Source · Select Committees · Public Accounts Committee
Thirty-Eighth Report - Rail reform: The rail transformation programme
Public Accounts Committee
HC 652
Published 27 May 2024
Recommendations
5
Acknowledged
Urgently resolve fundamental disagreements with stakeholders on Great British Railways' role and commercial model.
Recommendation
Six years since the Department started work on rail reform, it has failed to resolve fundamental disagreements and clarify key aspects of reform. The Department acknowledges that, while its white paper set the broad direction and detail for some areas …
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Government Response Summary
The government agrees to resolve disagreements regarding Great British Railways' role, function, and oversight to ensure financial sustainability, stating that further information on legislative plans will be provided as soon as practical.
HM Treasury
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6
Acknowledged
Meaningfully engage with the rail workforce to ensure successful implementation of sector reforms.
Recommendation
The Department has failed to engage with the workforce to successfully deliver its reform ambitions. Good policymaking relies on effective stakeholder engagement. The Williams Rail Review involved extensive consultation with trade unions and workers across the railway to understand their …
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Government Response Summary
The government agrees to meaningfully engage with the workforce, citing a recent pay proposal to the ASLEF trade union, and reiterates its belief that partnership with workforce representatives is essential for reform.
HM Treasury
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Conclusions (6)
9
Conclusion
Acknowledged
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 …
Government Response Summary
The government agrees the level of funding and subsidy for the railway is not sustainable and says it needs to increase revenues and reduce costs. They are committed to delivering a unified and simplified governance structure for the railways, alongside passenger train services under public ownership, with the objective of providing improved services for passengers and better value for money for taxpayers.
10
Conclusion
Acknowledged
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. …
Government Response Summary
The government agrees with the Committee’s recommendation. They are committed to delivering a unified and simplified governance structure for the railways, alongside passenger train services under public ownership, with the objective of providing improved services for passengers and better value for money for taxpayers.
20
Conclusion
Acknowledged
We asked the Department for its views on the current commentary around GBR and the balance between it acting as a guiding or directing mind. The Department said it is important to find the right balance between the guiding mind who is guiding but also who is prepared to stand …
Government Response Summary
The government states its ambition is to set the long-term strategy and priorities for the railway, with Great British Railways (GBR) acting as a “directing mind” focused on improving the rail network and the passenger experience.
21
Conclusion
Acknowledged
Reviews by the IPA and the Department in early 2023 found that the Rail Transformation Board’s governance was confused, accountabilities unclear, and there was not agreement across stakeholders on the scope and delivery approach of the Programme. The Department recognises that there will be a challenge in getting stakeholders to …
Government Response Summary
The department is preparing for the mobilisation of shadow GBR which will facilitate closer working between the senior leaders of Rail Services Group (RSG) in Department for Transport, Department for Transport Operator of Last Resort Holdings Limited (DOHL) and Network Rail (NR) to drive improvements. The IPA will provide assurance of the rail sector transformation programme delivery plan.
22
Conclusion
Acknowledged
The Department agreed with HM Treasury that it would deliver £2.6 billion in savings from rail reform by 2024–25, with most savings expected to come from workforce reform plans including modernising ways of working within train stations, improving control and deployment of drivers, and reductions in staff numbers.47 The Department …
Government Response Summary
The government is resetting the relationship with the trade unions as part of its overall approach to reforming the railways and has recently made a proposal to the ASLEF trade union to settle the existing national pay dispute.
24
Conclusion
Acknowledged
Network Rail told us about its good, constructive relationships with trade unions which have allowed it to achieve workforce efficiency and productivity savings of around £775 million.53 They provided examples of headcount reductions from losing around 2,500 managers, work reductions whereby technology means they no longer use people for certain …
Government Response Summary
The Committee notes Network Rail's good relationship with unions and associated savings.