Williams-Shapps Plan for Rail - Executive Summary

On 20 May 2021, the Government released the Williams-Shapps Plan for Rail (White Paper). Please see the White Paper for full details.

This is a high level condensed summary of the White Paper, followed by (i) the short term deliverables and (ii) the pre-reform and post-reform structure of the railways.

We have produced a Summary of the Review and our comments on the Ten Key Impacts of the Review are set out here.

Great British Railway (GBR)

Created as a new public body, and the railway's "single operating mind". GBR will absorb Network Rail (NR), along with certain functions of the DfT and the RDG. It will become the owner of NR infrastructure. Its binding mandate is to have as its primary focuses the interest of passengers, freight customers, tax payers and growing rail usage.

GBR strategic decisions will be taken centrally, with operational matters and budgets held by 5 regional divisions.

SoS for Transport will be accountable to Parliament for how the railways deliver for passengers, communities, the economy, the environment and taxpayers.

Replacing Franchising

Passenger operators (Operators) will have a new role under new Passenger Service Contracts (PSC). Under the PSCs, GBR will collect fare revenue (take revenue risk), whilst Operators manage their costs and deliver the specifications required by GBR/the PSC (and take cost risk), in return for a fee. Pre-reform and post-reform structures are outlined in the infographics below.

PSCs will specify service plans/timetables for Operators to meet, performance criteria to be met, and introduce scorecard linked incentives and revenue incentives to ensure Operators fulfil their obligations. Operators will be incentivised to grow rail usage.

PSCs will be tailored by GBR's regional divisions, with the length, size and specifications of PSCs reflecting local markets and needs.

GBR will run competitions for PSCs, with Government aiming to launch first competitions in 2022.

Brand

There will be a national brand – an updated version of the classic 'double arrow' logo - and identity to emphasise that the railways are one connected network, with regional variants.

Infrastructure Access Arrangements and ORR

Track access will be overhauled to make the best use of the rail network in the overall public interest. New legislation will provide GBR with powers and duties to plan the use of the network and allocate access, with protections built in for rail freight. Stations will be managed by GBR. ORR will have enhanced monitoring and scrutiny powers over GBR, with a reduced economic regulator role.

Service Quality

Trains will be governed by new design and ride standards introduced by GBR to ensure improved comfort (particularly seating) and, subject to negotiations and business case approval, GBR may bring forward normal replacement cycles of existing trains.

Customer Service will be paramount, with metrics closely measured under PSC performance incentives, and workforce incentive and reward structures will be introduced based on performance and passenger satisfaction.

Frictionless Payment Options

Digital tickets are to be developed for regional, long-distance and frequent journeys, including the digitisation of season tickets. New 'Pay As You Go' contactless methods of payment will be introduced to networks outside of London for commuters and cities.

Modernised Fares

GBR will set fares under a framework agreed by Ministers. Long-distance service operators may have more commercial freedom over some fare setting and advanced booking tickets, and walk-up fares will remain available.

Flexible season tickets will be introduced to allow travel on any 8 days in a 28-day period (on-sale on 21 June, for use by 28 June).

Reviews of peak and off-peak services across the network will be made when demand patterns post pandemic become clearer.

GBR Portal

A single website and app will be created to end the current array of train company sites and standards, which may also become a portal for all public transport services, selling integrated tickets across different transport modes. Alongside the GBR website and app, tickets will continue to be sold by independent retailers. It is also proposed that the GBR portal links with the new Data strategy proposed under the White Paper (see below).

Data

The White Paper proposes the creation of a new Rail Data Service within GBR to implement an 'open by default' approach to data, improving transparency and unlocking new technology. There is a proposal for new information such as average punctuality data, expected service crowding and real-time updates on station accessibility and service times to be rolled out at stations, on trains and directly to passengers.

Environment

GBR will bring costed options to decarbonise the whole network to Government, building on the forthcoming Transport Decarbonisation Plan and NR's recent Traction Decarbonisation Network Strategy. Future electrification announcements are to follow shortly and battery and hydrogen-powered trains will be trialled for passenger routes where conventional electrification is uneconomic.

A comprehensive Environment Plan for the rail network will be published in 2022 and as part of this, a single measurement methodology for carbon across the railways will be adopted.

Workforce

The Government has set out plans to implement a flexible and sustainable workforce, including a sustained programme to invest in skills, training and leadership across the sector. Employees may transfer to GBR from NR, RDG, DfT and Operators.

GBR will develop a workforce plan which brings together demands of the railway and supply of skills, to enable strategic assessment of skill requirements.

The ORR will collect and publish data on salaries and productivity, alongside comparisons to other sectors and labour markets. A standardised approach for reporting staff costs will be introduced for passenger operators and GBR, with regular reviews to determine the effectiveness of resource management and technology use.

Cross-transport integration

The Government has committed to making journeys across transport methods 'seamless' in the future, and will reverse the trend of decreasing on-train space for bikes.

The White Paper also proposes integration/collaboration with key infrastructure, notably digital infrastructure in the form of broadband. Private sector funding will be used to upgrade the fibre network used on the railways and in turn facilitate the Government's broader broadband strategy.

Interaction with Private Sector including Freight

New legislation will introduce safeguards for freight operators, ensuring fair access to the rail network. GBR will have a statutory duty to promote rail freight, and will create a national freight co-ordination team. The Government will issue guidance on priorities for rail freight in each funding settlement and provide a growth target for rail freight.

Private partners will be contracted with where they are best placed to carry out work, with greater contestability built into the procurement process. Where used, GBR will need to demonstrate that sub-contracting is cost-effective. There is a continuing focus on bringing private sector railway investment, and no immediate plans to change the current regime for train leasing and maintenance.

Industry Structure

Pre-reform

Post-reform

Figures 1 & 2 - GBR: Williams-Shapps Plan for Rail, p50-51