Railways Bill (First sitting) Debate

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Department: HM Treasury
Tuesday 20th January 2026

(1 day, 8 hours ago)

Public Bill Committees
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Baggy Shanker Portrait Baggy Shanker (Derby South) (Lab/Co-op)
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As per the register of interests, I am a member of Unite the union and vice-chair of the APPG on rail.

Laurence Turner Portrait Laurence Turner (Birmingham Northfield) (Lab)
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I am also a member of Unite the union.

Examination of Witnesses

Jeremy Westlake, John Larkinson and Alex Hynes gave evidence.

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Rebecca Smith Portrait Rebecca Smith
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Q But the responsibility for the delivery of services will be theirs. Going back to my original question about how we hold it to account, are you effectively saying that when it comes down to the individual railway lines and the services, we as MPs will be going to that chief exec and then having to figure out how we escalate it if that does not work?

Alex Hynes: Under the current system, if you want to talk about the delivery of rail services in your area, you have to talk to the relevant train operating company’s managing director and the relevant route director in Network Rail, because there is no one in charge.

These integrated business units are going to be the powerhouse of Great British Railways. We have created three of them already, albeit using a workaround within railway legislation. In Kent, on South Western and Greater Anglia, we have now appointed one person to run track and train to ensure that that person is making joined-up decisions in an integrated way, and in the best interests of passengers and taxpayers.

Also, as an accountability mechanism, it works incredibly well because there is nowhere else to go—that person is the directing mind for their chunk of the railway. Having done one of those jobs myself for seven years in Scotland, it is very effective as an accountability mechanism, and it enables much better decision making, as well as decision making that can be undertaken faster than in the current system, where we have many organisations involved in the running of the railway.

Laurence Turner Portrait Laurence Turner
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Q Good morning. I first have a couple of questions to Mr Larkinson, but if other witnesses wish to come in, please do so.

Mr Larkinson, in the ORR’s last annual report and accounts, it stated,

“we began engaging with infrastructure managers on how to reduce the administrative burdens we impose”—

in the context of the Bill and rail reform. I do not mean to suggest that “burdens”, as expressed here, are always entirely one-sided, or that the ORR is doing anything other than working within the framework that has been established for it. Can you tell us a bit about what these “burdens” are, and what potential benefits might accrue from their removal?

John Larkinson: That work comes from the Government’s overall review of regulators and the remit that they have given to all regulators to look very carefully at administrative burdens imposed on regulated companies. We are the regulator that that applies to. The target is to reduce the administrative burden by 25% by the end of this Parliament. We are working on that process as set out by the Government and have already put a whole section in our business plan about the work that we are going to do. On that basis, we have had conversations with the companies that we regulate, such as Network Rail, about areas where we might be imposing unnecessary administrative burden, which is something that is always good to come back and look at.

Interestingly, we have had different responses from the different companies that we regulate, including, “We do not see any massive excess of administrative burden.” In the case of Network Rail, we have already identified some areas, such as the amount of data we require and the way that data is transferred around us—areas where things can be made faster and less resource intensive. So yes, we are getting on with it and reporting back. Indeed, I was at the regulators council with the Secretary of State for Business and Trade and the Chancellor reporting back about a week and a half ago.

Laurence Turner Portrait Laurence Turner
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Q Does the removal of interfaces through the Bill make it easier to progress that work?

John Larkinson: We have to progress it now, so it is not conditional on the Bill in the slightest—the target is set now. We are getting on with it. It will be different with GBR, because we are dealing with a different organisation, but that is some way into the future. I have probably two years of work to do on this before we get to that point.

Laurence Turner Portrait Laurence Turner
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Q Moving on, the ORR will remain the regulator in Northern Ireland, as I understand it. It is quite a general question, but how does the role of the regulator under the Bill compare to the system in Northern Ireland, which, am I right in saying, broadly has a more European approach? Also how will it compare to other rail regulators on the continent?

John Larkinson: At a high level, they are largely non-comparable. The Northern Ireland railway is very small and has a very simple system. I remember the conversation I had with the people there when we first took on that role. Our regulation is proportionate to the size of the system. That means it does not cover safety: it is only an economic regulator. It is very narrow and focuses almost entirely on separation of accounts and issues like that. It really is not comparable.

Laurence Turner Portrait Laurence Turner
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Q Is it correct that, in theory, it has an appeals function?

John Larkinson: I think this is the thing: in theory, yes, but in practice there are very few issues that come to us as a result of that role in Northern Ireland.

