Transport Secretary puts rail reform back on track

For too long, the rail reform agenda has been stuck in the sidings, despite broad industry agreement that the current system is not fit for purpose and is neither delivering for the customer nor the taxpayer.

In reaffirming the government’s plans to deliver GBR, Transport Secretary Mark Harper has fired the starting gun on an ambitious reform agenda. Confirming the creation of the guiding mind for the sector, the Department has committed to:

• A simplified rail system, bringing track and train operation under one roof and guaranteeing clear lines of accountability.
• A relentless and welcome focus on the customer – both passengers and freight.
• A long-term strategic vision for the sector, moving away from short-term approach that has held back investment.
• An enhanced role for the private sector, with increased competition, innovation and revenue growth expected across the entire network.

Alongside this, the Transport Secretary spelled out the first step in reforms to fares and ticketing: the rollout of more Pay-As-You-Go options, and single-leg pricing to simplify ticketing on key services. However, this alone will not be enough to tackle the complexity of ticketing structures, and continued work will be needed to ensure that customers can return to the rail sector with the knowledge that they are getting value for money.

While the creation of GBR will require primary legislation, a timetable for which has yet to be set out, the government can make decisions now that will support the rail sector’s growth. Reuniting cost and revenue at the DfT, and thereby ensuring that the current sole focus on cost reduction is replaced by a focus on growing revenue and passenger numbers, is vital. The DfT and GBRTT must also move quickly on a rail freight growth target, and promptly publish their response to last year’s call for evidence.

Business will look forward to further details about the new Passenger Service Contracts, and government must ensure that these deliver a model with sufficient flexibility and incentives to drive revenue growth and increase passenger numbers. This enhanced private sector role is vital to reinvigorating the post-COVID railway, and business stands ready and eager to deliver.