Overview of costs in the English rail system

Public Accounts Committee Closed Inquiry
Opened: 26 Apr 2021 Closed: 16 Nov 2021 Parliament page
The rail franchise model has high fixed costs and low profit margins. The Department for Transport’s (DfT) net income from letting franchises fell significantly from 2016-17, becoming a net government subsidy in 2019-20. As passenger numbers dropped in the COVID-19 pandemic, rail industry income fell dramatically. It is unclear how … Read more
7 Recommendations
19 Conclusions
1 Report
1 Oral session
1 Event
Oral evidence sessions 1 session
Overview of costs in the English rail system
Andrew Haines · Network Rail Bernadette Kelly CB · Department for Transport Conrad Bailey · Department for Transport John Larkinson · Office of Rail and Road
Recommendations & Conclusions
4 results
23 Conclusion Deferred
Tenth Report - Overview of the Eng…
The Office of Rail and Road told us that in Control Period 5 (2014–15 to...
The Office of Rail and Road told us that in Control Period 5 (2014–15 to 2018–19), Network Rail became less efficient and failed to meet efficiency targets.58 Indeed, in contrast to assumptions made by the Office of Rail and Road … Read more
Government Response
Network Rail will provide a detailed response by December 2021, outlining how it will achieve the £4 billion efficiency target in Control Period 6, including improvements in approach, an efficiency framework, and specific targets for remaining years.
HM Treasury
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24 Conclusion Deferred
Tenth Report - Overview of the Eng…
In the first year of Control Period 6 (2019–20), Network Rail exceeded its planned efficiency...
In the first year of Control Period 6 (2019–20), Network Rail exceeded its planned efficiency savings; achieving £385 million compared to £316 million expected.61 The Office of Rail and Road told us that Network Rail has improved its efficiency through … Read more
Government Response
Network Rail will submit a detailed response to the Committee by December 2021, outlining its plan to achieve the efficiency target in Control Period 6, including improvements in approach, an efficiency framework, and specific targets.
HM Treasury
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25 Conclusion Deferred
Tenth Report - Overview of the Eng…
But Network Rail recognised that there “is still a mountain to climb” to achieve the...
But Network Rail recognised that there “is still a mountain to climb” to achieve the full efficiency improvements it has committed to, and that it will need to continue to increase savings.63 Network Rail estimated that 60% of remaining planned … Read more
Government Response
Network Rail will write to the Committee by December 2021, committing to delivering efficiency improvements in Control Period 6 and detailing how targets will be met, including improvements in approach, an efficiency framework, and specific targets.
HM Treasury
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26 Conclusion Deferred
Tenth Report - Overview of the Eng…
In 2020, the Office of Rail and Road reported inherent uncertainty in the value of...
In 2020, the Office of Rail and Road reported inherent uncertainty in the value of some of the efficiency savings made by Network Rail in 2019–20.69 The Office of Rail and Road told us that it has now agreed a … Read more
Government Response
Network Rail will submit a detailed response by December 2021, outlining how it will achieve its efficiency target for Control Period 6, including improved approaches, an efficiency framework, and details on targets and the impact of COVID-19.
HM Treasury
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Government Response AI assessment · 25 of 7 classified

Total 7 recs + 19 conclusions