Oral Answers to Questions

Jerome Mayhew Excerpts

Thursday 12th February 2026 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

When these Ministers came to power, they promised that they would act to reduce the waiting time for a driving test, and not just by a little bit; they said they would get it down to seven weeks. A year later, the waiting time is now 21.9 weeks. In fact, it has gone up by three weeks since they came into power. That is not really a sign of competence, is it?

[Lilian Greenwood]

I have to say, the shadow Minister has some brass neck in criticising our Government on this issue. The National Audit Office, in its December report into driving test waiting times, was very clear:

“DFT had limited involvement in helping DVSA tackle driving test waiting times up to mid-2024. Prior to 2024, DFT largely left DVSA to try and resolve the issue”.

The hon. Gentleman does not have a leg to stand on.

--- Later in debate ---

[Mr Speaker]

I call the shadow Minister.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

The Government claim to be simplifying rail fares, but we are beginning to see what they mean by that. London North Eastern Railway is scrapping off-peak and super-off-peak tickets, doubling the price of some journeys; it says that that is in the name of simplification. c2c has cut a 40% off-peak discount, straight after nationalisation. Elsewhere, analysis by The Daily Telegraph has revealed that rail passengers are now spending 40% more on some journeys than before the general election. Does the Minister accept that removing the cheapest fares in pursuit of a political slogan is not always in the best interests of the travelling public?

Railways Bill (Fourteenth sitting)

Jerome Mayhew Excerpts

Tuesday 10th February 2026 Public Bill Committees

[Keir Mather]

Clause 87 points towards schedule 3, which contains minor and consequential amendments arising from the Bill. The Bill has broadened its scope, and much of the related previous legislation will need altering slightly. These minor and consequential amendments allow for the necessary changes and updates to be made, and will help propel the Bill forward. I therefore commend the clause and schedule 3 to the Committee.

Amendments 188, 191 to 193 and 196 to 199 in my name are consequential amendments to the Railways Act 1993, the Railways Act 2005 and the Greater London Authority Act 1999 that reflect the removal of franchising. The new provisions about railway passenger services and the creation of GBR. For example, it was necessary to make some amendments to the closures regime in the 2005 Act as it was aligned with the franchising system in the 1993 Act, whereas we now need it to align with the Bill. Importantly, there is no change to the outcome to the closures process, and the role of the ORR and Ministers is not changing.

Amendment 190 ensures that documents sent in accordance with the Railways Act 1993 and the Bill can be sent electronically. It is a common and standard amendment to reflect technological developments. Amendments 187, 189, 194 and 195 remove provisions that are no longer necessary.

The last thing I will address in this group is clause 88, which I commend to the Committee. It will give the Secretary of State powers to make amendments that are consequential to the Bill. That will ensure that the statute book is tidy and appropriately reflects the changes the Bill makes. I stress that this power cannot be used to make policy changes and is intended only to ensure that the outcomes of the Bill are not hindered or confused by existing legislation that should have been consequentially amended.

[Jerome Mayhew]

I have no comments.

[Keir Mather]

I thank the shadow Minister for that.

Question put and agreed to.

Clause 87 accordingly ordered to stand part of the Bill.

Schedule 3

Minor and consequential amendments

Amendments made: 186, in schedule 3, page 70, line 27, at end insert—

“7A In section 18, omit subsection (6A).”

This amendment removes provision about franchised and operator of last resort services, which will no longer be necessary.

Amendment 187, in schedule 3, page 70, line 28, at end insert—

“8A In section 22(1), omit ‘or Schedule 4A to this Act’.

8B In section 22C(2), for ‘, subsection (1) above or Schedule 4A to this Act’ substitute ‘or subsection (1) above’.”

This amendment removes provision referring to Schedule 4A to the Railways Act 1993, in consequence of the repeal of that Schedule by the Bill.

Amendment188, in schedule 3, page 72, line 28, at end insert—

22A “(1) Section 130 is amended as follows.

(2) In subsections (1ZA) and (1ZB), omit ‘under Welsh franchise agreements’.

(3) In subsection (1ZC)(a)(ii), omit ‘under a Welsh franchise agreement’.

(4) In subsection (1A), for paragraphs (a) and (b) substitute—

‘(a) a Scotland-only service; or

(b) any other railway passenger service provided or secured to any extent by the Scottish Ministers.’.”

This amendment makes changes to the penalty fare provisions of the Railways Act 1993 that reflect the way passenger services will be provided under Part 2 of the Bill.

Amendment 189, in schedule 3, page 72, line 34, at end insert—“23A Omit section 136.”

This amendment repeals section 136 of the Railways Act 1993, which is no longer necessary.

Amendment 190, in schedule 3, page 73, line 12, at end insert—

“24A (1) Section 149 is amended as follows.

(2) In subsection (1)—

(a) after ‘this Act’ insert ‘or the Railways Act 2026’,

(b) after paragraph (a) insert—

‘(aa) by sending it to the person by agreed electronic means (for example, by email to an agreed address); or’, and

(c) in paragraphs (b) and (c), after ‘paragraph (a)’ insert ‘or (aa)’.

(3) After that subsection insert—

‘(1A) Subsection (1)(aa) does not apply in relation to a document required or authorised by virtue of sections 118 to 120 or 149A to be given or served by the Secretary of State to or on any person.’

(4) After subsection (3) insert—

‘(3A) A notice sent to a person by electronic means is, unless the contrary is proved, to be treated as having been given on the working day immediately following the day on which it was sent.’

(5) At the end of subsection (5) insert—

‘“working day” means any day other than—

(a) a Saturday or a Sunday,

(b) Christmas Day or Good Friday; or

(c) a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.’”

This amendment allows for the electronic service of documents under the Railways Act 1993 and the Bill.

Amendment 191, in schedule 3, page 73, line 13, at end insert—

“25A (1) Schedule 6 is amended as follows.

(2) Omit paragraph 1(aa).

(3) In paragraphs 3, 7(2) and (4), 8, 9 and 10(5), for ‘appropriate national authority’, in each place it occurs, substitute ‘Secretary of State’.

25B In paragraph 1(1) of Schedule 11, in the definition of ‘eligible person’, in paragraph (a)(ii) for the words from ‘or a body’ to ‘agreement’ substitute ‘, Great British Railways or a subsidiary of Great British Railways’.”

This amendment makes consequential amendments of the provision about railway administration orders and provides for employees of Great British Railways and its subsidiaries to be eligible persons for the purposes of pension schemes.

Amendment 192, in schedule 3, page 73, line 34, at end insert—

“27A (1) Section 163 is amended as follows.

(2) In subsection (4A)—

(a) for ‘Network Rail Limited’, in each place it occurs, substitute ‘Great British Railways’;

(b) for ‘Network Rail’, in both places it occurs, substitute ‘Great British Railways’.

(3) In subsection (8)—

(a) in the definition of ‘land used by Network Rail’, for ‘Network Rail’, in each place it occurs, substitute ‘Great British Railways’;

(b) omit the definition of ‘Network Rail’.”

This amendment amends provisions of the Greater London Authority Act 1999 to reflect the new role of GBR.

Amendment 193, in schedule 3, page 73, line 36, leave out from “(1)(a)(ii)” to the end and insert

“for ‘franchise agreements,’ substitute ‘a public service contract awarded as mentioned in section 31(2) of the Railways Act 2026,’”.

This amendment provides for the duty to co-operate for the purpose of co-ordinating public transport for travel to and in Greater London to apply in relation to services provided under a public service contract awarded under clause 31(2).

Amendment 194, in schedule 3, page 74, line 2, at end insert—“29A Omit section 205.”

This amendment repeals a spent provision of the Greater London Authority Act 1999 relating to franchise agreements.

Amendment 195, in schedule 3, page 74, line 8, at end insert—

“32A Omit sections 3 and 4.”

This amendment repeals provisions of the Railways Act 2005, which are no longer required due to the provision made by this Bill.

Amendment 196, in schedule 3, page 74, line 11, at end insert—

“33A In section 6, omit subsections (5), (6) and (8).

33B (1) Section 8 is amended as follows.

(2) Omit subsections (1), (7) and (8).

(3) In subsection (2) omit—

(a) ‘also’; and

(b) ‘otherwise than under franchise agreements’.

(4) In subsection (5), omit ‘(1) or’.

(5) In the heading, omit ‘Franchising and’.

33C (1) Section 10 is amended as follows.

(2) Omit subsections (1), (3), (6), (10) and (11).

(3) In subsection (4) omit—

(a) ‘also’; and

(b) ‘otherwise than under franchise agreements’.

(4) In subsection (8), omit ‘(3) or’.

(5) In the heading, omit ‘Franchising and’.”

This amendment and amendments 197 and 198 amend provisions of the Railways Act 2005 to account for changes made by this Bill, in particular the ending of the franchise system.

Amendment 197, in schedule 3, page 74, line 12, at end insert—

“34A Omit section 16.

34B Omit section 18.

34C Omit section 20.

34D (1) Section 22 is amended as follows.

(2) In subsection (1)(a), for the words from ‘in’ to the end substitute ‘under section 31 of the Railways Act 2026;’.

(3) Omit subsection (10).

(4) In the heading, omit ‘non-franchised’.

