A Bill to make provision about railways and railway services; and for connected purposes.
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Page 1
Part 1
The new regime for the railways
Chapter 1
Great British Railways
Designation and status
Source Bill 325 EN 2024-26
50. Clause 1 allows the Secretary of State to designate a body corporate as “Great British Railways (GBR) by regulations.
Source Bill 325 EN 2024-26
51. Clause 2 confirms that GBR is not a servant or agent of the Crown, and that its employees will not be civil servants. Further, clause 2 It also provides that the Secretary of State, the Scottish Ministers and the Welsh Ministers will not be considered shadow directors for the purposes of the Companies Acts.
Page 2
Functions
Source Bill 325 EN 2024-26
52. Clause 3 sets out the functions of GBR. The functions are a list of the activities that the Government expects GBR to undertake to fulfil its purpose.
53. The list of functions contained in the Bill is:
54. Subsection (2) clarifies that subsection (1)(a) (GBR's infrastructure management function) also enables GBR to take decisions on who can access the infrastructure. This clause and Chapter 1 of Part 3 set out GBR's new access management regime.
55. Subsection (3) provides the Secretary of State with the power to add further statutory functions by regulations. New functions can only be added if they are relevant to railways and rail related activities or railway services.
56. Subsection (4) defines the term “statutory functions” for GBR as those which it has above, plus any functions conferred on GBR by regulations or any other Act.
57. Subsection (5) allows GBR to authorise a subsidiary or a company jointly owned with Scottish Ministers, Welsh Ministers, or a transport authority, to deliver its functions for it or alongside it.
58. Subsection (6) confirms that GBR's statutory functions will not prevent GBR from being able to carry out other activities by virtue of being a company under applicable law, such as the Companies Act 2006. Where these activities do not relate to their statutory functions, such as functions relating to service facilities and property management, GBR will not be required to apply the general duties set out in the Bill.
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Source Bill 325 EN 2024-26
59. Clause 4 allows the Devolved Governments to make arrangements for GBR, a subsidiary of GBR, or a company jointly owned by the Devolved Government and GBR to carry out their statutory functions (i.e. the roles the Ministers each have relating to the railway or railway services). Where Devolved Governments choose to make such arrangements, GBR will be treated as if it was carrying out GBR functions (for example, the statutory duties in the Bill will apply). It requires the Ministers to publish the terms of any such arrangements. Subject to agreement, this provision could allow Devolved Governments to further integrate their services with GBR in the future.
Source Bill 325 EN 2024-26
60. Clause 5 subsection (1) enables co-operation between GBR and Passenger Transport Executives (PTEs), mayoral combined authorities (MCAs) and mayoral county combined authorities (MCCAs). This allows the parties to enter into arrangements regarding GBR's statutory railway functions, supporting government ambitions for a more locally focused railway through partnership working.
61. Subsection (2) confirms that these arrangements could allow PTEs, MCAs or MCCAS to fund GBR to undertake railway activities, such as delivering specific services that meet local needs.
62. Subsections (3) and (4) require information sharing between PTEs, MCAs or MCCAs, and GBR that is reasonably required for the purpose of exercising their railway functions in the local government body's area. Information sharing is important to enable local integration between transport modes, giving GBR and Mayors the ability to plan services and respond to changes.
Page 4
Source Bill 325 EN 2024-26
63. Clause 6 replicates clause 5 for Transport for London, which is governed by a different legislative framework to PTEs, MCAs and MCCAs. The Bill encourages the same cooperation by enabling GBR to enter into arrangements with Transport for London (TfL) under which TFL can fund GBR, and to require certain information to be shared between GBR and TfL.
Directions and guidance
Source Bill 325 EN 2024-26
64. Clause 7 gives the Secretary of State the power to issue and publish directions to GBR relating to its railway activities. The Secretary of State must obtain the Scottish or Welsh Ministers' consent before giving directions relating to GBR-run Scottish or Welsh services, except where the Secretary of State uses the direction power in relation to the access regime.
65. GBR will be required to comply with directions, which are mandatory and binding. Directions are intended to be used as a responsive tool for necessary course correction, rather than as a proactive tool to set requirements on GBR (i.e. they are a last resort). A set of non-legislative procedures and controls will ensure that the directions power is used proportionately and with justification.
Page 5
Source Bill 325 EN 2024-26
66. Clause 8 gives Scottish Ministers the power to issue and publish directions to GBR about how it is exercising its statutory functions in Scotland (in so far as they relate to Scottish railway activities). GBR will be required to comply with issued directions, which will be mandatory and binding. To prevent the directions from Scottish Ministers conflicting with those issued by the Secretary of State, the Secretary of State will have the power to revoke a direction of Scottish Ministers only where it is inconsistent with the Secretary of State's directions, where it will affect reserved matters or railways activities outside Scotland, or where it is outside the legislative competence or executive functions of Scottish Ministers. The Secretary of State must consult Scottish Ministers before revoking a direction. Any revocation of a direction must be published by the Secretary of State.
Page 6
Source Bill 325 EN 2024-26
67. Clause 9 enables the Secretary of State to issue and publish guidance to GBR. GBR must have regard to the guidance issued by the Secretary of State. Where the guidance relates to GBR provided Scottish or Welsh services (those services delegated or awarded to GBR), the Secretary of State must get the consent of Scottish or Welsh Ministers. This allows the Secretary of State to clarify policy intentions to GBR. The Government expects that in most cases requiring course correction, guidance would be used before directions.
