Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Delays in rail reform legislation mean significant forecast savings will not be achieved.
Conclusion
We asked the Department for clarity around how the new contracts would work. The Department told us that it is in the process of developing a further version of national rail contracts, designed to further encourage growth in revenue and passengers, and focus on the passenger experience. It said that until it has real clarity on when GBR will be created, and who the contracting body will be, it will not be in a position to return to competition with passenger service contracts.33 The Department told us that it will have much greater certainty once legislation is in Parliament and it can then start to accelerate some of its plans. It said that the period between legislation passing and GBR becoming operational could take up to two years.34 The Department had expected reform to result in annual savings of £1.5 billion from 2026–27 onwards, but these savings have been delayed with Great British Railways not yet established.35 We asked the Department if it was still on track to meet its planned savings. The Department told us that it does not expect to achieve all the savings it forecast and cited legislation as one of the reasons why it cannot realise the full benefits of reform.36