Consultation launched on the future of Britain’s railways

The government's consultation launched today heralds a new Railways Bill, inviting responses from industry stakeholders on a number of key proposals, including: 

• The role of Great British Railways which will be created out of Network Rail's corporate structure and subject to a simplified licence drafted by the Secretary of State (SoS) and enforced by the ORR. The bill is expected to define GBR's statutory functions and duties and will accompany a long-term rail strategy from SoS to which GBR must have regard when carrying out its functions.
• The impact of reform on devolution.   At a national level, SoS will have a duty to consult the Welsh Ministers on its long-term strategy, whilst the Scottish Ministers will continue to set the strategy for the railway in Scotland. The bill will also dovetail with the government's devolution agenda, which contemplates that Mayoral Strategic Authorities will work with GBR to integrate the railways in their areas with other transport modes. 
• A new Passenger Standards Authority which will serve as a 'one-stop-shop' with responsibility for championing passenger interests. The PSA will have stronger powers to advocate for passenger experience and a key role monitoring passenger experience and resolving passenger complaints, championing improvements alongside ORR.
• Capacity allocation and access charging, with GBR making decisions on these matters in accordance with new regulations which will replace the AMRs. GBR will lead a comprehensive recalibration of the access charging regime with scope for GBR to offer targeted discounts (e.g. to encourage freight growth or low carbon operations).   
• The role of the ORR. The guidance and duties governing ORR will be reviewed to ensure alignment with the new model and its role in access decisions will change substantially, shifting in many respects to serve as an appellate body where claimants wish to challenge a decision made by GBR. ORR's role as safety regulator will not change. 
• A new funding process for GBR will be set out in legislation, replacing periodic reviews. The process will cover a 5-year period and ORR will retain a role in interrogating the settlement. 
• Fares reform, with legislative change empowering GBR to reform the fares landscape and take responsibility for setting fares and collecting revenue. GBR will retail fares online in competition with TPRs. 

We will publish a series of papers on the topics covered by the consultation in the coming weeks. If you would like to discuss the consultation, please contact me, Chris Simms or Sam Charkham.