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The Future of Rail

Practical guidance, insights and updates to help you put the pieces of rail reform together

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Introduction Upcoming timeline Previous developments Insights Our experts

Helping organisations across the rail sector understand the bigger picture as the future of rail takes shape, piece by piece.

The rail sector is entering a period of significant change. With the Railways Bill, the transition towards greater public ownership, and the creation of new industry structures set to reshape how the railway is governed, funded and delivered, organisations across the sector are seeking to understand what the future landscape will look like in practice.

While a number of important pieces are now emerging, the full picture is not yet complete. Key policy announcements, consultations and legislative developments have provided valuable insight into the direction of travel, but many questions remain unanswered. As further details become available, organisations will need to assess how the evolving framework could affect their businesses, operations and future opportunities.

This hub brings together practical guidance, legal updates and expert insight from Burges Salmon’s rail team to help businesses, public bodies, operators, suppliers, investors and industry stakeholders navigate a changing and, in some areas, still uncertain landscape.

Drawing on our deep experience across the rail sector, we explore the key legal and commercial issues arising from these changes, from regulation and governance to contracting, employment, pensions, disputes, projects and investment.

Whether you are responding to consultations, reviewing contractual arrangements, assessing the implications for future opportunities or planning for operational change, our aim is to provide clear, practical support as the remaining pieces of the puzzle fall into place and the future structure of Britain’s railways becomes clearer.

An introduction to rail reform

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An introduction to rail reform

Our view on the evolving rail sector

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Link to video

Future timeline

Autumn 2026: Policy

Draft GBR licence consultation

A consultation on GBR’s proposed licence.

It will outline the proposed conditions GBR must comply with and the enforcement role of the ORR.

13 December 2026: Operational

Great Western Railway to transfer to public ownership

Scheduled transfer of GWR services.

End of 2026 (expected): Legal

Railways Bill to receive Royal Assent

The bill is expected to complete its passage through the House of Lords and receive Royal Assent by the end of 2026.

Early 2027: Policy

ORR consultation on contractual transition for non-GBR facilities/ infrastructure managers

This consultation will seek views on model contracts and General Approvals for parties who grant access to non-GBR infrastructure or facilities. It will identify changes to the non-GBR contractual suite to reflect the new regulatory framework.

Spring 2027: Policy

ORR consultation on its policy regarding licence enforcement

This consultation will set out ORR’s proposed approach to licence enforcement (including both GBR and non-GBR licence holders), including how ORR will identify, investigate and potentially enforce licence non-compliance.

Spring 2027: Policy

ORR consultation on its approach to monitoring GBR

This consultation will set out ORR’s proposed approach to monitoring and reporting on GBR’s activities and delivery across its statutory functions and licence obligations.

Spring 2027: Policy

ORR consultation on its appeals procedure

This consultation will set out ORR’s proposed approach to carrying out its appeals function under the new access framework.

The consultation will set out the process that ORR will follow when considering appeals, including expectations for appellants, GBR and interested parties.

Spring 2027: Policy

Retail code of practice

ORR to publish the rules that GBR must follow to ensure a fair and open retail market. These will form part of GBR’s licence and be enforced by the ORR.

Spring 2027: Policy

Charging and performance framework consultation

A consultation on GBR’s proposed policies regarding charging and performance of operators on its network.

It will cover track access charges as well as performance schemes for planned and unplanned disruption.

Spring 2027: Policy

Access and Use Policy (AUP)

GBR to publish the final AUP governing how GBR will manage access to the network.

Autumn 2027: Policy

Long-term rail strategy

SoS to publish its long-term strategy, setting the objectives guiding GBR over a 30-year period.

By end of 2027 (expected): Operational

Completion of public ownership transfers

All passenger services operated under contracts with the DfT are expected to have transferred to public ownership. This includes East Midlands Rail, Avanti West Coast and Cross Country which, at the time of publication) do not have confirmed dates for transfer.

c. 12 months after Royal Assent: Operational

Completion of public ownership transfers

Great British Railways is expected to become operational approximately 12 months after the Railways Bill receives Royal Assent, at which point it will assume full responsibility as the integrated “directing mind” for the railway.

