Select committee: Public Accounts Committee
Conclusion 10
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)
The Department told us that the pandemic presented a fundamental challenge to sustainably funding the railways and that the financial pressures have driven a stronger focus to look at the whole system and improve performance, both financially and for passengers.21 The pandemic also exposed the scale of challenge on costs. Network Rail told us that, in previous years, despite excessive costs in the system “the top revenue line was growing. It took the imperative out of the system [to focus on costs] because the numbers were still balancing themselves.”22 The interim financial framework for the railways put in place in response to the pandemic means that HM Treasury carries the risk of any shortfalls in revenue, as it was uncertain how passenger demand would recover. The separation of cost and revenue risk has meant that the Department, HM Treasury, and train operating companies have different priorities when making decisions which impact revenue.23
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.