Source · Select Committees · Public Accounts Committee
Tenth Report - Overview of the English rail system
Public Accounts Committee
HC 170
Published 7 July 2021
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Tenth report from Session 2021-22 · published 28 Oct 2021
Recommendations & Conclusions
20
Conclusion
Acknowledged
Net government funding increased 99.7% in real terms between 2015–16 and 2019–20 from £2.6 billion...
Conclusion
Net government funding increased 99.7% in real terms between 2015–16 and 2019–20 from £2.6 billion to £5.1 billion. This reflects increases in expenditure on operating and maintaining rail network infrastructure and the pre-COVID-19 deterioration in the passenger rail market as …
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Government Response Summary
The government acknowledges the Committee's conclusion regarding increased government funding for rail. It recognises the value of greater financial transparency and states it has already started publishing operational support payments data, is developing whole-system financial reporting, and will consider options for its publication, subject to constraints.
HM Treasury
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14
Conclusion
Acknowledged
Specifically in relation to passenger service operations, prior to the COVID-19 pandemic, private sector companies...
Conclusion
Specifically in relation to passenger service operations, prior to the COVID-19 pandemic, private sector companies operated passenger services under a franchise model but still received some level of government funding. The amount of government funding provided to train operators has …
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Government Response Summary
The government acknowledges the Committee's conclusion regarding the significant increase in taxpayer funding and the Department's new contractual arrangements for passenger services. It details that National Rail Contracts (NRCs) involve annual business plans, with revenue and cost risk primarily with the Department, and performance incentivised through fees and contractual commitments, with NRC rollout ongoing.
HM Treasury
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18
Conclusion
Acknowledged
Following our session on 13 May 2021, the Department told the Transport Committee that negotiations...
Conclusion
Following our session on 13 May 2021, the Department told the Transport Committee that negotiations with all train operators have concluded around terminating the underlying franchise agreements, which is necessary to enable the transition of operators 37 Qq 19, 31 …
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Government Response Summary
The government acknowledges the Committee's observations on the transition to National Rail Contracts (NRCs). It details that NRCs require operators to deliver against annual business plans with revenue and cost risk largely with the Department, and performance is incentivised through fees and contractual commitments to specific activities.
HM Treasury
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