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Previous developments

Date	Milestone	Category	Details
February	Transport Select Committee published its report on the Railways Bill	Legal	Presents the Transport Committee’s scrutiny of the Railways Bill and recommendations to strengthen its governance, accountability and regulatory framework.
April	Government publishes its response to Railways Bill	Legal	Sets out the Government’s response to the Transport Committee’s recommendations, clarifying its intended approach to GBR’s governance, accountability and implementation.
1 May	GBR licence policy document published by DfT	Policy	This sets out the design of the new accountability framework for GBR including the new integrated GBR licence, ahead of public consultation on the licence later this year.
11 June	Railways Bill passes the House of Commons	Legal	The bill completed its Commons passage and was sent to the House of Lords (as HL Bill 25).
June	Heads of Terms for the MoU between the Passengers’ Council and ORR published	Policy	The Heads of Terms summarise the expected content of the Memorandum of Understanding between the Passengers’ Council and the ORR. The final version will be formally published later this year and will set out how the ORR and Passengers’ Council will work together, and the process they will follow when concerns are escalated for enforcement action.
7 July	Railways Bill — Lords Second Reading	Legal	The House of Lords debated the general principles of the Railways Bill at Second Reading. Following Second Reading, the bill was committed to Grand Committee.
July	Policy consultation on changes to non-GBR licences	Policy	Discussion document published by ORR setting out its emerging views on changes to the licences of non-GBR operators that may be necessary or desirable. The document seeks early stakeholder views to inform further policy development.
September	2040 rail freight growth targets	Policy	Announcement of more detailed rail freight growth targets for 2040, as a milestone towards the overall target of at least 75% rail freight growth by 2050.
8 September – 26 October	Railways Bill — Lords Committee Stage (Grand Committee)	Legal	Seven sittings of Grand Committee have been scheduled for detailed line-by-line scrutiny of the bill (8, 10, 16 September; 12, 19, 21, 26 October 2026).
9 September	Consultation on GBR’s draft Access and Use Policy and associated frameworks	Policy	Network Rail launches its consultation on the AUP and related contractual framework, including model track, depot and station access agreements. The consultation closes on 2 December 2026.
September	Long-term rail strategy discussion paper	Policy	DfT publishes a policy paper on its plans for the long-term strategy (LTS), including its anticipated strategic objectives. The LTS will provide the overarching direction for the railways over a 30 year period and be set by the Secretary of State and delivered by GBR.
28 September	Department for Transport (“DfT”) and DfT Operator Limited published the Rolling Stock and Infrastructure Strategy	Policy	The strategy outlines how Great British Railways (“GBR”) propose to coordinate long-term decisions regarding rolling stock and rail infrastructure following the Government’s wider rail reform programme.
9 October	Office of Rail and Road publishes Consultation on the Retail Code of Practice	Policy	ORR consults on rules establishing a fair, transparent and competitive retail market under Great British Railways, covering governance and data. ORR welcomes responses to this consultation until 11 December 2026.

Date	Milestone	Category	Details
Febraury	Consultation on the Railways Bill launched	Policy	The government consulted on proposals to set up GBR as a new arm’s-length body responsible for rail services and infrastructure.
25 May	The first Train Operating Company (South Western Railway) transfers to public ownership	Operational	The first operator to transfer under the new legislation, marking the beginning of the nationalisation programme.
5 November	Railways Bill introduced in Parliament	Legal	The comprehensive legislation to establish Great British Railways as a statutory body with responsibility for track and train, access and charging decisions and long-term planning.
December	GBR AUP Discussion Paper published	Policy	Network Rail published a discussion paper on GBR’s Access and Use Policy, outlining its proposals on the direction of future access and use decisions under the new industry structure and inviting comments on the proposals from industry stakeholders.
December	Discussion Document re developing ORR’s process for GBR appeals published	Policy	ORR published a discussion document setting out how the ORR intends to approach developing a GBR appeals process, seeking feedback to inform its draft appeals policy.

Date	Milestone	Category	Details
February	Draft Rail Reform Bill published	Legal	The Conservative government published a draft bill for pre-legislative scrutiny, proposing amendments to the Railways Act 1993, the Greater London Authority Act 1999, and other legislation to establish GBR.
28 November	Passenger Railway Services (Public Ownership) Act 2024 receives Royal Assent	Legal	The Act amended the Railways Act 1993 to prohibit new franchise awards and extensions, making public sector operations the default.
4 December	Public ownership transition program launched	Operational	The government announced the first services to transfer into public ownership. Services would move to a new publicly owned operating company, a subsidiary of DfT Operator Limited (DFTO).

Date	Milestone	Category	Details
September 2018	Williams Rail Review launched	Policy	Following widespread service disruptions (particularly the May 2018 timetable crisis), the government commissioned Keith Williams to conduct a root-and-branch review of the structure of the whole rail industry.
March 2020	Emergency Measures Agreements (EMAs)	Operational	In response to the COVID-19 pandemic’s collapse of passenger revenue, the government introduced Emergency Measures Agreements, effectively taking on revenue and cost risk from private operators and suspending normal franchise mechanisms.
September 2020	End of rail franchising announced	Policy	The government formally ended the franchise system after 24 years, replacing it initially with Emergency Recovery Measures Agreements (ERMAs) and subsequently with National Rail Contracts (NRCs), which were management-style contracts with limited private risk.
20 May 2021	Williams-Shapps Plan for Rail published	Policy	The landmark white paper proposed the creation of Great British Railways (GBR) as a new public body to integrate track and train. GBR would own the infrastructure, receive revenue, set fares and timetables, and let concession-style Passenger Service Contracts to private operators.
December 2022	National Rail Contracts replace franchise agreements	Operational	The remaining private operators transitioned from pandemic-era agreements to National Rail Contracts, a new contract model giving the DfT greater control over services while operators earned management fees.
Febraury 2024	Draft Rail Reform Bill published	Legal	The Conservative government published a draft bill for pre-legislative scrutiny, proposing amendments to the Railways Act 1993, the Greater London Authority Act 1999, and other legislation to establish GBR.