Rail reform: ORR consults on changes to non-GBR licences

In July 2026, the Office of Rail and Road (ORR) published its discussion document ‘Modifying non-GBR licences in the Context of Rail Reform’. The document seeks views on proposed modifications to licences held by non-GBR operators, as part of the wider effort to align the licensing framework with the Government’s rail reform programme. With the Railways Bill progressing through Parliament and significant structural changes on the horizon, the proposals are relevant to a broad range of industry stakeholders who operate railway assets.

Overview

The Government’s reform programme centres on establishing Great British Railways (GBR) as the single body responsible for managing the majority of rail infrastructure and operating passenger trains. The Railways Bill, which provides the legislative basis for these changes, is currently progressing through parliamentary scrutiny.

Under the proposed framework, GBR will operate under an integrated railway licence issued by the Secretary of State (SoS) and enforced by the ORR. The remaining other “non-GBR” operators (including freight and open access train operators, other infrastructure managers and other facility owners) will continue to hold separate “non-GBR” licences issued by the ORR.

As under the current regime, it will remain an offence to operate railway assets without the requisite licence or exemption. For both GBR and non‑GBR operators, licences will be a key mechanism through which the ORR implements regulatory requirements and enforces accountability. 

Key Changes

To ensure alignment with the reform programme, existing non-GBR licences may need to be modified. The ORR’s discussion document highlights the following areas of emerging thinking:

• Separate licences still required for non-GBR operators. Whilst the Government intends for GBR to operate under a single, integrated licence, non-GBR operators will continue to require separate licences for different categories of railway assets (trains, stations, depots, networks, etc.).

• Existing licence requirements maintained where they remain effective and relevant. Modifications to existing non-GBR licences will be limited to changes necessary for consistency with the new regulatory framework. Where specific operators hold licences with bespoke licence conditions, these can be preserved provided they remain relevant and compatible.

• Consistency between GBR and non-GBR licences. The ORR will seek consistency where it is proportionate to the purpose being achieved. However, some differences are expected given GBR’s unique role as the directing mind for the railway – for example, the GBR licence is likely to include conditions relating to asset stewardship, land disposal and the provision of network-wide industry systems and functions.

• Compliance with standards set by the Passengers’ Council. As highlighted in our article Rail reform: The Passengers’ Council – A new watchdog for rail passengers - Burges Salmon, the Passengers’ Council will become responsible for setting and monitoring minimum standards relating to passenger information, complaints handling, delay compensation and accessibility. These standards will apply to both GBR and non-GBR passenger operators. The ORR anticipates that existing non-GBR licences will need to be amended to ensure alignment.

• Participation in GBR network-wide systems. As part of rail reform, GBR is expected to take on the majority of the Rail Delivery Group’s functions, including the management of certain network-wide industry systems. Non-GBR licences may need to be modified to ensure continued sector-wide participation in these systems.

Next steps 

A consultation on the proposed GBR licence is expected in autumn 2026. Around the same time, the ORR expects to launch a formal consultation on modifications to non-GBR licences, informed by responses to this discussion paper.

The formal statutory process for modifying licence conditions will then take place once the Railways Bill has received Royal Assent. Section 76 of the Railways Bill sets out the changes to be made to the Railways Act 1993 regarding this process. Notably, a licence holder’s agreement is not required for modifications to take effect — the ORR need only consider any representations or objections made within the relevant period (being at least 28 days) before proceeding. Early engagement with the ORR as part of this consultation process is therefore important for licence holders wishing to ensure that their views are taken into account.

If you have any queries about this article, the consultation or rail reform more broadly, please contact Lydia Cullimore or another member of the Burges Salmon rail team.