt it will be called the Integrated Rail Authority...

 

[Danfilm007]

GBR is the "brand name" for the IRB, and will have franchising/contracting powers devolved from DfT.
However, the SoS retains the power to set/agree service specifications and contract awards, so has power of veto.

I think the IRB is more than Network Rail, especially as they were at pains to say that at the launch of GBR.
I think there will be transfers of some functions from TOCs to GBR, but not sure who will be calling the shots.
The Bill doesn't go into organisation or functions (ie the proposed Regions), it's just the establishment/transfer of the key powers and flagship body.

There is detail on the devolved administrations but it only seems to be to allow their powers to be used by HMG/GBR if they request it, which seems unlikely.
There is much on the little-known Luxembourg Protocol and the Cape Town Convention which we intend to ratify, which aids cross-border procurement and operation I think.

Otherwise it's the same public/private setup we currently have, with a remit to maximise the private portion.
Given it won't be enacted before the election, I expect Labour will dump the whole thing, only to bring forward something very similar with a few key powers altered, and probably not early in their term as it's too bone-achingly complex to frame the legislation and get it through parliament.
They will probably want to rename the IRB/GBR, but I doubt it will be called the Integrated Rail Authority...

At least the industry has some certainty now draft legislation is tabled. Will take a year or two I expect for the required scrutiny and can be used as a stick to hit NR with for CP8 onwards

 

[mike57]

Surely the big question is will it survive the General Election. My money would be on no... Even if it was the best solution to the current problems an incoming government will want to be seen be doing something and will change it.

 

[Iskra]

I welcome this step, personally I think they should either do GBR properly or not bother at all, so it’s good to see some (minor) progress.

 

[ainsworth74]

I think the only interesting thing is the confirmation that the Government intends GBR (or the IRB in legalese) to be Network Rail just with added bits on top. That was perhaps always likely but I think this is the first time we've seen it in writing.

Other than that not much to write home about really, a few technical bits and bobs but that's it.

 

[Scanderina]

GBR is the "brand name" for the IRB, and will have franchising/contracting powers devolved from DfT.
However, the SoS retains the power to set/agree service specifications and contract awards, so has power of veto.

I think the IRB is more than Network Rail, especially as they were at pains to say that at the launch of GBR.
I think there will be transfers of some functions from TOCs to GBR, but not sure who will be calling the shots.
The Bill doesn't go into organisation or functions (ie the proposed Regions), it's just the establishment/transfer of the key powers and flagship body.

There is detail on the devolved administrations but it only seems to be to allow their powers to be used by HMG/GBR if they request it, which seems unlikely.
There is much on the little-known Luxembourg Protocol and the Cape Town Convention which we intend to ratify, which aids cross-border procurement and operation I think.

Otherwise it's the same public/private setup we currently have, with a remit to maximise the private portion.
Given it won't be enacted before the election, I expect Labour will dump the whole thing, only to bring forward something very similar with a few key powers altered, and probably not early in their term as it's too bone-achingly complex to frame the legislation and get it through parliament.
They will probably want to rename the IRB/GBR, but I doubt it will be called the Integrated Rail Authority...

I agree with you about likely Labour policy. They are unlikely to put rail reform anywhere near the top of the legislative agenda given the other issues facing the country, and a genuinely integrated rail body can't exist without legislation. It will be interesting to see what a Labour govt actually does with rail franchises/NRCs as they expire - if these are taken in-house to OLR then DfT will end up directly operating a very large portion of services and I'm not sure any government would want to be in this position. Maybe it'll be a bit clearer after the Bradshaw address this evening...

 

[HSTEd]

Apparently all that is needed to make an integrated railway is to call it an integrated railway.

It will, of course, not be integrated in any way.
The body is even commanded to continuously seek to further fragment the railway and regularly issue reports on how it has done so.

 

[winks]

Pretty sure Labour support the setup of GBR, so no I doubt Labour will bin this draft bill, maybe adapt it when they get into government but all politicians- whatever their colour - need to press on with this so passengers and probably more importantly the rail industry see the benefits of a clear pathway to reforming the railways for everyone.