34E (1) Section 23 is amended as follows.

(2) In subsection (1)(a), for the words from ‘in’ to the end substitute ‘under section 31 of the Railways Act 2026;’.

(3) Omit subsection (8).

(4) In the heading, omit ‘non-franchised’.

34F (1) Section 24 is amended as follows.

(2) In subsection (2)(a), for ‘a franchised service’, substitute ‘a service provided under section 31 of the Railways Act 2026’.

(3) In subsection (7), omit ‘franchise agreement or any other’.

(4) For subsection (9) substitute—

‘(9) The duty of the national authority under subsection (8) is discharged without its taking further steps so long as the provisions of any arrangements, in force at the time of the proposal, so far as they require the provision of the services, continue in force without modification.’

(5) In the heading, omit ‘franchised or’.

34G In section 32(12)—

(a) omit ‘franchise agreement or other’;

(b) in paragraph (a), omit ‘franchised service or’;

(c) in the words after paragraph (b), omit ‘agreement or’.

34H In section 34(2B), omit ‘under a Welsh franchise agreement’.

34I In section 35(6C), omit ‘under a Welsh franchise agreement’.

34J For section 36(7) substitute—

‘(7) Where a service is designated as experimental or its designation is extended, the person designating must give notice of the designation or extension to the person who is to provide the service.’

34K (1) Section 37 is amended as follows.

(2) In subsection (1)(a), for ‘a franchise agreement under which’ substitute ‘arrangements under which it is required that’.

(3) In subsection (2)(a), for ‘a franchise agreement’ substitute ‘arrangements of the type mentioned in subsection (1)(a)’.

34L In section 38(2A), omit ‘under a Welsh franchise agreement’.

34M In section 39, omit subsections (1) to (3).

34N (1) Section 40 is amended as follows.

(2) For subsections (4) and (5) substitute—

‘(4) For the purposes of this section the appropriate national authority is—

(a) in a case where the railway passenger service that is interrupted or discontinued is a service which may be designated under section 25 of the Railways Act 2026, the Secretary of State;

(b) in a case where the railway passenger service that is interrupted or discontinued is a service which may be designated under section 26 of that Act, the Scottish Ministers;

(c) in a case where the railway passenger service that is interrupted or discontinued is a service which may be designated under section 27 of that Act, the Welsh Ministers,

and where in any case there is more than one appropriate national authority they shall each have the powers conferred by this section.’

34P (1) Section 41 is amended as follows.

(2) In subsection (2), after ‘Passenger Transport Executive,’ insert ‘a mayoral combined authority, a mayoral combined county authority,’.

(3) In subsection (4), in both places it occurs, after ‘Passenger Transport Executive’, insert ‘, mayoral combined authority or mayoral combined county authority’.

34Q In section 42(1B), omit ‘under a Welsh franchise agreement’.

34R (1) Section 45 is amended as follows.

(2) In subsection (1)—

(a) at the appropriate place, insert—

‘“mayoral combined authority” and “mayoral combined county authority” have the same meanings as in the English Devolution and Community Empowerment Act 2026;’

(b) in the definition of ‘railway funding authority’, after paragraph (d) insert—

‘(da) a mayoral combined authority;

(db) a mayoral combined county authority;’;

(c) in the definition of ‘secured service’ omit paragraph (a).

(3) In subsection (5A) omit ‘under a Welsh franchise agreement’.

(4) In subsection (8), at the end insert ‘or in an Act or a Measure of Senedd Cymru’.”

See the explanatory statement for amendment 196.

Amendment 198, in schedule 3, page 74, line 13, at end insert—

“35A For section 48(4) substitute—

‘(4) In this section “relevant Scottish service” means—

(a) a Scotland-only service;

(b) a railway passenger service that is provided to any extent under section 31(3) of the Railways Act 2026; or

(c) a station service provided in relation to a station in Scotland at which services falling within paragraph (a) or (b) make a scheduled call.’

35B For section 48A(4) substitute—

‘(4) In this section “relevant Welsh service” means—

(a) a railway passenger service that is provided to any extent under section 31(4) of the Railways Act 2026; or

(b) a station service provided in relation to a station at which only services falling within paragraph (a) make a scheduled call.’”

See the explanatory statement for amendment 196.

Amendment 199, in schedule 3, page 74, line 14, at end insert—

“36A Omit Schedule 4.

36B In paragraph 3(2) of Schedule 7, after paragraph (e) insert—

‘(ea) if the proposal affects its area, a mayoral combined authority;

(eb) if the proposal affects its area, a mayoral combined county authority;’”—(Keir Mather.)

This amendment amends the Railways Act 2005 to make consequential provision related to the functioning of GBR.

Schedule 3, as amended, agreed to.

Clause 88 ordered to stand part of the Bill.

Clause 89

Regulations

Question proposed, That the clause stand part of the Bill.

[Keir Mather]

Clause 89 provides clarity on the regulations that may be made under the powers granted by this Bill by listing the procedures that will apply to them.

Amendment 200, in my name, provides a definition of passenger transport executive for an integrated transport area. This is required in the Bill, as provisions elsewhere repeal a definition included in the 1993 Act that could otherwise have been relied on.

Passenger transport executives were established by the Transport Act 1968 to provide and coordinate public transport across modes in major urban areas. The evolving landscape of devolution has seen some authorities choose to absorb passenger transport executive functions into their mayoral combined authorities. However, the Greater Manchester, Liverpool City Region and North East combined authorities have chosen to retain separate passenger transport executives to deliver transport functions. This is a technical amendment, consistent with existing policy. It provides certainty for areas in England that still operate passenger transport executives, and supports wider Government commitments to close collaboration with local partners. I encourage Members to support it.

I will now address clauses 90, 91, 92 and 93. Clause 90 provides definitions and explanations of the words and phrases used in the Bill. Clause 91 sets out that the Bill extends to England, Wales and Scotland, and that clause 86, on the Luxembourg protocol, also extends to Northern Ireland. Clause 92 sets out the details of when a number of clauses will come into effect; clauses 85, 86, 88 to 91, 92 and 93 will all come into force on the day that the Bill receives Royal Assent, while the remaining provisions will come into force on the day, or days, set by the Secretary of State in regulations. Clause 93 sets out that this Bill, once it has become an Act, can be known as the Railways Act 2026.

For the very final time, I commend the clauses to the Committee.

[Jerome Mayhew]

Before I respond to that, Mr Western, is this my last opportunity to speak in the Committee?

[The Chair]

No.

[Jerome Mayhew]

In that case, these are all straightforward ancillary parts to the Bill, and I have no comments to make.

Question put and agreed to.

Clause 89 ordered to stand part of the Bill. 

Clause 90

General interpretation

Amendments made: 200, in clause 90, page 53, line 12, at end insert—

“‘Passenger Transport Executive for an integrated transport area’ means a body which is the Passenger Transport Executive for an integrated transport area for the purposes of Part 2 of the Transport Act 1968;”

This amendment defines Passenger transport executive for an integrated transport area for the purposes of the Bill.

Amendment 263, in clause 90, page 53, line 31, at end insert

“, except in relation to the expression ‘wholly owned by the Crown’ (as to which see section 151(2) of the Railways Act 1993)”.—(Keir Mather.)

This amendment provides for the meaning in the Bill of “wholly owned by the Crown” to be that given by section 151(2) of the Railways Act 1993.

Clause 90, as amended, ordered to stand part of the Bill.

Clause 91

Extent

Amendments made: 201, in clause 91, page 53, line 32, at end insert—

“(A1) This Act extends to England and Wales and Scotland only, subject to subsections (A2) to (1).

(A2) Section 86 and this Part extend also to Northern Ireland.

(A3) His Majesty may by Order in Council provide for any of the provisions of section 86 and this Part, or any regulations under that section (whether made before or after the making of the Order in Council), to extend with or without modifications to the Isle of Man.

(A4) The power under subsection (A3), so far as relating to regulations, includes power to provide for the regulations as amended from time to time to extend as mentioned in that subsection.”

This amendment allows clause 86 and regulations under it to be extended to the Isle of Man by Order in Council.

Amendment 202, in clause 91, page 53, line 35, leave out subsection (2).—(Keir Mather.)

This amendment is consequential on amendment 201.

Clause 91, as amended, ordered to stand part of the Bill.

Clauses 92 and 93 ordered to stand part of the Bill.

Question proposed, That the Chair do report the Bill, as amended, to the House.

[Jerome Mayhew]

I am not going to suggest that we do not progress the Bill to its next stage, because I am not sure I would win that vote, but I want to take this opportunity to thank the Minister for the constructive approach that he has taken to addressing the various amendments and new clauses that the Opposition and the Liberal Democrats—I hope I can speak for them, too—have tabled. I am surprised that he did not adopt a single one of them, but he dealt with them in an unfailingly courteous and thoughtful manner, and I am very grateful to him.

I am also grateful to the Chairs—including you, Mr Western—for agreeing to hold the ring, and to the Clerks, who have done an excellent job helping us to navigate a process that, for me, anyway, is just as complex and confusing at the end of the Committee’s proceedings as it was at the beginning. That must make me a very slow learner.

