Investment, delivery models and procurement: Long Term Pipelines and funding certainty – what the Railways Bill means for contractors and investors

The Railways Bill places an obligation on the Secretary of State to prepare and publish a document that sets out long term strategy for: 

1. the development and use of the railway network in Great Britain; and

2. the railway services that the Secretary of State wishes to see provided in Great Britain.

Together, these requirements form the proposed long-term rail strategy, referred to in this article as the Rail Strategy. 

The Rail Strategy is yet to be published, but the long-term rail strategy discussion paper is anticipated to be published this year and will set out its proposed scope and structure with the final Rail Strategy being published in 2027. In advance of those publications, the Railways Bill, along with accompanying factsheets and Transport Committee reports, provide an indication of the strategy’s likely aims and what the industry may expect from the proposed reforms.

The Rail Strategy is intended to set the Government’s long-term direction over a 30-year period using the 5 strategic objectives of: 

• meeting customers’ needs;

  • financial sustainability;

    • long-term economic growth;

    • reducing regional and national inequality; and

    • environmental sustainability.

Great British Railways (GBR) will be required to demonstrate how its work supports these strategic objectives when exercising its functions with the aim of providing greater strategic alignment when implementing longer-term choices that benefit the whole rail sector. This may give the wider market greater visibility of priorities likely to inform future investment decisions.

The introduction of the Railways Bill and the Rail Strategy should provide greater pipeline visibility, but industry certainty will depend on firm funding commitments. Commercial confidence may be supported by the proposed 5-yearly funding periods required under the Railways Bill and the Government establishing strategic pipelines through:

1. updates to key documents such as the National Infrastructure Pipeline, Rail Network Enhancements Pipeline; and 

2. the Rolling Stock and Infrastructure Strategy, which was published in late September 2026. 

For example, if discontinuous electrification is established as a means for improving environmental sustainability and meeting customers’ needs in a more efficient way, and that objective is subsequently translated into a funded programme. In turn, contractors may be better placed to invest in skills, equipment and the capacity required to deliver the programmes to meet the strategic aims of the Rail Strategy. 

The Rail Strategy, once published, may indicate the sectors in which private capital could support delivery, but investable opportunities will depend on the Government’s assessment of whether private finance is appropriate and, if so, which financial model is most suitable (e.g. through Public-Private Partnership (PPP) or another form of private financing). 

We have seen the Government exploring private investment through PPP for the new HS2 Station at Euston, but the suitability of this type of funding will be dependent on the characteristic of asset and clear value for money/risk benefits that will need to be demonstrated to justify its use. 

As set out in the Rolling Stock and Infrastructure Strategy, it is likely that private financing will remain, a key feature of rolling stock investment (as evidenced from the delivery of Britain’s first mainline battery electric train fleet, on which we advised: Burges Salmon advises TransPennine Express on landmark £1bn battery-electric train project - Burges Salmon), the Rail Strategy should provide greater visibility of the Government’s long-term ambitions and future rail requirements, giving investors a clearer basis on which to assess potential opportunities to invest in the rail sector. 

The obligation to implement a long-term strategy under the new Railways Act will provide an important foundation for greater strategic visibility and should look to shape the direction of travel in the industry over the next 30 years. Whilst this is a welcome step certainty for supply chain and investors will need to be complemented with continued visibility of a pipeline of investable projects to enable the supply chain to build investment in the wider sector.