Industry insiders warning that new body's 'thin structure' will mean the taxpayer being billed for expensive private consultants
The Department for Transport argues the reforms are necessary as the current system means 14 different train operating companies and results in a “competing and conflicting” rail network. Changing who runs the trains is also unlikely to reduce fares because of nationalisation alone. We already know in the short term that they are in fact going to increase in price, with the recent Budget revealing a 4.6 per cent rise in rail fares from March 2025. Going forward, rail will now be competing for investment with the demands of other public services, including the NHS, schools and defence. This is particularly challenging in the current financial climate.
The Department for Transport is due to launch a consultation in the new year before tabling a new, far larger piece of legislation that will contain the vast majority of the Government’s reform plans, including the creation of the new GBR. “We will offer our services as consultants,” the executive said. “For us it is more straightforward, because we can offer our expertise without any of the operating costs, but it is not great for the taxpayer.”
Asked whether this would lead to the Government being charged at higher rates to keep the trains running, the source replied: “Goodwill is going to be much, much lower than it will have been previously. Operators are sensible businesses and where there’s a market opportunity, they will endeavour to meet it.But the insider added: “I don’t think people will profit gouge or hold them to ransom.
“The political risk is very high indeed,” the same rail industry chief said. “The Government is now taking responsibility for improvement. But things go wrong on the railways all the time – cows on the level crossing, storm damage, union relations. The private sector gave the Government a bit of a buffer. That has now been removed and all the problems we’ve seen in the last four years – that’s all on them.