Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
Department's rail reform activity significantly reduced, focusing on short-term gains rather than comprehensive change.
Recommendation
The Department’s scale of activity compared to its initial reform programme is much reduced. Its focus is on three types of work: short-term benefits it can achieve without legislation; promoting greater collaboration and culture change within the rail sector; and continuing some work on the future end state for reform.31 We asked the Department what realistic progress they can make without legislation. It told us it cannot do the complete job but can make inroads and is concentrating on several things. It explained it is looking to introduce an integrated business planning process so that it can start looking at whether decisions deliver better outcomes for the system, or just better outcomes for individual organisations. It highlighted an example of a pilot between Network Rail and the train operating company Anglia which is focusing on how to improve collaboration and decision making to deliver passenger outcomes.32
Government Response Summary
The government agrees and lists progress made prior to the 2024 General Election, including barcode ticketing and LNER initiatives, and says it is focused on delivering benefits for passengers and taxpayers ahead of legislation to establish GBR. It also mentions resolving the national pay dispute with ASLEF and mobilising shadow GBR.
Government Response
Accepted
HM Government
Accepted
4. PAC conclusion: We are not convinced that the Department has paid sufficient attention, in advance of the delayed creation of Great British Railways, to the changes it can make now to improve the situation for passengers and taxpayers. 4. PAC recommendation: The Department needs to make tangible, visible progress in implementing reforms which improve outcomes for passengers and taxpayers. Its Treasury Minute response should set out: • what passenger improvements and outcomes it has delivered, and • an update on the savings it has made from rail reform in this interim period and how it has made these savings. 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 Prior to the 2024 General Election, the department was focused on delivering the reforms which could be progressed ahead of legislation, in line with the 2021 Plan for Rail. Progress included: • Barcode ticketing technology rolled out across the network. • London North Eastern Railways (LNER) simpler fares and single leg pricing trials to reduce the complexity of purchasing a ticket. • Contactless “pay as you go’” (PAYG) ticketing being expanded in the South East, with 6 stations added in the Summer and a further 47 ready to launch in the Autumn. • “Pay as you go” pilots announced in Greater Manchester and West Midlands, as well as trailblazer deeper devolution deals. • Minimum target for growing rail freight volumes on the network announced. • The second Great British rail sale was launched, providing significant ticket discounts to journeys for passengers. 4.3 The Plan for Rail originally forecasted £2.6 billion gross savings over the three-year Spending Review 2021 period (2022-23 to 2024-25) based on the previous government’s policy. As set out in the National Audit Office report, the department forecast gross savings across the Spending Review 2021 period to be around £2 billion. This accounted for estimated savings from workforce reform, fares, ticketing and retail reform and structural and commercial reform, some of which are non-cashable savings. 4.4 This government is now focused on delivering benefits for passengers and taxpayers ahead of legislation to establish GBR. Resolving the national pay dispute with Associated Society of Locomotive Engineers and Firemen (ASLEF) will reduce disruption due to industrial action linked to the dispute and enable operators to deliver more reliable services to passengers and recover lost revenue. 4.5 The mobilisation of shadow GBR will see an immediate focus on improving services for passengers, unlocking barriers to delivery and improving the financial sustainability of the railway. Through key organisations working in partnership as shadow GBR, we will harness the leadership of the whole system with a common goal of improving services for passengers and freight customers.