Finally, I am grateful to all the Committee members, particularly those on the Government Benches. Having sat there myself for what felt like years, I know that it is deeply frustrating to be told by the Whips not even to intervene, let alone make a speech, while the shadow Minister expands at length. There are reasons why we do it, and I hope that those Government Members who have been on this side of Committees will remember them, but I am very grateful for the patience that they have shown me and for the work that they have done with the Committee as a whole.

With that, I am happy for the Bill to progress to the next stage.

[Olly Glover (Didcot and Wantage) (LD)]

It is a pleasure to serve under your chairship, Mr Western, during the final hour of this Bill Committee. May I briefly associate myself with the remarks of the shadow Minister? I thank everybody for their courteous and warm-spirited approach to proceedings, and I thank all the Chairs and the Public Bill Office for all their assistance.

Railways Bill (Thirteenth sitting)

Jerome Mayhew Excerpts

Committee stage
Tuesday 10th February 2026 Public Bill Committees

[The Chair]

We are now sitting in public and the proceedings are being broadcast. Before we begin, I remind Members to please switch electronic devices to silent and that tea and coffee are not allowed during sittings. The selection and grouping document shows the way in which amendments and new clauses have been arranged for debate. Any Divisions on amendments and new clauses will take place in the order that they appear on the amendment paper.

Clause 80

Duty to consult Scottish and Welsh Ministers

[Jerome Mayhew (Broadland and Fakenham) (Con)]

I beg to move amendment 103, in clause 80, page 47, line 13, leave out subsection (1) and insert—

“(1) Great British Railways must inform Scottish Ministers before making a decision within subsection (2), and if, in the view of Scottish Ministers, the decision would significantly affect the interests of Scotland’s economy or of persons living in, working in, or visiting Scotland, Great British Railways must consult Scottish Ministers before making that potential decision.”

This amendment would ensure that Scottish Ministers, rather than GBR, decided whether a GBR decision would significantly affect Scotland’s economy or persons living in, working in, or visiting Scotland.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 104, in clause 80, page 47, line 21, leave out subsection (3) and insert—

“(3) Great British Railways must inform Welsh Ministers before making a decision within subsection (4), and if, in the view of Welsh Ministers, the decision would significantly affect the interests of Wales’ economy or of persons living in, working in, or visiting Wales, Great British Railways must consult Scottish Ministers before making that potential decision.”

This amendment would ensure that Welsh Ministers, rather than GBR, decided whether a GBR decision would significantly affect Wales’ economy or persons living in, working in, or visiting Wales.

Clause stand part.

Amendment 105, in clause 81, page 47, line 35, leave out subsection (1) and insert—

“(1) Great British Railways must inform a mayoral combined authority prior to making a decision within subsection (2), and if, in the view of the mayoral combined authority, the decision would significantly affect the economy of the authority’s area or of persons living in, working in, or visiting the area, Great British Railways must consult the mayoral combined authority before making that potential decision.”

This amendment would ensure that mayoral combined authorities, rather than GBR, decided whether a GBR decision would significantly affect the authority’s economy or persons living in, working in, or visiting the authority.

Clause 81 stand part.

Amendment 106, in clause 82, page 48, line 25, leave out subsection (1) and insert—

“(1) Great British Railways must inform Transport for London prior to making a decision within subsection (2), and if, in the view of Transport for London, the decision would significantly affect Greater London’s economy or of persons living in, working in, or visiting Greater London, GBR must consult Transport for London before making that potential decision.”

This amendment would ensure that TfL, rather than GBR, decided whether a GBR decision would significantly affect the Greater London’s economy or persons living in, working in, or visiting Greater London.

Government amendments 158 to 160.

Clause 82 stand part.

New clause 25—Local infrastructure change reporting—

“(1) The Secretary of State must, at least once every five years, publish a report assessing long term-changes needed to local rail-related infrastructure.

(2) The Secretary of State must consult local authorities prior to the publication of any report under subsection (1) and ensure that any such report considers proposals made by local authorities.

(3) A copy of a report published under subsection (1) must be laid before Parliament and sent to—

(a) the Transport Committee of the House of Commons,

(b) the Housing, Communities and Local Government Committee of the House of Commons.

(4) Reference in this section to the Transport Committee and Housing, Communities and Local Government Committee of the House of Commons—

(a) if the name of either Committee changes, are references to that Committee by its new name, and

(b) if the functions of either Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as references to the Committee by which the functions are exercisable.”

This new clause requires collaborative strategic planning between central government and local authorities.

[Jerome Mayhew]

That will teach me to go away for a day; the Committee finished off half the Bill without me. Anyway, we will go back to the usual slow progress today!

Clause 80 is pretty straightforward. Great British Railways will have a duty to consult Scottish Ministers before making decisions that relate to cross-border services designated under clause 25, where—this is the important bit—

“the decision will significantly affect…Scotland’s economy or…persons living in, working in or visiting Scotland.”

Similarly, the clause requires GBR to consult Welsh Ministers where its decisions relate to services designated by the Secretary of State that are provided in Wales under a similar process.

Most of the clause is pretty unremarkable, but there is one glaring issue with it: it asserts that GBR will decide for itself when a decision will “significantly affect” the Scottish or Welsh economies. The Minister will recognise that GBR is not an economic forecasting or policymaking body and cannot credibly assess national economic impact internally. The clause therefore makes the duty discretionary and risks major decisions proceeding without any meaningful consultation of either Welsh or Scottish Ministers. How is it sensible for GBR to have the duty to assess whether a proposed action is likely to affect the economies of either Scotland or Wales?

That brings me neatly on to amendments 103 and 104. Amendment 103 would ensure that Scottish Ministers, rather than GBR, decided whether a GBR decision would significantly affect Scotland’s economy or persons living in, working in or visiting Scotland. Surely that is the correct approach. Similarly, amendment 104 would ensure that Welsh Ministers, rather than GBR, took the decision. Effectively, instead of GBR having the responsibility to say, “This affects Scotland and/or Wales, and therefore we should consult,” the amendments would give the power to the Scottish or Welsh Ministers to call in a decision on their assessment of their own economy. Surely that is the better approach. I look forward to hearing the Minister’s rebuttal.

Clause 81, which introduces a duty to consult mayoral combined authorities, is pretty similar to clause 80. In the interest of speed, I will skip straight on to amendment 105, which would ensure that mayoral combined authorities, and not GBR, decided whether a GBR decision would significantly affect the authority’s economy. I am repeating a similar argument, but it is an important one—one of process rather than any political issue. Again, we are talking about a rail body making an assessment of the impact of its activities on an economy that it is not a specialist in.

Clause 82 creates a duty to consult Transport for London. Again, we have the same concerns as we had regarding clauses 80 and 81. Under the franchise system, the Mayor of London, and other mayors for that matter, were able to drag in rail operators to question them about their performance and standards; however, that right of consultation seems to have been removed. Is this a deliberate decision by the Minister to reduce the rights of mayors and mayoral combined authorities in relation to consultation? If it is, I would be grateful if he could explain why he has reduced powers, as opposed to increasing them.

Amendment 106 would ensure that TfL, rather than GBR, decided whether a GBR decision would significantly affect the Greater London economy or persons living in, working in or visiting Greater London. I am sure the Minister will speak to Government amendments 158 to 160 in a moment, but to anticipate his comments, they provide a duty to consult Transport for London to cover designated railway passenger services that operate to, from or within Greater London. The Opposition have no objection to these clarifying amendments.

Finally, I understand that new clause 25, tabled by the hon. Member for Didcot and Wantage, is intended to facilitate collaborative strategic planning between central Government and local authorities, and would require the Secretary of State to publish a report every five years assessing the long-term changes needed to local rail-related infrastructure. We support the principle of the new clause, but I recognise that a five-year reporting requirement is an onerous task to impose if no concrete improvements follow. I look forward to hearing what the hon. Member has to say in support of his new clause.

[Olly Glover (Didcot and Wantage) (LD)]

It is a pleasure to serve under your chairship once again, Sir Alec. Before I speak to new clause 25, let me make a few comments about the Government and Conservative amendments. I see nothing to object to in the Government amendments, which seem to tidy up some aspects of the Bill surrounding interfaces relating to TfL; I await the Minister’s comments. We support the Conservative amendments, which would strengthen the role of devolved Scottish and Welsh Ministers, mayoral authorities and TfL in relation to GBR’s decisions. That is the right principle because, as I shall argue, for too long decisions about our rail network have been focused on London and the south-east, sometimes to the detriment of regional development.

Our new clause 25 would require the Secretary of State to publish a report at least once every five years on the long-term rail infrastructure changes needed at a local level. It would force the Secretary of State to consult with local authorities and would ensure that those views are properly considered, reported and laid before Parliament. Local authorities understand where infrastructure is holding back growth, connectivity and reliability. Whether it is the need for additional passing loops—were my hon. Friend the Member for West Dorset present I am sure that he would talk about the west of England line—station upgrades or better integration with local bus services, such issues are often well known locally but struggle to be given a proper voice under our current arrangements. The new clause would create a formal mechanism to surface those priorities and ensure that they are not overlooked.

The powers in the Bill are not just for this Government and this Parliament, so it is important that appropriate checks and balances are put in place. The new clause would restore balance by embedding local government and parliamentary scrutiny into long-term rail planning, while making sure that local people’s voices are heard by the Government on the changes that they want to see. By requiring reports to be shared with relevant Select Committees, new clause 25 would strengthen accountability and transparency. It would support joined-up, evidence-based planning and help to ensure that Great British Railways delivers the improvements that reflect local need.

