King's Speech 2023 - Draft Rail Reform Bill

Tuesday, 7 November 2023 12:28

The railways are a vital part of the transport system of Great Britain. They support over a billion journeys per annum, employ over 100,000 people and carry millions of tonnes of freight each year. Rail touches all corners of the country, connecting communities and forming an iconic part of our industrial heritage. The public rightly expect ever more from our railways, but the structure that has evolved over time now needs legislation to set the foundations for further...Request free trial

The railways are a vital part of the transport system of Great Britain. They support over a billion journeys per annum, employ over 100,000 people and carry millions of tonnes of freight each year. Rail touches all corners of the country, connecting communities and forming an iconic part of our industrial heritage.

The public rightly expect ever more from our railways, but the structure that has evolved over time now needs legislation to set the foundations for further progress. In order to meet the demands of a modern economy and society, we need our railways to be more responsive and more efficient, more adaptive to technology and innovation, and to fully embrace the private sector and its benefits.

The draft Rail Reform Bill sets a bold vision for future rail customers – of punctual and reliable services, simpler tickets and a modern and innovative railway that meets the needs of the nation. It helps deliver on the 2019 manifesto commitment by bringing forward the biggest rail reform programme in a generation to create a simpler, more effective rail system.
Given the scale and complexity of the changes being made to the sector, it is right that the draft Bill undergoes pre-legislative scrutiny to provide Parliamentarians and experts across industry the opportunity to review and test the legislation in draft. This will allow for a swifter passage through Parliament when the legislation is brought forward.

What does the draft Bill do?

Prior to the COVID-19 pandemic the railways had experienced significant growth with passenger numbers doubling in two decades. Thousands of new, cleaner and greener trains were introduced, dozens of new stations have opened, hundreds have been made more accessible and modern, and in 2018, rail travel achieved its highest share of all miles travelled in Great Britain since 1965. The pandemic presented an existential challenge to the railways. Almost overnight, passenger numbers fell to levels last seen in the 1850s, reaching just 5 per cent of previous demand in April 2020. This impacted railway revenue and saw an increase in reliance on taxpayer investment.

However, the structure that has evolved over time now needs legislation to set the foundations for further progress. The draft Rail Reform Bill will enable:

More accountability: Bringing together the management of the network and the commissioning of passenger services into a new public rail body that puts
customers first and delivers efficiency. The Secretary of State’s franchising authority functions will be transferred to Great British Railways, ensuring that operational and infrastructure decisions are made in a co-ordinated way. The new body will serve as the single point of accountability for the performance of the railway where previously it was split between Network Rail and the Secretary of State.
- Better service: Simplifying fares and ticketing, providing more convenient ways to pay with the rollout of Pay As You Go and new ways of buying tickets such as single leg pricing which will make the railways easier to use (for example by removing the anomaly of some single tickets being almost as expensive as a return ticket). Whole system strategic decision-making should lead to improved reliability and performance of train services. Great British Railways’ regional structure is intended to ensure differing regional customer needs are part of decision-making.
- Smarter growth: Developing the right commercial conditions to empower the private sector to reinvigorate the industry, drive innovation and most importantly, attract more customers to the railway. We need a pragmatic partnership between state and industry, properly harnessing the dynamism and efficiency of the private sector. This will help drive new investment and innovation in the railways to better deliver for existing customers and attract new ones.
- Greater efficiency: Establishing Great British Railways will create a simpler industry structure. It will be adaptable to changing customer needs, working in close partnership with the private sector (including train operating companies, freight operators, suppliers and innovators) to deliver a more efficient, modern rail system underpinned by better collaboration and aligned incentives, generating value and savings that will have benefits for passengers and taxpayers.
- Improved focus on customers through specific accessibility and freight duties: Introducing specific duties in relation to accessibility and freight, set out in the Great British Railways’ licence, will ensure that accessibility on the railway is improved and the experience for disabled passengers is enhanced. Rail freight will be targeted for growth, recognising the sector’s economic benefits and potential for expansion.
- Whilst this primary legislation is needed to establish Great British Railways, many reforms and tangible benefits for rail users are being delivered now. This includes simplifying fares and continuing the rollout of Pay As You Go and barcode ticketing, building local partnerships, a new Rail Freight Growth Target, simplifying industry practices, improving rail contracts and delivering workforce reforms.
Territorial extent and application
- The Bill extends UK-wide, and most measures apply to Great Britain.
Key facts
- The railways are used by millions of people to access work, education, leisure and other vital services, carry millions of tonnes of freight, helping to reduce congestion from the roads, and employ around 100,000 full-time people across train operating companies. Over a billion passenger journeys were made by rail in Great Britain over the last year.
- The Government appointed independent Chair Keith Williams to conduct a root- and-branch review of the railways after a timetable change in May 2018 exposed the system’s lack of leadership, coordination and customer focus.
- These reforms reflect the findings of the Williams review and the Plan for Rail White Paper - which were strongly endorsed by the industry. Williams rightly identified serious issues facing the railways before the pandemic struck, which were then exacerbated. Despite progress, legislation is needed to complete the process of reform and futureproof the industry.
- The Great British Railways Transition Team has been established and is bringing the industry together, by encouraging close industry working, supporting revenue recovery efforts, generating additional passenger revenue and journeys. It has established a Strategic Freight Unit to provide strategic leadership to unlock opportunities for growth in the sector and develop options for a long-term rail freight growth target. After a competition involving the public from our railway towns and cities, Derby was chosen as the home for the headquarters of Great British Railways.
- New national flexi season tickets are on sale, with over 900,000 sold since launch, alongside the continued rollout of digital ticketing.
- Single leg pricing has been extended to the rest of the LNER network and we have begun the roll-out of Pay-As-You-Go ticketing in the South East, as well as working with Greater Manchester and West Midlands on Pay-As-You-Go as part of the Trailblazer deals.
- The accessibility audit of all 2,578 railway stations in Great Britain is complete and the National Rail Accessibility Strategy is being developed. The results will help people with accessibility needs better plan their journeys and travel with confidence.