Recommendation 5

Six years since the Department started work on rail reform, it has failed to resolve fundamental disagreements and clarify key aspects of reform. The Department acknowledges that, while its white paper set the broad direction and detail for some areas of reform, there were still disagreements with HM Treasury and other stakeholders in some important areas. Unresolved issues remain regarding the extent of GBR’s role and responsibilities including the level of independence and ability it will have to be a “guiding mind” for the railways; the future commercial model between GBR and commercial operators; and how fares would be set. While it may be quite common in complex policy areas for there to be some areas of disagreement, it is surprising that the reform programme got underway without the Department and HM Treasury agreeing on such core elements. It remains to be seen how, in practice, GBR will balance providing a “guiding mind” with stepping in and directing stakeholders to a specific course of action when required. Rail reform: The rail transformation programme 7 Recommendation 5: The Department should urgently resolve disagreements ahead of taking forward reform in the next Parliament. Its Treasury Minute response should set out what areas remain to be agreed and how it and HMT plan to resolve these.