To address the shadow Minister’s point, I understand where he is coming from, but were somebody to be punished by being required to tot up the reports that would have to be laid before Parliament under amendments that he and I have tabled, I think it is possible that he might win. In that context, we do not think that this is overly onerous, but we look forward to hearing the Minister’s comments on how the local authority voice can be strengthened.

[The Parliamentary Under-Secretary of State for Transport (Keir Mather)]

Good morning, Sir Alec; it is a pleasure to serve under your chairship once again. I thank the hon. Member for Broadland and Fakenham for amendments 103 to 106, which would require GBR to inform the relevant devolved Ministers and bodies before taking a decision that affected them, and the relevant Minister or body to decide whether consultation is necessary, if they deemed the decision to be significant. Each of the amendments does the same thing, for Scottish Ministers, Welsh Ministers, mayoral combined authorities and TfL respectively. They would reverse provisions in the Bill as drafted that require GBR to consult the relevant devolved Minister or body if it considers a decision significant.

The Committee has heard that GBR will be the directing mind of the railways. I fully recognise the need for Scottish and Welsh Ministers, mayoral combined authorities and TfL to be suitably informed and consulted on decisions of GBR that relate to them. GBR is already required by the Bill to have regard to the Scottish Ministers’ rail strategy, statement of objectives, and directions and guidance; to the Welsh Ministers’ transport strategy; to the local transport plans of MCAs; and to the Mayor of London’s transport strategy. Furthermore, in the case of Scotland and Wales, the memorandums of understanding required by the Bill will ensure that any significant decision affecting Scotland or Wales is not made without the proper engagement of the relevant Government and transport body. In the case of mayoral combined authorities and TfL, there is a clear intention for GBR to work closely in partnership with mayoral authorities including TfL. An industry-developed practitioner guide on how GBR could work in partnership locally was published on 13 January, and GBR will be a proactive partner with all those bodies.

Clauses 80 to 82 already require consultation on significant decisions. Rather than improving the Bill, amendments 103 to 106 would fundamentally hamstring GBR’s decision-making powers by creating unnecessary additional requirements. Decision making would become inefficient and less responsive to passengers and freight. Consultation will ensure that Scottish and Welsh Ministers can share their views, perspectives and expertise on the economic impact of GBR’s decision making.

[Jerome Mayhew]

The Minister asserts that the amendments would make the process inefficient. Will he please explain why giving mayoral combined authorities or the Scottish or Welsh Ministers the power to call in consultation would make the process less efficient?

[Keir Mather]

Enabling mayoral combined authorities to be consulted on GBR’s proposals creates a basis on which MCAs and GBR can engage with each other to explore challenges as could relate to economic impact. The issue with calling in consultation in every instance is that it might not always be appropriate to do so. Where a more iterative process is possible, and Scottish Government and Welsh Government colleagues, for example, are best able to feed in and solve problems through consultation, it is not necessary to layer more formal processes on top.

It is worth restating for the benefit of the Committee that the Welsh and Scottish Governments are pleased with the basis on which the devolved arrangements have proceeded in the creation of the Bill. Clauses 80 to 82 as drafted will ensure that GBR engages on issues of importance, and that it consults Scottish and Welsh Ministers, rather than drowning in irrelevant detail. I urge the hon. Member for Broadland and Fakenham to withdraw amendment 103 and not to move amendments 104 to 106.

I thank the hon. Member for Didcot and Wantage for tabling new clause 25, which would require the Secretary of State to publish a report

“at least once every five years…assessing long term-changes needed to local rail-related infrastructure.”

Across this Parliament, the Government are making a record £120 billion capital investment in long-awaited infrastructure projects—including road, rail and green energy projects—that will generate the jobs of the future and drive growth. The Government also hugely support collaboration to encourage a more locally focused railway. Insights from local communities, who know their areas best, will play a significant part in achieving that.

The Bill requires GBR to consult with mayoral strategic authorities and to have regard to their local transport plans. GBR will agree partnerships with mayoral strategic authorities to enable effective collaboration and local influence. That will mark a change in approach in how the railway engages locally, providing single-point accountability and enabling GBR to better meet the needs of areas and wider communities. Furthermore, all tiers of local government will benefit from empowered local GBR business units that are outward-facing and engage local authorities on their priorities and local transport plans. Such engagement and partnerships will ensure that there is sufficient opportunity for local authorities and mayoral strategic authorities to be collaborative with GBR on their priorities and to consider proposals.

Government amendments 158 to 160, which are a continuation of the technical amendments that we debated when considering the group led by amendment 165 to clause 6, will support more effective co-operation on local railway matters. They clarify the definition of a London passenger railway service to provide consistency in geographical scope with other duties and powers in the Greater London Authority Act 1999. They expand the scope of the duty on GBR to consult with TfL so that it applies to passenger services to, from and within Greater London, and not just those within it.

In summary, clauses 80 to 82 introduce statutory duties on GBR to consult Scottish and Welsh Ministers, MCAs and TfL before it makes a decision about services or infrastructure that would significantly affect the interests of their areas. The rationale for the clauses is compelling. They provide assurance to the relevant people and organisations that they will be properly engaged when GBR makes decisions that significantly impact their areas. By embedding such a broad duty in legislation for the first time, we ensure that engagement is not optional but a requirement. That will lead to better decision making, stronger relationships and outcomes that take account of the needs of communities across Great Britain.

[Jerome Mayhew]

The Minister has heard my submissions. In the interest of time, I will not press my amendments to a vote. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 80 ordered to stand part of the Bill.

Clause 81 ordered to stand part of the Bill.

Clause 82

Duty to consult Transport for London

Amendments made: 158, in clause 82, page 48, line 30, after “a” insert “London”.

This amendment and amendments 159 and 160 provide for the duty to consult Transport for London to cover designated railway passenger services that operate to, from or within Greater London.

Amendment 159, in clause 82, page 48, line 30, after “service” insert—

“(within the meaning of section 175 of the Greater London Authority Act 1999)”.

See the explanatory statement for amendment 158.

Amendment 160, in clause 82, page 48, line 30, leave out

“which is provided in Greater London”.—(Keir Mather.)

See the explanatory statement for amendment 158.

Clause 82, as amended, ordered to stand part of the Bill.

Clause 83

Advice from relevant local government bodies

[Keir Mather]

I beg to move amendment 161, in clause 83, page 49, leave out line 11 and insert—

“(a) railways in the body’s area, or

(b) railway services—

(i) between places in the body’s area, or

(ii) between places in the body’s area and places outside that area.”

This amendment provides for advice to be given by local government bodies to GBR about railway services that operate to, from or within their areas.

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[Jerome Mayhew]

These are two unremarkable clauses. We have no objections to either of them. As for the Government amendments, they are technical in nature and we also support them.

[Keir Mather]

While I reject the charge that the amendments are unremarkable, I thank the shadow Minister for his support.

Amendment 161 agreed to.

Clause 83, as amended, ordered to stand part of the Bill.

Clause 84

Advice from Transport for London

Amendments made: 184, in clause 84, page 49, line 30, after “function” insert

“(within the meaning of the Railways Act 2026)”.

This amendment defines GBR’s statutory functions in the new section 176A(3) of the Greater London Authority Act 1999.

Amendment 162, in clause 84, page 49, line 31, leave out

“railways or railway services in”

and insert—

“(a) railways in Greater London, or

(b) railway services—

(i) between places in Greater London, or

(ii) between places in Greater London and places outside”

This amendment and amendment 163 provide for advice to be given by Transport for London to GBR about railway services that operate to, from or within Greater London.

Amendment 163, in clause 84, page 49, line 31, at end insert—

“(4) Expressions used in this section and in Part 1 of the Railways Act 1993 have the same meaning in this section as in that Part.”—(Keir Mather.)

See the explanatory statement for amendment 162.

Clause 84, as amended, ordered to stand part of the Bill.

Clause 85

Licensing etc of train drivers

[Jerome Mayhew]

I beg to move amendment 107, in clause 85, page 50, leave out line 3.

This amendment would prevent the Secretary of State from changing the body that gives licences certificates so that it remains the ORR.

[The Chair]

With this it will be convenient to discuss clause stand part.

[Jerome Mayhew]

Clause 85 relates to the licensing of train drivers, and other matters relating to them. It gives the Secretary of State the power to amend the Train Driving Licences and Certificates Regulations 2010 and related assimilated law through regulations. The Secretary of State, by interest, has also been empowered to appoint a person or a body to publish and maintain technical standards in a document separate from the regulations.

The regulations set out the requirements that ensure train drivers are competent, medically and psychologically fit, trained on the infrastructure, rolling stock and routes that they are to be deployed on, and generally able to drive trains safely. The power to amend that legislation is required to ensure that the train driver licensing regime can be updated to reflect technological, clinical and medical advancements. The ability to update the legislation on an enduring basis will help to modernise the framework and support health and safety outcomes for train drivers, as well as avoiding operational impacts such as train drivers being unable to be deployed on account of not passing outdated medical tests. The ability to designate a person or body, for example the Office of Rail and Road or GBR, to publish and maintain technical standards will allow the train driving regime to remain adaptable and effective. We are therefore support that.

