10
Accepted
We were interested to hear the Department’s views on the main issues caused by the...
Conclusion
We were interested to hear the Department’s views on the main issues caused by the rail system’s current structural organisation. The Department recognised that problems have emerged over a number of years, partly the result of poor alignment between Network Rail, responsible for rail infrastructure, and operators, responsible for delivering passenger services. The Department highlighted issues around missed opportunities to collaborate and a lack of strategic direction and accountability for the industry. It also told us that these issues have led to poor performance and reliability, insufficient capacity to meet demand and an increasingly expensive railway, all of which have consequences for taxpayers and fare payers.23 The Department also recognised that the COVID-19 pandemic has brought significant additional challenge for the rail sector. Passenger revenues, which according to a National Audit Office analysis provided 80% of rail system earned income in 2019–20, have dramatically reduced.24
Government Response Summary
The government agrees and has established a Rail Transformation Programme with three phases, including designing a Target Operating Model, progressing legislation for structural reform by 2022-23, and making Great British Railways fully operational from 2024.
Government Response
Accepted
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.
Source
Committee
Public Accounts Committee
Report
Tenth Report - Overview of the English rail system
07 Jul 2021
HC 170
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.1 yrs
Report published
07 Jul 2021