Select committee: Public Accounts Committee
Conclusion 9
Thirty-Eighth Report - Rail reform: The rail transformation programme
Published 27 May 2024
Addressed to HM Treasury
Public Accounts Committee Rail reform: The rail transformation programme All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Delays to reform have added pressure to the Department’s finances and higher costs to the taxpayer for longer. The Department’s costs now exceed the revenue it receives and at a level that the Department views as unsustainable – the Department spent £3.1 billion subsidising train services in 2022–23.19 We asked the Department about the level of government subsidy for the railways and what is sustainable. The Department told us that there is no one level it could identify as sustainable but that the level of funding and subsidy for the railway is not at a sustainable level and that it needs to do two things: increase revenues and reduce costs.20
From: Public Accounts Committee, Thirty-Eighth Report - Rail reform: The rail transformation programme (HC 652), 27 May 2024
Government response
The government responded to the whole report on 11 July 2025 (deadline 27 July 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it "agrees with the Committee's recommendation" on each of the six recommendations, with target implementation dates ranging from Winter 2024 to Spring 2025, and one marked as already implemented.
- On delivering reform, it states the department is "remobilising" and preparing for the mobilisation of shadow Great British Railways, and will "set out next steps shortly". Further legislation to create GBR was announced in the King's Speech.
- On passenger focus, it says GBR will be "incentivised by targets and performance criteria set by the Secretary of State", and a new Passenger Standards Authority will independently monitor standards.
- On subsidy and value for money, the department "expects to see these reforms delivered over the course of this parliamentary term" as legislation is enacted and private operators move into public ownership. The target implementation date given is Spring 2025.
- On accessibility, it says the department "will set out next steps as soon as possible" and will use accessibility audit data from all 2,575 stations to target future investment decisions.