Subsection (2)(b) does not confirm the ongoing role of the ORR to issue licences or certificates. That is much bigger. Through its omission, it opens the door to the removal of the ORR’s role on this important issue. Unions would clearly fall under the definition in subsection (6)(a), but the drafting effectively ringfences them as the primary consultees while shutting out operators, GBR, passenger groups and safety bodies from the mandatory list. There is a non-mandatory ability to consult, but it seems very odd to identify unions but not any of these other very important organisations as part of a mandatory consultation list. That creates an odd imbalance for regulations that directly affect service delivery and safety, giving one group a guaranteed seat at the table while everyone else is included only at the Secretary of State’s discretion.

Amendment 107 would prevent the Secretary of State from changing the body that gives licences and certificates, so that it remains the Office of Rail and Road, once again restoring power to the independent regulator with experience and expertise in this space. That is a small but important point. It may have been an oversight on the part of the drafters that the ORR is not mentioned. If the intention is to remove that responsibility from the ORR, and that is the Government’s ambition as a result of the clause, perhaps the Minister could make that clear? If not, amendment 107 makes it clear that the ORR is the anticipated body.

Amendment 108 is not part of this group but would affect the clause, and would require the Secretary of State to consult passenger and freight service operators, groups representing passengers and railway rail safety organisations before making regulations about the licensing or certification of train drivers. That would mean that not just Labour’s union colleagues would be consulted. I mention the amendment in passing because it is relevant to the discussion of this clause, and I see the Minister nodding sagely.

I intend to seek a Division on amendment 107 if the Government are not minded to accept it.

[Keir Mather]

I will begin by attempting to assuage some of the shadow Minister’s concerns in this space as it relates to the ORR and licensing. There are no plans to transfer the train driving licensing and certification functions from the ORR, railway undertakings and infrastructure managers to other bodies. However, while there are no plans to transfer functions at this stage, it is possible that changes may be needed or sought by future Governments to reflect wider changes to the structure, responsibilities and roles in the rail industry—as has happened before. For that reason, these powers are vital to ensure the regime for train driving can function as intended and with the appropriate bodies responsible for issuing licences and certificates.

I thank the shadow Minister for his amendment, and understand the importance of what he is driving at when it comes to the all-important issue of safety. His amendment would ensure that only the ORR may issue train driving licences. It would remove the ability to update the arrangements for issuing train driving licences and certificates in the future, for example, to reflect a change in the name of the issuing authority or a transfer of functions from one body to another. It is important that the licensing and certification regime can be adapted and changed if needed, including who issues that documentation, because it may be needed to reflect future changes to industry structures, roles and responsibilities.

The Government’s position is supported by the ORR, which is the current licensing authority. Removing the power to change the arrangements for issuing licences and certificates could undermine our ability to ensure driver licensing and certification arrangements stay fit for purpose as the industry, technology and ways of working evolve. If such proposals were brought forward, the clause as drafted would ensure that any changes are subject to a full public consultation followed by parliamentary scrutiny under the draft affirmative procedure before becoming law. That process affords multiple opportunities for stakeholders’ views to be considered. I therefore urge the shadow Minister to withdraw the amendment.

Clause 85 allows the Secretary of State to amend the Train Driving Licences and Certificates Regulations 2010 by means of secondary legislation. Those regulations establish the requirements for train drivers in Great Britain, which presently cannot be updated regularly without primary legislation, which is a lengthy and inefficient process. The powers in the clause are critical if the Government are to ensure that the framework for train driving remains robust, responsive and fit for purpose in the years ahead.

The Committee may be aware that legislation is due to be laid today to lower the minimum age for train drivers. However, that is being done using time-limited powers in the Retained EU Law (Revocation and Reform) Act 2023, which will expire in June 2026. Without this clause, such changes to the law, which will help us to address the shortage in train drivers, will not be possible. The power will allow the regime to evolve in line with best practice, incorporating advances in technology, innovation, operations and safety knowledge, for instance by regularly revising eyesight and hearing requirements to reflect advances in corrective technologies, improved testing methods and emerging medical conditions. Without those powers, the industry will be less effective at integrating new technologies, scientific methods or innovations into the train driving regime as they emerge. I therefore commend clause 85 to the Committee.

[Jerome Mayhew]

As I mentioned, we support the intention behind these clauses, but I stand firm in defending the need for the ORR to be the issuing body, so I will press my amendment to a Division.

Question put, That the amendment be made.

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[Keir Mather]

Amendments 201 and 202 in my name will allow the Government to extend clause 86, on the Cape Town convention and the Luxembourg protocol to the convention as they relate to railway rolling stock, and part 4 of the Bill to the Isle of Man. We have consulted the Isle of Man and the other Crown dependencies on whether they would like us to extend this section of the Bill to them. The Isle of Man alone asked that we extend the protocol and these provisions to it. Given that the Government traditionally agree to such requests, we have tabled these amendments.

Extending this section of the Bill will grant the Isle of Man power to make regulations under clause 86. Alternatively, regulations made by the UK Government can be extended to apply to it with appropriate modifications. That would eliminate the need for the Isle of Man to legislate for itself, but it would still have the benefit of having the convention and protocol applying to it. I therefore urge the Committee to support the Government amendments.

Clause 86 will allow the United Kingdom to implement and ratify the Cape Town convention and the Luxembourg rail protocol, as they relate to railway rolling stock, via secondary legislation. The convention and the protocol aim to provide more security for creditors financing rolling stock by reducing the risk to those involved in such transactions and providing greater security over their interests.

The agreements establish an international legal framework for the creation and registration of international interests in rolling stock and make provision for legal remedies in the event of default or insolvency. Implementing the agreements will therefore make the UK a more attractive place for investors to hold financial interests in rolling stock with UK-based lenders, who will also be able to benefit from the protection of the protocol when they invest in overseas markets.

The UK signed the Luxembourg protocol in 2016. That power allows the UK to meet its international obligations, especially now that the protocol has come into force as a number of states have ratified it. These agreements are supported by the industry and I therefore commend the clause to the Committee.

[Jerome Mayhew]

As we have just heard, the Luxembourg protocol is designed to provide access to cheaper rolling stock in the UK and overseas, as finance can be secured and/or rolling stock leased from non-UK sources, and UK rolling stock companies can lease abroad at lower risk.

I learned an interesting fact over the weekend. I thought that this proposal would affect only ROSCOs operating in this country, but it actually affects the Government too. I learned that the Government own the freehold of one train in the UK, which is on the Canvey Island miniature railway in the constituency of my hon. Friend the Member for Castle Point (Rebecca Harris), who was very keen to point out to me that the Government have skin in the game on this clause. I have read that into the record, so I hope she is pleased with that.

We have no objections to the clause. As for Government amendments 201 and 202, which deal with the Isle of Man, I was slightly surprised by them. I am sorry to say that I have never visited the Isle of Man, so I had to do some research on its rail infrastructure, and it turns out that it is entirely heritage in nature, with Victorian rolling stock including a horse-drawn tramway. I would therefore be grateful if the Minister could explain why Victorian rolling stock and horse-drawn tramways need the benefit of the Cape Town convention and the Luxembourg protocol. I am sure that he has that at his fingertips.

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[Keir Mather]

I beg to move, That the clause be read a Second time.

The clause will ensure that network or station operators can recover the costs of removing a road vehicle that is causing disruption or presenting a safety risk on the railway. It applies in situations where a car or bicycle must be removed from an access road, level crossing or any other location that is critical to the safe operation of the railway or the movement of passengers around the network. Any recovery of costs must reflect the actual expenses incurred by the railway operator in resolving the obstruction.

Passengers should be able to use the railway without disruption caused by obstruction on railway land. Network or station operators must be able to ensure that such obstructions are removed promptly, and the cost of doing so should rightly fall on the person in charge of the road vehicle involved. I urge the Committee to support the new clause.

[Jerome Mayhew]

We have no objection in principle to the new clause, but, as we have learned to our cost as consumers in the similar approach taken to car parking charges and the removal of vehicles badly parked elsewhere, this will all come down to the operators contracted by GBR to undertake that function. It is merely asserted that the costs are related to those incurred in the removal, but we all know that such costs can be inflated by unscrupulous operators. Although we do not object to the new clause in principle, I would be grateful for the Minister’s assurance that reputable companies will be used and that this measure will not be used as a secondary source of income for GBR or its contractors.

[Keir Mather]

The shadow Minister is right to champion the interests of users of the railway and to ensure that the people who enforce such charges are scrupulous. Network and station operators, including GBR, will be required to use their judgment to determine whether the person responsible for a vehicle should bear the cost of removing the obstruction from railway land in the first place. I am happy to commit that we will engage closely to ensure that is done in a proportionate way that protects the interests of passengers and users of railway services.

By including this provision in the Bill, Parliament will have the opportunity to scrutinise and comment on the proposals. As part of that process, the shadow Minister is welcome to hold my feet to the fire to make sure that the interests of consumers are protected.

Question put and agreed to.

New clause 23 accordingly read a Second time, and added to the Bill.

