UK Inquiry Tracker

Rail reform: The rail transformation programme

Public Accounts Committee Closed Inquiry

Opened: 22 Mar 2024 Closed: 29 May 2024 Parliament page

The Department for Transport (DfT) set out its plan to transform the way the rail system works in May 2021, in response to significant disruption to passengers in May 2018 following a failed introduction of a new timetable. The creation of Great British Railways (GBR) was proposed, a new organisation … Read more The Department for Transport (DfT) set out its plan to transform the way the rail system works in May 2021, in response to significant disruption to passengers in May 2018 following a failed introduction of a new timetable. The creation of Great British Railways (GBR) was proposed, a new organisation with responsibility for the whole rail system, by early 2024. Legislation to enable the creation of GBR was not brought during 2022, and DfT revised its approach to delivering rail reform in 2023. The National Audit Office (NAO) published its report looking at whether DfT had set up its rail transformation programme to deliver value for money in March 2024. This found that the rail sector’s performance, both for passengers and the taxpayer, is not good enough and has not been for some time. The report further found that government had spent £3.1billion on subsidies for passenger services in 2022-23, a level considered unsustainable by DfT. The Committee’s overview of the English rail system report in 2021 found that the rail system has become increasingly costly for the taxpayer. In 2019-20, the net cost of the system to the taxpayer was £5.1billion. This represented a 99.7% increase in real terms from 2015-16 to 2019-20. The report called for radical, effective reform in the rail system, and for aspirations and intentions to be turned into concrete actions that deliver meaningful change. Based on the NAO report, the Committee will hear from senior officials at DfT, Network Rail and from the GBR Transition Team, on subjects including: Progress against DfT’s plans for reform; Performance; Levels of spending on subsidisation of passenger rail services. If you have evidence on these issues, please submit it here by 23:59 on 12 April 2024. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. This inquiry was closed due to the 2024 General Election. Show less

9 Recommendations

15 Conclusions

1 Report

1 Oral session

3 Letters

1 Event

Activity timeline 7 events

11 Jul
2025

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Thirty-eighth report from Session 2023-24

27 May
2024

Report published

Thirty-Eighth Report - Rail reform: The rail transformation programme

22 May
2024

Correspondence

Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department for Transport, re Rail reform: The rail transformation progr…

14 May
2024

Correspondence

Correspondence from Dame Bernadette Kelly, Permanent Secretary, Department for Transport, re Follow-up to the session of Monday 29 - Rail r…

14 May
2024

Correspondence

Correspondence from Dame Bernadette Kelly, Permanent Secretary, Department for Transport, re Rail reform the rail transformation program, d…

29 Apr
2024

Oral evidence

Rail reform: the rail transformation programme

29 Apr
2024

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Rail reform: the rail transformation programme

Oral evidence sessions 1 session

29 Apr 2024

View on parliament.uk

Rail reform: the rail transformation programme

Andrew Haines · Network Rail Anit Chandarana · Department for Transport Conrad Bailey · Department for Transport Dame Bernadette Kelly DCB · Department for Transport

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Thirty-Eighth Report - Rail reform: The rail transformation prog…	HC 652	27 May 2024	24	Responded

Recommendations & Conclusions

8 results

5 Recommendation Acknowledged

Thirty-Eighth Report - Rail reform…

Urgently resolve fundamental disagreements with stakeholders on Great British Railways' role and commercial model.

Six years since the Department started work on rail reform, it has failed to resolve fundamental disagreements and clarify key aspects of reform. The Department acknowledges that, while its white paper set the broad direction and detail for some areas … Read more

Government Response

The government agrees to resolve disagreements regarding Great British Railways' role, function, and oversight to ensure financial sustainability, stating that further information on legislative plans will be provided as soon as practical.

HM Treasury

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6 Recommendation Acknowledged

Thirty-Eighth Report - Rail reform…

Meaningfully engage with the rail workforce to ensure successful implementation of sector reforms.

The Department has failed to engage with the workforce to successfully deliver its reform ambitions. Good policymaking relies on effective stakeholder engagement. The Williams Rail Review involved extensive consultation with trade unions and workers across the railway to understand their … Read more

Government Response

The government agrees to meaningfully engage with the workforce, citing a recent pay proposal to the ASLEF trade union, and reiterates its belief that partnership with workforce representatives is essential for reform.

