Rail Reform

How the railways currently work

The UK’s railway system is made up of multiple organisations, each responsible for different aspects of running the network. While this structure was designed to introduce competition and improve efficiency, it has often led to complexity, delays, and confusion over accountability.

The Department for Transport (DfT), overseen by the Secretary of State for Transport, provides strategic direction and funding to the railways in England and Wales and buys rail franchises and projects. Network Rail owns, operates and maintains railway infrastructure, including tracks, signals, bridges, tunnels, and most stations, and is responsible for safety, network planning, and delivering upgrades and enhancements. The train operating companies (TOCs) run passenger rail services under franchise, contract, or open-access arrangements and are responsible for customer services, timetabling and tickets in on their routes.  Freight operating companies (FOCs) operate freight services, moving goods by rail. The Office of Road and Rail regulates the industry to ensure safety, fair access to the network, and value for money and is responsible for overseeing Network Rail’s performance and economic regulation.

Right now, responsibility for the railway is split between infrastructure and operations. This split has created some key challenges:

• Coordination issues – The lack of integration between train services and the track they run on has led to a lack of accountability and leadership for ensuring reliable services.
• Complicated ticketing – Different train companies have different types of tickets which vary in price, making it harder for passengers to find the best deal.
• Fragmentation – No single organisation is fully responsible for the network, leading to inefficiencies.

This model has also brought some benefits – such as private sector investment and some improvements in quality – but it is widely seen as overly complex and in need of reform, which is exactly what the Government is now proposing.

What is the Government proposing?

The Government wants to bring the whole network back together under public control, setting up a new public body called Great British Railways which will be responsible for both the railway infrastructure (the tracks) and the most passenger rail services (the trains).

Whilst the plan is to bring almost all the currently privately operated passenger train services under public control, some private operators will continue running open access services, currently these are mainly on the East Coast Main Line from King’s Cross to the North of England.

Great British Railways will have a duty to provide fair access for all operators on the network, and a duty to promote the use of rail freight, which will continue to be operated by private Freight Operating Companies (FOCs).

The Office of Rail and Road will continue as the industry regulator to ensure safety and act as a strong appeals body to protect fair access to the network and value for money. The Government is also planning to introduce a new Passenger Watchdog  to independently represent passenger interests, monitor service standards, handle unresolved complaints, and provide guidance on accessibility and customer service.

How will they do this?

Closer collaboration between Network Rail and the Department for Transport has already begun, with a ‘shadow’ Great British Railways established in September 2024. To legally establish Great British Railways as an arm’s length body, the Government must pass legislation in Parliament. The Government has committed to introduce this legislation to Parliament in the first term.

What are the hopes for rail reform

It is hoped that rail reform will create an integrated and seamless network for passengers and freight users alike, leading to:

• Better reliability and punctuality – By having one organisation in charge of both trains and tracks, decision making is likely to be faster and more coordinated, reducing delays and improving overall service quality.
• A simplified fares and ticketing structure – A key goal of Great British Railways is to introduce easier, more flexible ticketing options. This could make fares fairer and more transparent for passengers. However, it may not reduce the cost of train tickets.
• More cost-effective operations – The current fragmented system is expensive to run, with overlapping responsibilities and inefficiencies. By streamlining operations, the hope is that Great British Railways will deliver better value for money for both taxpayers and passengers.
• Long-term investment and modernisation – A single ‘directing mind’ should make it easier to plan and implement infrastructure improvements, such as station upgrades, electrification projects, and new rail lines.
• Passenger-focused services – With accountability clearly assigned to one organisation, passengers should see improved customer service, clearer communication, and a network that prioritises their needs over bureaucracy.

How is the Government involving passengers in its plans?

Whilst the decision has been taken to fundamentally change the way the rail network is run and the legal process to establish Great British Railways and give it control of the rail is underway, how the promised improvements will actually be delivered is still up for discussion. To help inform how Great British Railway will operate – and what reforms needs to happen – the Government is running an eight-week public consultation. We will be responding to the consultation with our key asks. If you would like to respond to the consultation individually or on behalf of your organisation, follow the guidance on the Department for Transport consultation website.