Grayling reveals terms of reference for Rail Review
THE Government’s Rail Review ( RAIL 862) will examine commercial models, industry structures, financial matters, fares and industrial relations, according to the terms of reference announced by Secretary of State for Transport Chris Grayling on October 11.
It will not include infrastructure and services that should be provided by the railway, nor reconsider public investment decisions made through existing franchise agreements, Control Period 6 commitments, HS2, and other major projects or spending decisions that will be made through the Spending Review 2019.
The terms of reference also say that recommendations “should avoid negative impacts on the public sector balance sheet and/ or creating additional government expenditure beyond reasonable transition costs”.
The review should also consider recent developments such as the establishment of LNER as the operator of last resort of the InterCity East Coast franchise, and Stephen Glaister’s inquiry into the May 2018 timetable meltdown.
It is tasked with identifying the concerns of passengers, staff and communities, should consider exploring options for devolution of rail powers, and have a structured approach to engagement with stakeholders across local, national and devolved government and industry bodies.
Terms state that the review’s recommendations should be “practical and deliverable”, and should ensure improvements for passengers are prioritised “as soon as possible” while recognising the challenges of delivering change within the current legal and regulatory frameworks. It should also consider how to reform the railway in the short, medium and longer terms, and how legislative and regulatory change could support reform.
The review will conclude with a White Paper in autumn 2019, setting out its findings and explaining how reform can be delivered. Grayling says he expects reform to begin from 2020 “so passengers will see benefits before the next election”.
Announcing the terms of reference, Grayling said that contrary to views that British Rail was in “terminal decline” before privatisation: “As we now know, the railways were not in terminal decline after all - they had simply been starved
of investment. Privatisation has reversed the decades of decline and heralded the fastest expansion of our railways since they were built by the Victorians. It has also delivered billions of pounds of investment and radically improved safety. Our railways are now among the safest in the world.”
Grayling pointed out that in places there is little resilience or margin for error in the network, meaning that knock-on effects from disruption can continue for hours, and that this is “compounded because the railway is run by multiple players without clear lines of accountability”.
While acknowledging investment in the railway, he added: “I can’t stand by while the current industry struggles to deliver the improvements that this investment should be generating.
“The review will not prevent us taking every opportunity in the short term to improve passenger experiences. That is the Government’s focus, and that is why we are committed to an investment of £48 billion in the railways over the next five years.”