Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Significant disagreements persist between the Department and HM Treasury regarding GBR's remit and future commercial model.
Recommendation
We asked the Department about the challenges presented by not having agreement with HM Treasury from the outset of the programme about some of these aspects. The Department told us that the white paper had the collective agreement of ministers and set the broad direction and detail for some areas of reform but, in other areas, it did not set out all the detail and differing views became apparent over important, technical issues. The Department held the view that it is not exceptional for such ongoing debate to happen in complex policy areas that have a significant financial impact on government finances. It said that an Infrastructure and Projects Authority (IPA) review around 2022 had highlighted that it needed greater alignment with HM Treasury over its plans if it was to make progress.42 The Department told us that there are still outstanding issues for discussion with HM Treasury around GBR’s responsibilities and level of independence, and the future commercial model and the extent to which the private sector takes more of the revenue risk.43
Government Response Summary
The government will work closely with HM Treasury on defining the role, function and oversight of Great British Railways to ensure the railway is financially sustainable and will set out further information on plans for legislation as soon as is practical.
Government Response
Accepted
HM Government
Accepted
5. PAC conclusion: Six years since the Department started work on rail reform, it has failed to resolve fundamental disagreements and clarify key aspects of reform. 5. PAC recommendation: 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. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 5.2 The department is working closely with HM Treasury, including on how it defines the role, function and oversight of Great British Railways to ensure the railway is financially sustainable as the railways are brought into public ownership. Further information will be set out on plans for legislation as soon as is practical.