Recommendation 16

HM Government · verbatim extract Rejected

The Government notes this recommendation. The Government agrees with the Committee that increasing passenger numbers is important not only to encourage modal shift and connectivity but also to increase revenue and reduce taxpayer subsidy. It is crucial that GBR does not just look to manage demand at a steady rate – GBR must actively work to attract passengers to use our railways. This is not only central to the Government’s plans to reform our railways but must also be central to GBR once it is established. However, the Government disagrees that including a passenger growth duty is the only way to ensure this. In fact, the shared goal of passenger growth is already enabled by the following: First, as a commercially minded organisation operating passenger services, GBR will be naturally incentivised to drive up revenue through growing its passenger base and attracting more people to use the railways. Second, the LTRS will also set out the Government’s wider plans for encouraging more passengers to our railways and will ensure this is considered by GBR within its Business Plan and wider objectives. And finally, GBR’s general duties at clause 18 include a duty to promote the interests of users and potential users of the railway. This requires GBR to consider how best to encourage new users onto the railways – it is already, effectively, a passenger growth duty. Fulfilling this duty is likely to include working towards modal shift, extending the network to areas with poorer connectivity, or making informed choices to grow different types of services such as leisure journeys to make the railways more attractive to passengers. The Government does not agree that an additional passenger growth target within the legislation is necessary, given the existing measures to support passenger growth. In discharging the full remit of its duties, GBR will be able to make sensible rounded decisions to target passenger growth across the network in a sustainable way. The Government agrees there would be a clear omission within the legislation should there be no mechanism to consider future passengers on the railway. However, GBR’s duties clearly address this and ensure that GBR is actively promoting the interests of users and potential users of the railway.