Rail Services: Open Access Operators

Gregory Stafford Excerpts

Thursday 6th February 2025 Westminster Hall

[Gregory Stafford (Farnham and Bordon) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Lewell-Buck, especially because it is my first speech from the Front Bench. I am told that you never forget your first time, but I do hope the Minister is gentle on me.

I thank my hon. Friend the Member for Brigg and Immingham (Martin Vickers) for securing this debate. He has been a strong advocate for open access rail services, and I welcome his contributions today. He rightly highlights the importance of these services to regions across the country. I am told that in 2013 he was among a group of MPs who wrote to the Office of Rail and Road in support of expanding long-distance open access services. While I think we would all agree that more progress would have been welcome, it remains vital that Members like my hon. Friend across the House ensure that regulators are doing everything they can to encourage competition.

This year marks the 25th anniversary of open access intercity train competition on the east coast main line, connecting London, the north-east and Scotland. The benefits are clear: lower fares, more choices, more routes, increased innovation and higher passenger satisfaction. This proven model should be used as a blueprint in shaping Great British Railways and the upcoming railways Bill. It remains frustrating that, despite its success, the model has not been replicated on other intercity main lines.

As a Conservative, I value competition. When opportunities arise to introduce it into our transportation systems, we should take them. The evidence is clear: open access services create new travel opportunities, especially for underserved or more rural communities, such as my Farnham and Bordon constituency. These services support economic growth and encourage a shift to greener transport. That is why it is encouraging that new services were approved in 2024, including two entirely new routes on the west coast main line and the great western main line, along with eight approvals for smaller-scale improvements.

Recently, the Prime Minister and the Transport Secretary visited the Hitachi factory in Newton Aycliffe to celebrate FirstGroup’s £500 million order for 14 new Class 80X units, which will be a key part of their open access plans. Those units will operate on Lumo’s east coast main line services, as passionately described by the hon. Member for Newcastle upon Tyne East and Wallsend (Mary Glindon), and on the newly secured London Paddington to Carmarthen service, launching in December 2027. Crucially, the expansion of services means more British train orders, boosting domestic industry. I urge the Minister and his Department to continue supporting further applications to sustain that investment.

A regulatory framework that supports the sector’s investing in UK-built rolling stock and improving passenger services ultimately benefits both fare-paying passengers and the wider economy, as my hon. Friend the Member for Keighley and Ilkley (Robbie Moore) mentioned. The Government must ensure that they facilitate services that serve the public interest. Like my right hon. Friend the Member for Gainsborough (Sir Edward Leigh), I will also focus on a couple of local issues—he has said that he bores on, but if anyone has the right to bore on, it is the Father of the House, and long may he continue to do so.

Southwestern Railway has been chosen as the first service to be nationalised this year, but the Government remain unclear about the impact that will have on open access services. My constituents in Farnham and Bordon rely on regular and reliable trains from Farnham, Liphook, and Haslemere stations to commute into London. As it stands, those services are frequently disrupted by strike action from the Labour party’s largest donors. While the fate of Southwestern Railway may be sealed, the potential Guildford to Heathrow terminal five connection, which would greatly benefit my constituents travelling to the airport, is under threat if open access services are restricted. I hope the Minister can reassure my constituents that nationalisation will not stifle open access operators, which play an important part in filling gaps in the delivery of rail services.

As my hon. Friend the Member for Brigg and Immingham said, the Minister’s own Wakefield constituency benefits from popular open access intercity services, which have led to lower fares, greater choice, and better connectivity with London and the wider region. Furthermore, the open access operator at Wakefield has invested in station facilities. Despite that, the Government’s overall approach to rail has marched towards centralisation and nationalisation. While the merits of that direction are a debate for another time, it is worth noting that the Government, both before and after the election, have recognised the value of open access services. The key question is whether that recognition will translate into tangible support for expansion.

In September 2024, the former Transport Secretary, the right hon. Member for Sheffield Heeley (Louise Haigh) clearly stated in a written statement to the House:

“Open access operators have a proven track record in driving competition and better passenger outcomes, and where there is a case that open access operators can add value and capacity to the network, they will be able to.”

Does that position still hold with the new Secretary of State and her Ministers? A clear reaffirmation would provide much-needed confidence to the businesses ready to invest.

Open access operators not only add financial value but improve accessibility and convenience. In my own constituency, there is a strong case for reopening the Bordon line and the station, or at least for a rail-bus link from Bordon to Liphook to enhance connectivity and increase train usage. We should remain open to innovative transport solutions that improve infrastructure just as we do with open access. However, despite positive statements in the past, the Secretary of State’s letter to the ORR in January raised concerns, signalling a shift in tone from the earlier commitments. Furthermore, some troubling rhetoric has emerged.

Last year, a rail union leader described open access firms as parasitical during testimony to the Transport Committee. The RMT has also explicitly campaigned for Great British Railways to absorb open access operations and rail freight. The hon. Member for Scarborough and Whitby (Alison Hume), in her usual BAFTA-nominated style, referred to the spirit of the 17th century, but the danger with these unions is that they will take us back to the 1970s, and I am sure none of us wants to go there. Given the Government’s previous concessions to the rail unions, it is fair to question whether open access services could be curtailed in future negotiations. Can the Minister assure us that these services will not be sacrificed in such discussions?

Another concern is that while the UK seems to be moving towards greater state control, as has been mentioned, Europe is heading in the opposite direction, embracing private sector involvement in rail. A European Commission report published in September last year highlighted that open access competition led to a 31% reduction in ticket prices in Italy and a 41% increase in service frequency in Austria. The report’s conclusion was clear that open access competition,

“across a variety of different cases, both decreased ticket prices and improved the quality of the service as compared to the situation prior to the start of competition.”

The Government have now raised concerns about the impact of open access on overall rail revenue, as we heard mention of today. However, the ORR has conducted thorough cost-benefit analyses, including cost consultations, on the monetised impacts. If the new Secretary of State is questioning these findings, is it because the Government believe that the ORR has made errors in awarding the contracts, or is this part of a broader policy shift?

The future and independence of the regulator is critical. Under plans for Great British Railways, will the ORR retain its authority over open access applications? Any move to transfer these decisions to Great British Railways or to the Department would undermine transparency, accountability, and independence, and the Opposition would strongly oppose such a change. The Government’s position, I am afraid, remains unclear. Are they a genuine supporter of open access operators, or do they merely tolerate them as a costly inconvenience? We need clarity.

With the ORR currently considering 13 applications, can the Minister confirm whether new guidance is forthcoming? More importantly, can he reassure the sector that any new guidance will not obstruct the growth of successful rail businesses that offer more choice and lower fares for passengers? The Government face a choice: embrace the benefits of competition and build on a proven success story, or retreat into centralisation at the expense of passengers. I urge Ministers to choose the former.