Recommendation 3

Published information from the Department and the Office of Rail and Road on whole-system costs and revenues is not sufficient to inform proper oversight of the rail system, given the extent of taxpayer exposure. The arrangements for delivering rail services in England involve complex financial flows and contractual obligations between a range of private and public sector bodies. The lack of a complete set of public data makes it difficult for Parliament and taxpayers to understand the overall financial position of the system, and the impact of government’s choices. In addition, the taxpayer has borne the brunt of the financial burden of supporting the rail system through the COVID-19 pandemic. Until recovery is more certain, the Department has said that financial risk will remain with government and the taxpayer. Given this, the Department must improve transparency over the costs across the whole industry and use whole-system financial and management information to oversee its financial contributions and ensure value for money. On operator contracts specifically, through its proposed quarterly monitoring, the Department now has an opportunity to develop its reporting to inform its oversight and improve the transparency of decisions made in passenger operations. Recommendation: The Department should write to the Committee by December setting out its plans to improve transparency. As a minimum these should include: • the regular publication of ‘whole-system’ financial data, further developed to assist meaningful oversight; and • regular reporting to Parliament on the progress and implementation of the Rail white paper.