DfT launches new consultation on legislation for rail reform

The Department for Transport has launched a public consultation (the “Consultation”) on changes to primary legislation that are required to deliver structural reform of the UK’s railways. The consultation closes to responses at 11:45pm on 4 August 2022.

Purpose

The Consultation has been launched following the publication of the Williams-Shapps Plan For Rail (the “Plan for Rail”) in May 2021, which set out the Government’s strategy for reform of the UK rail sector. Whilst aspects of the Plan for Rail do not require legislative change, new statutory provisions are needed to effect some of its proposals. For example, the new Transport Bill was outlined as part of the 2022 Queen’s Speech and is expected to formally establish Great British Railways (“GBR”) as an arms-length body of the DfT.  

The Consultation seeks input on the legislative changes envisaged by the Plan for Rail and requests evidence of the potential risks and implications of the proposals in order to inform DfT’s impact assessments.

Areas of focus

The Consultation focuses on new legislation anticipated in relation to three key areas:

• The establishment of GBR, which will replace Network Rail as the rail infrastructure operator for Great Britain. Such legislation is expected to outline GBR’s functions and duties, and also provide a framework for its interactions and relationships with key rail stakeholders. GBR’s functions are expected to include managing GBR infrastructure, granting access rights to operators and procuring and managing the delivery of passenger services.
• The creation of a new governance framework, with the aim of improving accountability and clarifying responsibilities across each of the key organisations in the rail sector, including the Secretary of State, GBR and the Office of Rail and Road (“ORR”).  It is proposed that this will include primary legislation setting out a statutory framework for governance; a new GBR licence issued by the Secretary of State (which can be enforced by ORR); the ability for the Secretary of State to issue directions and guidance to GBR; and requirements for GBR to have a five-yearly business plan.
• The reform of wider industry structures and processes, necessary for supporting the proposals in the Plan for Rail. This includes the creation of the ‘Passenger Champion’ role for Transport Focus, an independent watchdog safeguarding the interests of rail passengers, a new accessibility duty on GBR and a new approach to data transparency that will see an ‘open by default’ approach to data sharing.

The launch of this consultation marks the next step towards the implementation of rail reform agenda set out in the Plan for Rail and provides an opportunity for views to be shared on the more detailed proposals which are set to transform the rail sector.