Kieran Mullan

The full regulated Control Period 7 funding settlement, as outlined in the Delivery Plan, remains available to Network Rail. The phasing of spend is subject to annual update of the Delivery Plan for the 5 year period as led by Network Rail working in conjunction with the regulator and Government.

Network Rail’s year one projected spend profile for Control Period 7 can be found in Network Rail’s delivery plan for Control Period 7 which is published on its website. Please find below a link to the document:

https://www.networkrail.co.uk/wp-content/uploads/2024/03/Network-Rail-CP7-GB-Delivery-Plan.pdf.

Following discussions, on 29 August London North Eastern Railway (LNER) and ASLEF found a resolution to their long running local dispute at no extra cost to the taxpayer and preventing 22 days of industrial action whilst ensuring an improved service for passengers. LNER has agreed a new rest day working agreement with its drivers and has agreed to use driver managers in line with common industry practices.

The process of transitioning railway passenger services into public ownership should not impact investment projects. Existing projects can continue unless there is a good reason for review; with new projects being considered on their merits. The Department will work closely with private sector train operating companies and Network Rail during the transition process to understand the position of any investment programmes, and build these into transition planning if appropriate.

Railway passenger services currently operated by private sector companies under contract to the Secretary of State will transfer into DfT OLR Holdings Ltd (DOHL) when current contracts end, reach their contractual break point, or if they fail. DOHL is tasked with undertaking transfers efficiently and effectively, with no disruption to passengers and employees. It has managed four successful transfers in recent years and is scaling up to ensure the successful transfer of more services into public ownership.

We are committed to delivering benefits for both passengers and taxpayers, and there will remain a role for open access services where they provide improved connectivity and choice. We will also continue to work to protect access to the network for all operators as we take forward the Railways Bill.

Railway passenger services currently operated by private sector companies under contract to the Secretary of State will transfer into DfT OLR Holdings Ltd (DOHL) when current contracts reach their end date or contractual break point.

The Government will continue to set targets for public sector train operating companies on a range of measures including punctuality, reliability and quality of service as appropriate, and will continue to hold them to account for performance against these targets. Modern service agreements, currently in development, will come into force for each train operator when operations transition into public ownership.

There will not be any immediate changes to how timetable adjustments are managed during and immediately after the transition of passenger train operations into public ownership. Railway passenger services currently operated by private sector companies under contract to the Secretary of State will transfer into DfT OLR Holdings Ltd when current contracts end or reach their contractual break point, and timetable adjustments will be managed as they currently are.

As announced in the King’s Speech 2024, forthcoming legislation will establish Great British Railways – an arm’s length body which will act as a “directing mind”, with a relentless focus on delivering for passengers and freight customers. As outlined in Getting Britain Moving, the Government’s vision is that, within the clear strategic direction set by the Secretary of State, Great British Railways will, once established, have operational independence and be responsible for planning timetables.

The Government is working at pace to review the position it has inherited on HS2, including options for Euston. We will set out a clear plan in due course.

We are committed to delivering the biggest overhaul of our railways in a generation, and ensure that Great British Railways (GBR) can drive innovation across the network.

As we bring a fragmented industry together, we will need to consider a range of options on the right approach for future terms and conditions, taking account of employment law requirements.

On the introduction of technological innovations, we expect a joined up industry to do more and faster in the use of technology for safety, cost reduction, revenue growth and accessibility, and we expect GBR to take a firm lead in this area. In the meantime, Network rail and train companies are working in this area, including through Shadow Great British Railways.

We are committed to a long-term approach to infrastructure and investment, taking account of local transport priorities. We will thoroughly review the fiscal position we have inherited before setting out more detailed plans for this in due course.

Aside from Restoring Your Railways (RYR) projects currently at the delivery stage or in construction, all remaining RYR-originated projects are now being considered as part of preparations for the Spending Review. Ministers have been clear that not all projects will be able to proceed to delivery due to the challenging financial situation facing the Department.

Aside from Restoring Your Railway (RYR) projects currently at the delivery stage or in construction, all remaining RYR-originated projects are now being considered as part of preparations for the Spending Review. Ministers have been clear that not all projects will be able to proceed to delivery due to the challenging financial situation facing the Department.

The Government recognises the importance of rolling stock manufacturing, and alongside our plan for the railways, Getting Britain Moving, we have committed to develop a long-term Rolling Stock Strategy which will support British manufacturing and innovation. My officials are working at pace on its development, and I will set out further details in due course.

My officials work closely with the sector to understand future rolling stock needs. As trains are assets with a lifespan of 35-40 years, the Government will seek to end the boom-and-bust cycle by ensuring that there is a strong pipeline of work.

There is now a clear domestic UK market for rolling stock procurement, with current competitions for SouthEastern and TransPennine Express underway. With other potential procurements on Chiltern, Northern, and Great Western upcoming, there are and will be numerous business opportunities available for rolling stock manufacturers.