New Clause 61

Transfer schemes made by Secretary of State

“(1) The Secretary of State may, for any purpose connected with railways or the provision of railway services, make one or more schemes for the transfer of property, rights and liabilities—

(a) from the Secretary of State, a government department or a company wholly owned by the Crown, to—

(i) Great British Railways,

(ii) a company wholly owned by Great British Railways,

(iii) a proposed GBR,

(iv) a company wholly owned by a proposed GBR, or

(v) a company jointly owned by two or more of the Secretary of State, the Scottish Ministers, the Welsh Ministers, Great British Railways and a proposed GBR;

(b) from Great British Railways, or a company wholly owned by Great British Railways, to—

(i) the Secretary of State,

(ii) a company wholly owned by the Crown,

(iii) a proposed GBR,

(iv) a company wholly owned by a proposed GBR, or

(v) a company jointly owned by two or more of the Secretary of State, the Scottish Ministers, the Welsh Ministers, Great British Railways and a proposed GBR;

(c) from a former GBR, or a company wholly owned by a former GBR, to—

(i) the Secretary of State,

(ii) a company wholly owned by the Crown,

(iii) Great British Railways,

(iv) a company wholly owned by Great British Railways,

(v) a company jointly owned by two or more of the Secretary of State, the Scottish Ministers, the Welsh Ministers and Great British Railways;

(d) from a company jointly owned by two or more of the Secretary of State, the Scottish Ministers, the Welsh Ministers, Great British Railways and a proposed GBR to—

(i) another such company,

(ii) Great British Railways,

(iii) a company wholly owned by Great British Railways,

(iv) a proposed GBR, or

(v) a company wholly owned by a proposed GBR;

(e) from the Secretary of State or a government department to a company wholly owned by the Crown, or vice versa.

(2) The Secretary of State must obtain the consent—

(a) of the Scottish Ministers before making a scheme that contains provision for the transfer of property, rights and liabilities to or from a company jointly owned by the Scottish Ministers and one or more other persons, and

(b) of the Welsh Ministers before making a scheme that contains provision for the transfer of property, rights and liabilities to or from a company jointly owned by the Welsh Ministers and one or more other persons.”—(Keir Mather.)

This new clause allows the Secretary of State to make schemes transferring property, rights and liabilities in connection with the designation of a body corporate as Great British Railways.

Brought up, and read the First time.

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[Keir Mather]

All the provisions in this group relate to transfer schemes. New clause 61 sets out the Secretary of State’s powers to make one or more transfer schemes to transfer property, rights and liabilities, including contracted employment between public entities. The new clause is important, as it will enable transfers to and from GBR. Transfer schemes are regularly used for highly complex transfers and can avoid undue delay and costs in getting the right assets into the right place at the right time.

Transfer schemes will provide a framework for the consistent treatment of workers, in line with Cabinet Office Statement of Practice on Staff Transfers in the Public Sector and Transfer of Undertakings (Protection of Employment) principles. GBR will bring together activities from more than 17 existing organisations, including Network Rail, the Rail Delivery Group, DfT Operator and 14 separate train operating companies, into a single organisation. It is therefore important that transfers be managed in the simplest, clearest and most efficient way possible to protect the staff involved and the taxpayers’ investment.

New schedule 1 provides further detail on transfer schemes. The schedule is important, as it sets out the scope of what may be included in a transfer scheme. This follows standard drafting practice and will prevent individual or piecemeal issues from slowing down the delivery of an integrated railway that better serves the public as a whole.

New clauses 62 and 63 will enable Scottish and Welsh Ministers to make one or more schemes for the transfers involved to enable GBR to run devolved services on their behalf. The provisions require the consent of the Secretary of State to protect their interests and the transfer of liabilities or assets in or out of GBR that they wholly own. The provisions also provide for Scottish and Welsh Ministers to make transfers between companies that they themselves wholly own. That will enable a smooth transition between delivery models for devolved services by devolved Governments. Such transfers would not require the consent of the Secretary of State, as they only involve companies owned by the Scottish or Welsh Ministers.

We have worked in partnership with the devolved Governments to ensure that they can share in the benefits of an integrated railway and, if they so choose, use GBR for the delivery of devolved railway services. These transfer scheme provisions reflect the approach that we have agreed with Scottish and Welsh Ministers.

New clause 65 will allow for the transfer of employment contracts from the ORR to the new passenger watchdog. The watchdog will take over most current ORR consumer roles, including the setting and oversight of standards. The new clause is important as it allows for the transfer of contracts of employment, provides protection for impacted ORR staff in line with TUPE principles, and will allow the watchdog to have the expertise that it needs to get up and running as soon as possible.

Finally, new clause 64 and amendment 263 make further provision for transfer schemes. New clause 64 introduces new schedule 1 and will allow transfers into GBR to begin before GBR is fully designated to allow for sensible operational preparation ahead of establishment. Amendment 263 is required to ensure consistency of terminology with other railways legislation and to ensure that the definitions of “wholly owned” and other similar wording are accurate and make sense in the context of previous Acts.

Taken together, the provisions are essential to ensure that GBR can be established quickly so that we can bring the benefits that we have promised to the public. They will allow the Government to minimise the cost of the transfer to the taxpayer and ensure that staff are protected. I commend them to the Committee.

[Jerome Mayhew]

I have nothing to add.

Question put and agreed to.

New clause 61 accordingly read a Second time, and added to the Bill.

New Clause 62

Transfer schemes made by Scottish Ministers

“(1) The Scottish Ministers may, for any purpose connected with railways or the provision of railway services, make one or more schemes for the transfer of property, rights and liabilities—

(a) from the Scottish Ministers, or a company wholly owned by the Scottish Ministers, to—

(i) Great British Railways,

(ii) a company wholly owned by Great British Railways,

(iii) a proposed GBR,

(iv) a company wholly owned by a proposed GBR, or

(v) a company jointly owned by two or more of the Scottish Ministers, the Secretary of State, Great British Railways and a proposed GBR;

(b) from Great British Railways, a company wholly owned by Great British Railways or a company jointly owned by the Scottish Ministers and Great British Railways to—

(i) the Scottish Ministers,

(ii) a company wholly owned by the Scottish Ministers,

(iii) a proposed GBR,

(iv) a company wholly owned by a proposed GBR, or

(v) a company jointly owned by the Scottish Ministers and a proposed GBR;

(c) from a former GBR, a company wholly owned by a former GBR or a company jointly owned by the Scottish Ministers and a former GBR, to—

(i) the Scottish Ministers,

(ii) a company wholly owned by the Scottish Ministers,

(iii) Great British Railways,

(iv) a company wholly owned by Great British Railways, or

(v) a company jointly owned by the Scottish Ministers and Great British Railways;

(d) from a company wholly owned by the Scottish Ministers to another company wholly owned by them;

(e) from the Scottish Ministers to a company wholly owned by them, or vice versa.

(2) The Scottish Ministers must obtain the Secretary of State’s consent before making a scheme under subsection (1)(a), (b) or (c).”—(Keir Mather.)

This new clause allows the Scottish Ministers to make schemes transferring property, rights and liabilities in connection with the designation of a body corporate as Great British Railways.

Brought up, read the First and Second time, and added to the Bill.

New Clause 63

Transfer schemes made by Welsh Ministers

“(1) The Welsh Ministers may, for any purpose connected with railways or the provision of railway services, make one or more schemes for the transfer of property, rights and liabilities—

(a) from the Welsh Ministers, or a company wholly owned by the Welsh Ministers, to—

(i) Great British Railways,

(ii) a company wholly owned by Great British Railways,

(iii) a proposed GBR,

(iv) a company wholly owned by a proposed GBR, or

(v) a company jointly owned by two or more of the Welsh Ministers, the Secretary of State, Great British Railways and a proposed GBR;

(b) from Great British Railways, a company wholly owned by Great British Railways or a company jointly owned by the Welsh Ministers and Great British Railways to—

(i) the Welsh Ministers,

(ii) a company wholly owned by the Welsh Ministers,

(iii) a proposed GBR,

(iv) a company wholly owned by a proposed GBR, or

(v) a company jointly owned by the Welsh Ministers and a proposed GBR;

(c) from a former GBR, or a company wholly owned by a former GBR, to—

(i) the Welsh Ministers,

(ii) a company wholly owned by the Welsh Ministers,

(iii) Great British Railways,

(iv) a company wholly owned by Great British Railways, or

(v) a company jointly owned by the Welsh Ministers and Great British Railways;

(d) from a company wholly owned by the Welsh Ministers to another company wholly owned by them;

(e) from the Welsh Ministers to a company wholly owned by the Welsh Ministers, or vice versa.

(2) The Welsh Ministers must obtain the Secretary of State’s consent before making a scheme under subsection (1)(a), (b) or (c).”—(Keir Mather.)

This new clause allows the Welsh Ministers to make schemes transferring property, rights and liabilities in connection with the designation of a body corporate as Great British Railways.

Brought up, read the First and Second time, and added to the Bill.

New Clause 64

Further provision about transfer schemes

“(1) Schedule (Transfer schemes) contains further provision about transfer schemes under sections (Transfer schemes made by Secretary of State), (Transfer schemes made by Scottish Ministers) and (Transfer schemes made by Welsh Ministers).

