Transport Secretary : I am today
(20 July 2017) publishing my high level output
specification(HLOS) and initial
statement of funds available (SOFA) for the railway for
control period 6, which covers the years 2019 to 2024.
The government is determined that the railway becomes more
focused on issues that matter most to passengers — such as
punctuality and reliability. A more reliable railway also plays a
critical role in underpinning economic growth and bringing the
country together. The government is committed to taking action to
achieve these outcomes.
The HLOS is therefore
focussed on the operation, maintenance and renewal of the
existing railway — the areas of activity that will deliver a more
reliable railway for passengers. The government is already
delivering significant enhancements to the railway, including
High Speed 2 and Crossrail and it expects to continue to invest
in the enhancement to the wider rail network in the next control
period. In light of the findings of the Bowe Review, which
emphasised the need to enable better planning, cost control and
alignment with the needs of users of the railway, government will
take forward the funding of these enhancements separately. The
government is developing a new process for delivering
enhancements and intends to publish more information on this in
the autumn.
On the basis of independent advice from the Office of Rail and
Road, as well as from the rail industry, the government has
agreed that an increased volume of renewals activity will be
needed over the course of control period 6, to maintain safety
and improve on current levels of reliability and punctuality,
which in places fall short of the levels that passengers rightly
expect. This enhanced programme of renewals will be supported by
appropriate volumes of operations and maintenance activity
required to maintain safety and improve the reliability and
punctuality of train services.
Before committing to the specific levels of funding required, I
have decided that the government requires more assurance on the
likely costs of the work programme. Network Rail’s progress on
improving its efficiency in recent years has fallen short of my
expectations. Improving efficiency is vital if we are to maximise
the value of taxpayer spending on the railway in driving
improvements for passengers and freight shippers.
The government will therefore carry out further work to examine
the approach to setting appropriate levels of maintenance and
renewals activity for control period 6 and to improving Network
Rail’s efficiency. This will enable me to confirm the extent of
government’s funding envelope through the publication of a
statement of funds available by 13 October 2017. This work will
draw on a number of sources, including the new independent review
of progress on efficiency planning which the regulator has
commissioned
Alongside the publication of the HLOS, I am
issuing new statutory guidance to
the independent Office of Rail and Road. This sets out my
priorities for rail regulation. These include supporting
the ORR’s work
to improve Network Rail’s efficiency and improving the experience
of users of the railway.
I am arranging for copies of the HLOS and SOFA,
and of the statutory guidance to the Office of Rail and Road, to
be placed in the libraries of the House.