Laurence Turner Portrait Laurence Turner
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Q The ORR has taken an interest in the transfer of ownership to DFTO of individual franchises—I think that is recorded in the board minutes from last year. As far as I can see, it has been some time since the discussion was recorded at the board—it is possible that I may have missed one. How do you think those transfers have gone?

John Larkinson: We have a very specific role there because, effectively, the safety management system has to be revalidated when that transfer is made. It has not been debated much by the board because it is all going extremely smoothly. We have done our role effectively on that: we have hit our deadlines and all has gone according to plan in terms of the transfer of safety responsibilities. I will be saying that again at the board next week.

Laurence Turner Portrait Laurence Turner
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Q I have one final question for Mr Hynes and Mr Westlake. We talked on the Transport Committee some time ago about progress with shadow GBR and the preparations for implementation. As it has been some time since that was discussed, and this Bill has subsequently been published, could you give us an update on the work that shadow GBR has been undertaking?

Alex Hynes: Shadow GBR continues to meet very frequently under Laura’s chairship, and it is really helping to drive alignment and convergence between the Department for Transport, DFTO and Network Rail in this pre-GBR state. Whether it is developing a leadership academy for Great British Railways, looking at where the Great British Railways headquarters is going to be, in Derby, or working with the mayoral strategic authorities on how GBR will work in partnership with said organisations, it is helping to drive the alignment of the industry in this pre-GBR state.

On 1 April, about 200 civil servants will TUPE transfer out of the Department for Transport and into DFTO. One of the things that Jeremy and I are doing is trying to get our organisations and teams—of course, there is lots of good will in this area—to work together as though we were GBR, so we can start capturing the benefits of a more integrated railway system in advance of GBR. That is going well. It is Jeremy and I working together that is enabling us, for example, to put integrated leaders in place.

You talked about the public ownership programme, which I agree is going well; I pay tribute to John’s colleagues, who work well on the safety aspects of the transfer. Jeremy and I are working—in fact, we are discussing it this week at shadow GBR—on whether and when we can put integrated leaders in place, once we have brought the businesses into public ownership, to make track and train work together and create a single point of accountability by having one person in charge for certain chunks of the railway.

Joe Robertson Portrait Joe Robertson (Isle of Wight East) (Con)
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Q This question is directed at the chief executive of DFTO. You talk about the benefits of uniting track and train in terms of management and not having too many organisations. Transport for London obviously goes further, by working across buses, trains, cycle and tube. Is there anything in the Bill that improves the connectivity of rail with other forms of transport? I am thinking not just of my Isle of Wight constituency’s connectivity with privatised, unregulated ferry companies, but of probably every constituency with buses under different ownership models. Does anything in the Bill help to the improve connections between rail and other forms of public transport?

Alex Hynes: The answer to that question is yes. GBR will be required to take into account places’ local transport plans, and there is a process by which partnerships exist, particularly with mayoral strategic authorities—that obviously does not include everywhere, but does include some places. There is also a right to request mechanism, by which people can request further devolution from GBR to their area. There is very much a place-based focus on devolution, because the whole philosophy of GBR is that, other things being equal, decisions made closer to where rail services are delivered will be better than those made hundreds of miles away.

I also think that the combination of the creation of Great British Railways—a unified, publicly owned railway for the nation—with the Government’s intention to publish an integrated national transport strategy and the changes that are happening in the bus market will very much enable us to join up transport modes in places, so that we can deliver a better service to customers.

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Edward Argar Portrait Edward Argar
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Q I want to pick a little further at the accessibility point, particularly on step-free access. By way of example, last week I got a letter from the Minister—neither of the two excellent Ministers in the Committee—saying that Sileby station in my constituency, which can be reached only by very steep steps, along with 40% of other stations in the current programme, was being cut from works to improve accessibility on the grounds of funding pressures.

The reality is that there will always be tensions between what is desired and what is affordable—that is in the nature of government. Building on what you have already said, how can those tensions be resolved to meet the duties envisaged in the Bill and the aspirations that all parties in this place have for improved accessibility, while recognising that there will always be a funding tension in anything the Government do?

I was a Health Minister and wrestled with such issues when deciding what to put in primary legislation, in secondary legislation and in statutory guidance. I would argue they have greater weight than, for example, a business plan, which is vaguer, less enforceable and less tangible than each of those other layers. You have to strike a balance of proportionality. Where do you think the specific obligations on accessibility would best sit in that hierarchy, from primary legislation in the Bill, which is right up at the top and cast in stone, to a business plan, which is much less enforceable, vaguer and can be changed?