(2) In sections (Transfer schemes made by Secretary of State), (Transfer schemes made by Scottish Ministers) and (Transfer schemes made by Welsh Ministers) and Schedule (Transfer schemes)—

(a) ‘a former GBR’ means a body corporate formerly designated as Great British Railways under section 1;

(b) ‘a proposed GBR’ means a body corporate that the Secretary of State proposes to designate as Great British Railways under that section.”—(Keir Mather.)

This new clause makes supplementary provision about transfer schemes under new clauses NC61, NC62 and NC63.

Brought up, read the First and Second time, and added to the Bill.

New Clause 65

Transfer of staff to the Passengers’ Council

“(1) The Secretary of State may make one or more schemes under which persons who hold employment in the civil service of the State become employees of the Passengers’ Council (but this is subject to any provision contained in the scheme that allows a person to object to becoming an employee of the Council).

(2) A scheme made under this section—

(a) may make provision for giving full effect to a person’s transfer into the employment of the Passengers’ Council as a result of the scheme, and

(b) may (in particular) include provision that is the same as, or similar to, the provision made by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246).”—(Keir Mather.)

This new clause makes provision about transfers of staff from the civil service to the Passengers’ Council.

Brought up, read the First and Second time, and added to the Bill.

New Clause 1

Purpose of Great British Railways

“(1) The purpose of Great British Railways is defined by the following objectives—

(a) prioritising the needs of Great British Railways passengers in decision-making,

(b) delivering reliable, safe and accessible railway passenger services,

(c) providing value for money for passengers and taxpayers, including consideration of the affordability of fare prices,

(d) increasing passenger numbers and growing usage of the network year-on-year,

(e) expanding and improving the network, including services, connectivity, and restoring or adding routes,

(f) modernising working practices and innovating to improve productivity, efficiency, and passenger experience,

(g) supporting economic growth, national productivity and improving connections between towns, cities and employment centres,

(h) improving the experience of disabled and vulnerable passengers and ensuring consistent access to assistance,

(i) ensuring fair and transparent treatment of open access, freight and devolved operators when allocating access and charges,

(j) growing rail freight, including supporting delivery of the national freight growth target,

(k) strengthening the financial sustainability of the railways, reducing reliance on operating subsidy over time,

(l) integrating track and train, simplifying structures, and avoiding duplication, and

(m) supporting multimodal integration with buses, trams and local transport networks.

(2) The Secretary of State and Great British Railways must have regard to the purpose set out in subsection (1) in exercising their functions under this Act.”—(Jerome Mayhew.)

This new clause defines Great British Railways’ purpose.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

--- Later in debate ---

[Olly Glover]

Our new clause 11 would create a fund for future railway improvement, which would have multiple intentions. First, it would create a stable pipeline of enhancements in infrastructure for the years and perhaps even decades ahead, which the supply chain is so loudly clamouring for, given that the rail networks enhancements pipeline has not been updated for many years. During Transport Committee visits around the country, we talked to supply chain businesses. Many of them reported never feeling quite so despairing about the outlook for their trades given the uncertainty with railway investment and enhancements. The fund would also create hope for communities. It would create a mechanism for them to submit their ideas for consideration, so they form part of the pipeline.

In anticipation of the Government or the Conservatives accusing me of being fiscally reckless, careful observation of the wording highlights that the new clause does not stipulate an amount for what should go into the fund. That is for the Government of the day to decide, but the principle is clear: there should be a longer-term process and mechanism for local authorities and communities to get their ideas on the table.

What would the fund involve? The new clause would require the Secretary of State to create the fund, which could be for new or reopened railways or just stations. We would call it the tomorrow’s railway fund. Local and regional transport authorities would have the right to apply to the Secretary of State to receive a grant of monies from the fund. That could be simply to develop an idea to the next level or to implement construction of something that has already gained support. I look forward to hearing the Minister’s comments on that.

I would also be inclined to support the Conservatives’ new clause 35, which would explicitly intend to create a long-term pipeline project. As I have alluded, we think that is a good idea for our railway and our supply chain, and it is exactly the sort of thing that the Government should welcome, given their oft-stated but rarely implemented commitment to economic growth and getting our country moving.

[Jerome Mayhew]

I seek a bit of advice here, Sir Alec: I presume this is the right time to talk about new clause 35 as well.

[The Chair]

Yes.

[Jerome Mayhew]

Thank you, Sir Alec. On new clause 11, I hear what the hon. Member for Didcot and Wantage says about fiscal responsibility, but it seems a bit strange to set up a fund with no funds in it. Although, as Committee members have seen in the new clauses I have tabled, I support the principle of having a long-term approach to infrastructure development and investment in rolling stock and skills in this country, I cannot support the creation of a new fund without fully understanding where that money would come from.

[Olly Glover]

Given the shadow Minister’s criticism of the new clause, is he willing to condemn the previous Government’s restoring your railway fund for the same reasons?

[Jerome Mayhew]

The answer is no, because money was involved. A shining example of the restoring your railways project is the Northumberland line, which was created under and funded by the restoring your railways project, and which is now open and a great success.

New clause 35, which is in my name, is relatively long, and would require Great British Railways to create a long-term pipeline of infrastructure works. If our “Certainty of Funding” new clause is added to the Bill, new clause 35 would fit nicely with it. The new clause would provide more certainty to the supply chain, and would make provision for a visible pipeline of works, allowing for long-term investment in UK manufacturing, specialist engineering skills, apprenticeships and workforce development.

That would prevent the loss of specialist skills during funding gaps, which we heard much about in the oral evidence session. Not only that, but I have been lucky enough to be in my role for considerably over a year now, during which I have met many organisations related to the railway supply chain. One overwhelming piece of feedback I get is on the feast and famine we have with the relatively short control periods, and the lack of visibility on what the next control period will have. The new clause seeks to address one of our structural problems, supporting stable employment, rather than cyclical redundancies, and encourages suppliers to invest in new technologies and productivity improvements.

In the recent past, this country has not had a very good reputation for delivering large infrastructure works, and having the ability to carry them out quickly and cheaply. The new clause would help, meaning that when we say we will do something, we have a better chance of it actually happening.

[Keir Mather]

I thank the hon. Members for Didcot and Wantage and for Broadland and Fakenham for tabling the new clauses, which relate to enhancements on the rail network or the impacts of other projects on rail.

New clause 11 would establish a fund for future railway improvements. Local and regional transport authorities could then bid for funding from the pot for their local areas. I certainly share the support the hon. Member for Didcot and Wantage has for improving the railway across the whole country, and I believe that the railway can bring benefits to the places it serves. However, it should be for GBR, as the organisation run by experts and charged with running railways, to maintain close relationships with local and regional authorities, including the local commissioning of infrastructure projects where agreements can be reached.

The fund the hon. Member proposes risks removing GBR’s opportunity to organise, design and implement enhancements, which is a job that it is best placed to do, as the directing mind. Of course, GBR will engage closely with local and regional authorities when planning, and should invest where real benefits would be gained. Enhancements funding should continue to be set at the spending review; that is appropriate where projects are discretionary. GBR’s integrated business plan will ensure that enhancement projects align with operational delivery.

I also expect the publication of GBR’s integrated business plan to provide further transparency on the enhancements GBR plans to undertake, and the associated funding. That should help set the roadmap for the five-year funding period. I hope the hon. Member can agree that such decisions should be made by GBR, working with local authorities and with mind to the long-term rail strategy.

New clause 35 would establish a report on a long-term pipeline of infrastructure and rolling stock work, on a line-by-line or service-by-service basis, and with considerable detail on the specific timing, scope and sequencing of works over a 15-year period. I share the intention of the hon. Member for Broadland and Fakenham to create transparency around GBR’s spending, and certainty for the railway supply chain. We are already working to develop a long-term strategy for rolling stock and supporting infrastructure, such as electrification, that will provide clear direction for the supply chain. As I am sure he already knows, the Bill contains a duty for GBR to consider certainty for railway service providers. However, I disagree that this needs to be in statute and that a pipeline containing the level of detail proposed in this amendment, over 15 years, would be a good way of achieving the goals of transparency and certainty for GBR.

GBR will have a five-year integrated business plan, backed by five years of funding for infrastructure operations, maintenance and renewals. That has been established as the appropriate balance between long-term planning and the realities of a changing operational environment. Forecasting specific infrastructure works beyond five years becomes increasingly unreliable, potentially leading to instability for the supply chain and for GBR—the exact thing this amendment is trying to avoid. Enhancements funding will continue to be set at the spending review, while GBR’s integrated business plan will ensure that enhancement projects align with operational delivery. That ensures that larger projects have longer term certainty. The current process has resulted in £2 billion being invested in the railway network every year, from 2019 to 2024. I hope that the hon. Member for Broadland and Fakenham can understand that creating a stable long-term rail strategy and business planning environment will do more to achieve these aims.

