9 Accepted

We have previously reported on the problems inherent in the rail system which have led...

Conclusion
We have previously reported on the problems inherent in the rail system which have led to poor performance and reliability of the network. Even before the pandemic, we and the Transport Committee had reported on the Department’s franchising model and concluded that it was a broken model.21 We reported in 2018 that the Department’s management of two important franchises (the Thameslink, Southern and Great Northern and East Coast franchises) had been inadequate and were likely indicative of wider weaknesses in the Department’s ability to manage franchise contracts.22
Government Response Summary
The government acknowledges the Committee's conclusions regarding past rail system problems and the broken franchising model. It has set up a comprehensive Rail Transformation Programme, aiming to deliver a new rail system with Great British Railways fully operational from 2024 onwards, through three distinct phases of design, capability building, and transition.
Government Response
Accepted
HM Government Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2021 2.2 The government will write to the Committee in December 2021. The government has set up a Rail Transformation Programme within the department and rail industry to establish a common understanding of the vision, set out the phases of delivery and work collectively with the sector to design the transformation and implement this major programme. The Chief Executive of Network Rail, a respected leader in the sector, has been asked to develop plans for establishing interim arrangements, drawing from across the industry and beyond, including the Rail Delivery Group, government and Network Rail. There are three distinct phases to the programme with indicative deliverables: • Phase 1 initiates the programme and supports sector mobilisation. It will comprise the design of the end state Sector Target Operating Model (STOM), which will provide organisations with the necessary parameters and guidance to undertake the organisational design required to deliver the commitments in the Williams-Shapps Plan for Rail. • Phase 2 will focus on building operational capability and starting the realisation of programme benefits, whilst undertaking collaborative delivery of the sector target operating model. Legislation required for structural reform (2022-23) will be progressed, and the 30-year strategy, national accessibility strategy and environmental plan published. Test and learn fares initiatives and the Delay Repay 15 rollout will be launched. • Phase 3 is the transition to business as usual operations, with a policy framework in place to execute strategic plans, a collectively transformed sector and Great British Railways fully operational from 2024 onwards. Statutory accountabilities can be transferred when legislation comes into force and end state capability will be in place. New local and regional partnerships, a long-term investment programme for accessibility and full multi-modal ticketing will be in place.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.1 yrs
Report published 07 Jul 2021