Rail Reform: The Government’s Long-Term Rail Strategy

The Government’s rail reform programme represents the most significant structural change to the rail sector in a generation. A central element of this programme is the Long-Term Rail Strategy (the LTRS), which is intended to set the strategic direction for the railway over a 30-year period. On 16 September 2026, the Department for Transport published a briefing paper for the House of Lords regarding the LTRS, providing a working overview of its proposed content.

Legislative Foundation: The Railways Bill 

Section 15 of the Railways Bill, which is currently before Parliament, imposes a duty on the Secretary of State to prepare and publish the LTRS for the development and use of the railway network in Great Britain. It is expected that the final LTRS will establish the strategic objectives for the railway over a 30-year period.

In preparing, revising or replacing the LTRS, the Secretary of State must consult the Welsh Ministers and the Passengers’ Council. This consultation requirement is designed to embed both devolved and passenger perspectives, ensuring a collaborative strategic process. 

There has been discussion regarding the tension between maintaining the long-term continuity of the LTRS and preserving the Government’s ability to retain a degree of flexibility. The Transport Committee raised concerns in its report on the Railways Bill that the LTRS should not be so easily amendable that it becomes a series of short-term strategies and accordingly recommended that the Railways Bill be amended to require the LTRS be laid before Parliament following substantive revisions by the Secretary of State.

The Government acknowledged the risk in its response to the Transport Committee and the need for continuity for the sector to give confidence to the wider supply chain. However, it considers that the LTRS will provide a significant degree of long-term certainty given that it will cover a 30 year period and that no further legislative amendments are required given that the Railways Bill already requires any revised or replacement strategy to be published and for consultation with the Welsh Ministers and Passengers’ Council to be undertaken. The Government does offer to commit to laying a Written Ministerial Statement as well as a copy of the LTRS in the library of both Houses to ensure parliamentarians can scrutinise the strategy and any revisions made to it.

Impact of the LTRS

Under section 16(2) of the Railways Bill, both Great British Railways (GBR) and the Office of Rail and Road (ORR) must “have regard to” the LTRS when exercising their functions. As such, the two bodies must consider the strategy as part of their decision-making processes but it does not compel strict compliance with, or implementation of, its content. 

Under the Railways Bill, GBR and the ORR must also have regard to the Wales Transport Strategy and the strategy published by the Scottish Ministers under existing legislation.

The strategic objectives

The briefing paper highlights that the LTRS will be framed by five long-term strategic objectives for the railway, developed following extensive stakeholder engagement. Each chapter of the LTRS will focus on one objective. The objectives are as follows:

1. catalysing long-term economic growth;
2. ensuring rail is financially sustainable, efficient and value for money;
3. reducing inequality and improving connectivity between communities; 
4. meeting the needs of future passengers and freight customers; and 
5. supporting Government’s sustainability objectives. 

The objectives are broad in scope, encompassing the key policy outcomes that the Government wants the railway to deliver. The LTRS will remain focussed on these outcomes, rather than setting a detailed plan or pipeline of projects. These remain matters for GBR to develop in response to the strategy.

The paper acknowledges that GBR will need to consider how it will deliver the objectives over multiple funding cycles and that difficult trade-offs and choices may need to be made, particularly in relation to achieving a financially sustainable railway.

Implications for private sector investment 

A clearly articulated long-term strategy has the potential to give private sector participants greater confidence to commit capital and pursue commercial opportunities within the sector. The extent to which the LTRS, once published, will provide that confidence remains to be seen.

For further analysis of the impact of rail reform for contractors and investors, see our article on private sector investment on the Rail Hub.

Conclusion

The final LTRS document is currently expected in the autumn of 2027. Operators, investors, and supply chain participants should monitor its development closely.

For further information on this topic or the impact of rail reform more generally, please contact Lydia Cullimore or another member of the Burges Salmon rail team.