Page 7
Source Bill 325 EN 2024-26
68. Clause 10 gives Scottish Ministers the equivalent power to issue and publish guidance to GBR in relation to Scottish railway activities.
Licensing
Source Bill 325 EN 2024-26
69. Clause 11 provides that GBR's licensing is set out in Schedule 1. Schedule 1 amends Part 1 of the Railways Act 1993 and sets out the detailed process by which the GBR licence will be issued and maintained (see Schedule 1 in these explanatory notes).
70. Both the Secretary of State and the ORR will retain the ability to grant licences to railway bodies other than GBR (for example to open access operators, freight operators, and other infrastructure managers such as the Core Valley Lines).
Financial arrangements etc
Source Bill 325 EN 2024-26
71. Clause 12 refers to Schedule 2, which creates the new Funding Period Review process and provides the Secretary of State and Scottish Ministers with a new power to fund GBR using this process.
72. The Funding Period Review process sets GBR's business plan for a 5-year period. It will include roles for the ORR, as the advisor to the Secretary of State and Scottish Ministers, GBR, as the operator of the railways, and the Secretary of State and Scottish Ministers as funders.
Source Bill 325 EN 2024-26
73. Clause 13 allows GBR to charge people to whom it is providing a service related to its functions (railway activities) as it sees fit. This will enable GBR to be able to charge for services it provides that are currently chargeable under the existing rail regime, such as the "back of house" services currently provided by the Rail Delivery Group, from which all passenger operators, including open access operators, benefit.
Source Bill 325 EN 2024-26
74. Clause 14 allows the ORR to require GBR to pay a levy to the ORR for performing its non-safety railway functions. This provides the ORR with a legally guaranteed funding source independent of the Secretary of State or Government. This provision aims to provide the ORR with a stable and predictable funding stream that will enable it to plan and carry out its activities effectively and efficiently. This replaces the current system under which the ORR requires Network Rail to pay a fee for it to perform its non-safety functions via a process set out in the Network Rail licence.
75. The ORR is an independent regulator, so decisions on its funding should be kept separate from organisations that have a vested interest in the ORR's decisions (which is why GBR, despite paying the levy, will not determine the amount). The amount is agreed between the ORR and the Treasury and then provided by GBR through this levy.
Page 8
Chapter 2
Exercise of railway functions
Strategies and target
Page 9
Duties
Page 10
Page 11
Page 12
Scotland and Wales
Page 13
Page 14
Part 2
Passenger and station services
Chapter 1
Passenger services
Designation and exemption of services
Page 15
Page 16
Provision of services
Page 17
Page 18
Fares
Page 19
Interpretation
Chapter 2
The Passengers’ Council
General
Page 20
Page 21
Investigations
Page 22
Page 23
Page 24
Complaints and dispute resolution
Standards and improvement plans
Page 25
Other functions
Page 26
Page 27
Miscellaneous
Page 28
Chapter 3
The London Transport Users’ Committee
Page 29
Page 30
Page 31
Page 32
Page 33
Part 3
Miscellaneous provisions
Chapter 1
Access to infrastructure and services
Access to and use of GBR infrastructure
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Access agreements and rights
Page 40
Page 41
Supplementary
Page 42
Chapter 2
Other provisions
The ORR
Page 43
Publication of information
Page 44
Page 45
Page 46
Page 47
Co-operation etc
Page 48
Page 49
Licensing etc of train drivers
Page 50
International interests in railway rolling stock
Page 51
Part 4
General
Page 52
Page 53
Page 54
Page 55
Schedules
Licensing of Great British Railways
Page 56
Page 57
Page 58
Page 59
Funding Great British Railways
Part 1
Funding by the Secretary of State
ORR to set timetable governing funding process
Page 60
Secretary of State’s statement of objectives
Page 61
Statement of funds available
Business plan and approval by the Secretary of State
Page 62
Keeping the approved business plan up to date
Page 63
Secretary of State’s power to provide financial assistance
Notification of financial assistance to be provided
Page 64
Part 2
Funding by the Scottish Ministers
ORR to set timetable: Scotland
Page 65
Scottish Ministers’ statement of objectives
Page 66
Statement of funds available: Scotland
Scottish business plan and approval by the Scottish Ministers
Page 67
Keeping the approved Scottish business plan up to date
Scottish Ministers’ power to provide financial assistance
Page 68
Notification of financial assistance to be provided
Page 69
Part 3
Subsidy Control
Subsidy control
Part 4
Interpretation
Interpretation
Page 70
Minor and consequential amendments
Public Records Act 1958
Insolvency Act 1986
Railways Act 1993
Page 71
Page 72
Page 73
Greater London Authority Act 1999
Page 74
Licensing Act 2003
Railways Act 2005
Railway (Licensing of Railway Undertakings) Regulations 2005
“Role of the Passengers’ Council
Page 75
Local Transport Act 2008
Page 76
Planning Act 2008
Equality Act 2010
Rail Passengers’ Rights and Obligations Regulations 2010
Railways (Access, Management and Licensing of Railway Undertakings) Regulations 2016
No amendments available.