Following approval of an Outline Business Case, £123m was released to Network Rail in March 2024 to commence detailed design of Midlands Rail Hub’s first phase (for additional services between Birmingham, Bristol, Cardiff, and Worcester), while subsequent phases are at an earlier stage of development. Subject to future decisions about affordability and value for money, the first stage could be complete by the early 2030s.

The Chancellor set out on 29 July a range of pressures on public spending, including £2.9 billion of unfunded transport specific spending. Following this, the Secretary of State’s Written Ministerial Statement on 30 July set out that the Department is undertaking an internal review of its capital spend portfolio. This will support the development of our new long-term strategy for transport. Any decisions about the portfolio will be subject to broader discussions and fiscal decisions made at Budget and Spending Review.

The Government’s approach will be consistent across all operators, including Greater Anglia. While National Rail Contracts (NRCs) remain in place, we will set stretching performance targets for each operator through the annual business planning process. These targets will be specific to each operator, reflecting their individual circumstances. Where performance falls short, we will require operators to put in place robust improvement plans. The Secretary of State has already met a number of poorly performing train operators and their Network Rail counterparts, setting clear expectations for immediate improvement.

The King’s Speech set out that we will be introducing legislation to establish Great British Railways (GBR) in this Parliamentary session.

The Rail Sector Transformation Programme Board will hold to account those responsible for implementing reforms and will oversee the planned savings and track incurred costs. We are applying lessons from recent National Audit Office, Public Accounts Committee and Infrastructure and Projects Authority reports, including ensuring there is effective governance and clear accountabilities.

We are committed to delivering a unified and simplified rail system that focuses on improved services for passengers and better value for taxpayers, ending years of fragmentation and waste.

We will establish Great British Railways as the directing mind in charge of Britain’s railway infrastructure and services, responsible for ensuring both work together. We will also bring passenger services into public ownership, in the pursuit of a more efficient and passenger-focused rail system.

In the interim, while National Rail Contracts (NRCs) remain in place, we will set stretching performance targets for each operator through the annual business planning process. These targets will be specific to each operator, reflecting their individual circumstances. Where performance falls short, we will require operators to put in place robust improvement plans. The Secretary of State has already met a number of poorly performing train operators and their Network Rail counterparts, setting clear expectations for immediate improvement.

Aside from Restoring Your Railways (RYR) projects currently at the delivery stage or in construction, all remaining RYR-originated projects are now being considered as part of preparations for the Spending Review. Ministers have been clear that not all projects will be able to proceed to delivery due to the challenging financial situation facing the Department.

The responsibility for the transfers from the private to the public sectors lies with DfT OLR Holdings Ltd (DOHL). DOHL is tasked with undertaking these transfers in an efficient and effective manner with no disruption to passengers and employees. The Board has a strong mix of skills, expertise and experience in the rail industry that covers safety, rail franchising, finance and management accounting, project change, project management and contracts. DOHL has managed four successful transfers so far and is scaling up to ensure the successful transfer of all train operating companies into public ownership.

The Department will continue to work with DOHL and ensure that it has sufficient capacity to take on train operating companies and manage effectively the train operating companies currently under its control as we work towards Great British Railways. DOHL is already well versed in building up specialist capacity quickly in response to a need to transfer operations to the public sector at pace. Significant work is already underway by DOHL to bring in additional capacity and expertise. We are meeting regularly with DOHL to obtain assurances that it is scaling up appropriately to meet the opportunities and challenges of public ownership and operation.

The responsibility for the transfers from the private to the public sectors lies with DfT OLR Holdings Ltd (DOHL). DOHL is tasked with undertaking these transfers in an efficient and effective manner with no disruption to passengers and employees. The Board has a strong mix of skills, expertise and experience in the rail industry that covers safety, rail franchising, finance and management accounting, project change, project management and contracts. DOHL has managed four successful transfers so far and is scaling up to ensure the successful transfer of all train operating companies into public ownership.

The Department will continue to work with DOHL and ensure that it has sufficient capacity to take on train operating companies and manage effectively the train operating companies currently under its control as we work towards Great British Railways. DOHL is already well versed in building up specialist capacity quickly in response to a need to transfer operations to the public sector at pace. Significant work is already underway by DOHL to bring in additional capacity and expertise. We are meeting regularly with DOHL to obtain assurances that it is scaling up appropriately to meet the opportunities and challenges of public ownership and operation.

The Passenger Railway Services (Public Ownership) Bill facilitates the Government’s commitment to bring passenger train operations into public ownership and enables the Secretary of State to commence the transition to public sector operation as current contracts reach their end date or contractual break point. This approach ensures that taxpayers will not need to compensate operating companies for ending contracts early.

The Bill does not exclude the possibility of terminating a contract before it expires if the train operating company defaults on its obligations, as set out in its respective National Rail Contract. National Rail Contracts are publicly available and can be accessed through the ‘Public register of rail passenger contracts’.