Alex Robertson: That is a good question. You have set out the challenge and the dilemma that is true for this aspect of public services, as it is for many others. I will try to answer it in this way: wherever you put it, it must allow for the consideration of the ambition to significantly—it must be significantly—improve the service that disabled passengers receive, with decisions about funding. If you separate those two, you will get into a position where you have set a target, but it is not realistic and has no plan behind it.

You have to do that and, as I have said before, do it in a way that involves disabled passengers in the decision making. Whatever the scale of the ambition, it is perfectly possible to spend good public money inefficiently and ineffectively, and not on doing what is in the best interests of disabled passengers. It is about doing it right, as well as the amount you do.

Emma Vogelmann: From Transport for All’s perspective, as has been picked up by many others, unless accessibility is enforceable, it is treated as an optional and a nice to have: “We will get to it when we get to it, or when there is a surplus of money,” which of course there rarely is.

We have seen initiatives to make changes in the name of affordability; I am thinking particularly about the proposals to close ticket offices at stations in England a couple of years ago. That was very much an economic argument about staff not being confined to the ticket office, but in practice, for disabled people that meant that the network would become increasingly unusable and a completely unviable mode of transport for some.

I agree with what was said about needing a balance between ambition and the reality of how far those ambitions can go, but we need to be ambitious. We need to make sure that we are not accepting a slower rate of change because it is more economically secure.

Ben Plowden: Going back to a point I made before, I think the Bill should set the strategic intent that accessibility should increase over time, not just that it should be taken into consideration by GBR and the Secretary of State. The Bill should also set out how that increase is delivered. To Alex’s point, that could be done in a number of different ways, such as through service provision, infrastructure investment and so on, that would then be set out in the subordinate documents such as guidance, the licence and the business plan. The intent in the Bill would clearly be that, over time—in a way and at a rate to be determined by those other processes—accessibility would increase, not just be taken into consideration,

Michael Roberts: You have exposed exactly the difficulties in trying to navigate through all these challenges and priorities. At the risk of motherhood and apple pie, I think co-creation with the disabled community is extremely important in trying to find a way of managing these different priorities that carries the confidence that that is being done with the full consideration of the needs of the disabled travelling public.

I also think legislators ought to think, “What are the mistakes that we want to try to avoid next time around?” and then think about what levers can address those mistakes. It is extraordinary that the industry is spending over £1.5 billion building a new station at Old Oak Common, and there is no level boarding for the Elizabeth line, which is the busiest railway in the UK. I am not sure that legislation is going to fix that—that is as much about the quality of decision making within the industry—but thinking about what good looks like and then working back and thinking, “Right. What are the ways in which we can best promote that?” seems like a good way of trying to think around the problem.

Laurence Turner Portrait Laurence Turner
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Q I have a follow-up about passenger growth targets and freight growth targets. This question is not new: the freight growth target is inherited and was included or announced in the Williams-Shapps plan for rail White Paper. Mr Plowden, I am conscious that this was before your time in your present post, so perhaps this is for other witnesses. Given that we cannot question the previous Government in this Committee, based on your conversations and representations, why did the previous Government decide not to bring forward a passenger growth target alongside a freight growth target?

Alex Robertson: I do not know—I mean, I really do not know. We never got as far as having the Railways Bill in Parliament; we are fundamentally redesigning the railway, and that creates a different framework and a different set of responsibilities. I do not know; I have struggled with that question a little.

Ben Plowden: The Government did say, in their response to the consultation, that there are two reasons why, having considered the possibility of a passenger growth target, they decided not to include one. One reason was that GBR would be sufficiently incentivised through a whole variety of other means to increase passenger demand. The second reason, which I think is less convincing, is that it might lead to infinite growth over time in principle. Clearly and logically, that is possible, but the point is that the Secretary of State would set a growth target that would seek to strike a balance between what is feasible and practical, and what could be afforded in terms of taxpayer investment. It seems to us that neither of those arguments necessarily stands up, and that logically you would want to include a passenger growth target alongside the freight one.

Laurence Turner Portrait Laurence Turner
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Q Forgive me; I am particularly interested in policy development over time with this question.

Ben Plowden: I see.

Laurence Turner Portrait Laurence Turner
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A discontinuity or a change is that the draft Rail Reform Bill, published at the start of 2024, did not include a statutory freight target. I am interested in your views about the interaction between freight and passenger services, and whether the freight target is in place of a Bill or not.

Alex Robertson: I do not think I have a particular problem with freight—we represent passengers, and we have looked at it from a passenger perspective. I am comfortable that passengers are sufficiently represented in the Bill as it currently stands. That is the easiest, most direct answer I can give you.

None Portrait The Chair
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Andrew Ranger, you have 50 seconds for question and answer.