 

[yorkie]

Ah. "simpler tickets" tickets.

I think most of us know what that means.

LNER have shown us exactly what it means: removal of Off Peak & Super Off Peak and single leg pricing where the singles are more than half the cost of a return, so anyone making a return journey is penalised.

"Simple" generally means more expensive in the rail industry.

 

[ComUtoR]

IRB ?

 

[ainsworth74]

IRB ?

Integrated Rail Body. The legislative name of Great British Railways.

 

[43066]

I think the only interesting thing is the confirmation that the Government intends GBR (or the IRB in legalese) to be Network Rail just with added bits on top. That was perhaps always likely but I think this is the first time we've seen it in writing.

Other than that not much to write home about really, a few technical bits and bobs but that's it.

The commitment to the private sector is presumably meant to be a trap for Labour’s (thus far uncertain) plans to renationalise, and to flush out what they’re actually prepared to commit to in their manifesto, the “pitch” being that the Tories are more pro business.

Colour me cynical, but I doubt there’s any rigorous analysis, or indeed any serious thought whatsoever behind these broad brush proposals, other than the obvious attempt at electioneering. Whether that strategy will actually benefit the Conservatives remains to be seen, because:

1. A lot of people, including many Conservative voters, seem to support renationalisation of the railway (I don’t agree with them, but the fact remains);

2. Vague future commitments regarding the esoteric subject of railway reform are unlikely to matter much electorally, in any case.

 

[Odyssey]

Waste of time and paper. Only a draft bill so won't be passed before General Election. Pointless even discussing it.

 

[Deepgreen]

"Leveraging private sector innovation"? The sort that has given us the 769s, the 701s, etc?! Please, no...

 

[Bletchleyite]

"Leveraging private sector innovation"? The sort that has given us the 769s, the 701s, etc?! Please, no...

Interestingly the main innovative TOC seems to be a state-owned one, i.e. LNER. Though we could do without one of its most recent ones.

 

[Irascible]

It's like people working for the state in any capacity are automatically lobotomised... we were world leaders in rail technology at one point via a completely state-owned body. Where's the best ROI for the whole nation? not something any of our politicians are looking at anymore.

 

[CTS1990]

As it is only being brought as a draft, I think it will be brought into the next Parliamentary session (post-GE effectively)

Within the document "DELEGATED POWERS MEMORANDUM: RAIL REFORM BILL" on Page 3, it says

"Secretary of State Transfer Scheme To empower the Secretary of State to make schemes for the transfer of property, rights and liabilities from and to certain specified persons, including an IRB, a proposed IRB and a former IRB (depending on the context). [This provision has not yet been developed but will be included should this draft Bill be formally introduced in a future parliamentary session."

I.e. when it is brought to a session formally.

Parliaments cannot bind their successors, so it almost certainly would be scrapped in its current form.

 

[Scanderina]

Parliaments cannot bind their successors, so it almost certainly would be scrapped in its current form.

True, but the draft bill is generic enough, and Labour's ultimate policy similar enough, to use almost all of the legal drafting for a future bill.

 

[LNW-GW Joint]

It's like people working for the state in any capacity are automatically lobotomised... we were world leaders in rail technology at one point via a completely state-owned body. Where's the best ROI for the whole nation? not something any of our politicians are looking at anymore.

If you mean under BR, I'd say we were no more than competent.
Virtually all the innovation post WW2 was elsewhere, which we are now importing.

 

[HSTEd]

If you mean under BR, I'd say we were no more than competent.
Virtually all the innovation post WW2 was elsewhere, which we are now importing.

In the technical sense the railway has been far less innovative in the post 1993 period than the pre 1993 period.
Indeed even the big economic change of recent decades, advanced purchase tickets, were pioneered in the dying days of the BR era.

(1993 to 2024 is 31 years. 31 years before 1993 is 1962)