HM Treasury

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9 Conclusion Acknowledged

Thirty-Eighth Report - Rail reform…

Delays to rail reform have resulted in unsustainable subsidy levels and increased taxpayer costs.

Delays to reform have added pressure to the Department’s finances and higher costs to the taxpayer for longer. The Department’s costs now exceed the revenue it receives and at a level that the Department views as unsustainable – the Department … Read more

Government Response

The government agrees the level of funding and subsidy for the railway is not sustainable and says it needs to increase revenues and reduce costs. They are committed to delivering a unified and simplified governance structure for the railways, alongside passenger train services under public ownership, with the objective of providing improved services for passengers and better value for money for taxpayers.

HM Treasury

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10 Conclusion Acknowledged

Thirty-Eighth Report - Rail reform…

Pandemic exposed rail cost challenges and created conflicting priorities for financial framework.

The Department told us that the pandemic presented a fundamental challenge to sustainably funding the railways and that the financial pressures have driven a stronger focus to look at the whole system and improve performance, both financially and for passengers.21 … Read more

Government Response

The government agrees with the Committee’s recommendation. They are committed to delivering a unified and simplified governance structure for the railways, alongside passenger train services under public ownership, with the objective of providing improved services for passengers and better value for money for taxpayers.

HM Treasury

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20 Conclusion Acknowledged

Thirty-Eighth Report - Rail reform…

Lack of consensus exists regarding GBR's 'guiding mind' role and central versus devolved authority.

We asked the Department for its views on the current commentary around GBR and the balance between it acting as a guiding or directing mind. The Department said it is important to find the right balance between the guiding mind … Read more

Government Response

The government states its ambition is to set the long-term strategy and priorities for the railway, with Great British Railways (GBR) acting as a “directing mind” focused on improving the rail network and the passenger experience.

HM Treasury

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21 Conclusion Acknowledged

Thirty-Eighth Report - Rail reform…

Rail Transformation Board's governance was confused, with unclear accountabilities and lacking stakeholder agreement.

Reviews by the IPA and the Department in early 2023 found that the Rail Transformation Board’s governance was confused, accountabilities unclear, and there was not agreement across stakeholders on the scope and delivery approach of the Programme. The Department recognises … Read more

Government Response

The department is preparing for the mobilisation of shadow GBR which will facilitate closer working between the senior leaders of Rail Services Group (RSG) in Department for Transport, Department for Transport Operator of Last Resort Holdings Limited (DOHL) and Network Rail (NR) to drive improvements. The IPA will provide assurance of the rail sector transformation programme delivery plan.

HM Treasury

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22 Conclusion Acknowledged

Thirty-Eighth Report - Rail reform…

Rail reform savings largely met, but workforce reforms proved challenging to deliver.

The Department agreed with HM Treasury that it would deliver £2.6 billion in savings from rail reform by 2024–25, with most savings expected to come from workforce reform plans including modernising ways of working within train stations, improving control and … Read more

Government Response

The government is resetting the relationship with the trade unions as part of its overall approach to reforming the railways and has recently made a proposal to the ASLEF trade union to settle the existing national pay dispute.

HM Treasury

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24 Conclusion Acknowledged

Thirty-Eighth Report - Rail reform…

Network Rail achieved significant workforce savings through constructive trade union engagement.

Network Rail told us about its good, constructive relationships with trade unions which have allowed it to achieve workforce efficiency and productivity savings of around £775 million.53 They provided examples of headcount reductions from losing around 2,500 managers, work reductions … Read more

Government Response

The Committee notes Network Rail's good relationship with unions and associated savings.

HM Treasury

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Government Response AI assessment · 21 of 9 classified

Accepted 11

Acknowledged 8

Not Addressed 2

Total 9 recs + 15 conclusions

Correspondence 3 letters

22 May 2024 Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department for Transport, re Rail reform: The rail transformation programme - Oral evidence, dated 7 May 2024

Parliament page

14 May 2024 Correspondence from Dame Bernadette Kelly, Permanent Secretary, Department for Transport, re Follow-up to the session of Monday 29 - Rail reform: the rail transformation programme, dated 7 May 2024

Parliament page

14 May 2024 Correspondence from Dame Bernadette Kelly, Permanent Secretary, Department for Transport, re Rail reform the rail transformation program, dated 7 May 2024

Parliament page