Finally, I turn to new clause 71, which raises the importance of understanding rail impact when considering major infrastructure projects. I thank the hon. Member for Runnymede and Weybridge (Dr Spencer) for raising this issue, but I do not agree with it primarily because the matters that the amendment seeks to mandate are already comprehensively addressed in the existing statutory framework. Under the Planning Act 2008 and the National Policy Statements applying to Nationally Significant Infrastructure Projects in the transport, energy, waste and water sectors, the Secretary of State will consider requirements to mitigate adverse impacts on transport networks arising from any developments. For transport projects, promoters must provide detailed assessments of the impact of their proposals on transport networks, including rail capacity, demand and operational implications. These assessments are a routine and established part of the development consent order process, which the Secretary of State must consider. This amendment would introduce an entirely new statutory reporting step before an application could be examined, which would go against the Government's reforms to streamline the consenting regime following the Planning and Infrastructure Act 2025, which aims to make the system quicker and more efficient. Instead of adding value, this new requirement would instead risk adding delay in introducing uncertainty, which could hinder timely progress on Nationally Significant Infrastructure Projects. Having laid out the Government’s arguments to these amendments, I hope that hon. Members will see fit to withdraw them.

--- Later in debate ---

[Olly Glover]

I beg to move, That the clause be read a Second time.

New clause 21, in the name of my hon. Friend the Member for Newbury (Mr Dillon), would require a review of public road level crossings. It addresses similar themes to those raised by the new clauses in the name of the hon. Member for Runnymede and Weybridge that we have previously discussed.

We are seeking an annual review of high-delay level crossings, such as the one at Thatcham on what is known as the Berks and Hants line between Reading and Westbury and beyond. That is because we need to undertake proper analysis of the local economic cost and social impact caused by congestion, which admittedly is often necessary to facilitate railway services. It is sometimes perceived—whether the perception is accurate is another matter—that level crossing down times can be excessive. There may be opportunities to improve that, although ultimately to alleviate the local impact of the railway going through those communities, the high-delay level crossings would need to be replaced with an alternative means of crossing.

My hon. Friend the Member for Newbury and other signatories to the new clause are concerned about the wasted time and fuel resulting from long periods of idling traffic while the barriers are down, which can also lead to lost time for commuters, shoppers and business travellers. Road congestion across the UK is estimated to cost the economy tens of billions of pounds a year—some estimates exceed £30 billion—and high-impact level crossings are major contributors to local congestion hotspots, which can result in increased operating costs, particularly for commercial vehicles, such as delivery vans and lorries, and tradespeople. That, in turn, can reduce business productivity, leading to supply chain disruption, and can undermine labour productivity. Of course, there can also be a significant impact on emergency and public services.

The presence of a highly congested level crossing can act as a physical constraint on local planning. Local authorities are often unable to approve major housing or commercial developments that would increase local road traffic, as that would exacerbate the existing gridlock. That therefore stifles economic and housing growth. The Government have been very clear about their commitment to economic growth and highly ambitious housing targets that some consider to be undeliverable, so I hope that argument holds some weight with the Minister if none of the others do.

Let me say a bit more about Thatcham as a case study. Local reports and studies frequently say that the Thatcham level crossing is typically lowered for more than 30 minutes every hour at peak times, leading to significant congestion. The crossing is known as an MCB-CCTV. I have an ongoing commitment to waging war against acronyms, so let me say that that means a manually controlled barrier with CCTV monitoring. It is located on the busy Berks and Hants line, with approximately 133 trains per day passing over it. The line speed is high, at 100 mph—it is definitely an example of a railway that has benefited from full electrification—which requires the barriers to be lowered earlier than on slower lines, to allow sufficient warning time and ensure safe signal clearance.

Thatcham town council and West Berkshire council have formally acknowledged the serious traffic delays at the crossing. These delays have been specifically noted in the development of the local transport plan and the local plan review—the issue of the level crossing delays is identified as a critical factor that must be addressed and mitigated before any major new developments can proceed.

A study assessing the viability of replacing the level crossing with a new road bridge over the railway and canal estimated the cost to be in the region of £16.5 million, with that proposal ultimately declared not financially viable as a stand-alone public project. We do not intend to divide the Committee on the new clause, but we will be interested to hear the Minister’s comments on the issue that it highlights.

[Jerome Mayhew]

The Conservatives are very supportive of the intention behind the new clause. The replacement for Network Rail within GBR cannot bring the same, frankly uninterested, culture to these assessments that Network Rail is notorious for. I salute the tireless campaigning of my hon. Friend the Member for Runnymede and Weybridge, who has tabled a number of new clauses on this issue to highlight the problems that his constituents and, as we have just heard, many others have faced.

The hon. Member for Didcot and Wantage says that he will not press the new clause to a Division. I think that is sensible, given that the requirement for an annual review may well be too onerous, but we look to the Minister to acknowledge the problems faced by those communities that are cut in half by very impactful level crossings, and to provide assurances that the Government will address this significant concern.

[Keir Mather]

I thank the hon. Member for Didcot and Wantage for the new clause, which would require GBR to produce annual reports and technical studies relating to road crossings, with the aim of easing congestion. It is our view that the new clause would add highly disproportionate administrative and reporting burdens on to Great British Railways that we do not believe are necessary to manage level crossings and mitigate any of the impacts on communities that the shadow Minister and the hon. Member for Didcot and Wantage so powerfully described.

The new clause would require GBR to undertake an annual review of every public road level crossing in Britain, assessing the social and economic effects on each area, and would mandate feasibility and engineering studies for any site judged to have high levels of congestion. That would create a substantial and ongoing workload that would divert time, staff and funding away from the core functions of managing the railway, including by requiring GBR to develop proposals for engineering solutions even when there is no clear business case for intervention. That would increase costs, reduce flexibility and limit GBR’s ability to prioritise investment where it delivers the greatest benefits.

Network Rail has a statutory duty to minimise risks to the public and keep level crossings safe. I reassure the hon. Member that GBR will continue to be bound by those duties, while also taking full account of the wider economic and social impacts that level crossing down time can have on local communities. In support of that, as is the case now, GBR will be expected to keep level crossing operations under review, support continuous improvements in safety, and reduce unnecessary disruption so far as is reasonably practicable.

GBR will remain directly accountable to the Secretary of State and the Office of Rail and Road, the independent rail safety regulator on this work. As is the case now, effective consultation, robust evidence gathering and meaningful engagement with communities and local authorities will ensure that decisions are well informed and responsive to local needs. Through that approach, GBR will manage level crossings in a way that maintains high levels of safety for all users, reflects local priorities and is firmly grounded in evidence. I therefore urge the hon. Member to withdraw the motion.

--- Later in debate ---

Brought up, and read the First time.

[Jerome Mayhew]

I beg to move, That the clause be read a Second time.

[The Chair]

With this it will be convenient to discuss the following:

New clause 32—Working Practices and Productivity Modernisation Framework—

“(1) Within 12 months of the passing of this Act, the Secretary of State must publish a Working Practices and Modernisation Framework (“the Framework”).

(2) The Framework must include measures to—

(a) enable all passenger routes to be planned and delivered as a seven-day service, within the pay and conditions for standard working hours;

(b) enable drivers to operate train doors without additional payments in locations where this is not yet standard practice;

(c) require Great British Railways to establish a train driving school with updated training methods, with the purposes of reducing route-knowledge training times and increasing driver availability;

(d) end practices including—

(i) short-notice holiday approvals;

(ii) dependency on overtime to compensate for sickness absence or annual leave;

(iii) the prohibition on driving more than one journey over the same rails;

(e) introduce multi-disciplinary and flexible maintenance teams in GBR;

(f) support the adaptation of drone-based and digital inspection of railway infrastructure;

(g) prohibit unnecessary delays in introducing new rolling stock arising from route-learning requirements or working practices that exceed what is reasonably required for the safe operation of the railway, ensuring new fleets can deploy when manufactured;

(h) permit driver managers to drive trains when required;

(i) require maintenance and operational teams based in a specified areas to assist teams in neighbouring areas;

(j) prevent the Secretary of State from awarding general pay rises to any area of the rail workforce where—

(i) workforce productivity has fallen, or

(ii) where actions required in the Framework have not been implemented.

(3) Great British Railways has a duty to secure compliance with the Framework.

(4) Where the duty on Great British Railways under subsection (3) applies in respect of services which are run by any person other than Great British Railways, Great British Railways must fulfil the duty via access agreements with the person running those services.

(5) Within 12 months of this Act coming into force and within every subsequent 12 months, Great British Railways must publish an annual report on the measures in the Framework.

(6) Any report produced under subsection (5) must include—

(a) a summary of measures taken to reform the rail workforce as a result of provisions of the Framework;

(b) data on—

(i) workforce productivity,

(ii) cost savings,

(iii) changes in overtime expenditure, and

(iv) reasons for any delays in implementation of the provisions of the Framework.

(7) The Secretary of State must lay before Parliament a copy of any report produced under subsection (5).

(8) The Secretary of State may issue directions to Great British Railways under section 7 of this Act where, in the opinion of the Secretary of State, it has not met its duty under subsection (3).”

This new clause makes provision for a Working Practices and Productivity Modernisation Framework.

New clause 55—Mutual and co-operative structures—

“(1) Great British Railways must publish a report on the potential benefits to passenger railways services of mutual or co-operative corporate structures.

(2) The report under subsection (1) must consider the impact of mutual and co-operative corporate structures on employee engagement and governance.

(3) The report must be laid before each House of Parliament within six months of this Act being passed.”

This new clause requires GBR to explore and consider mutual and/or cooperative corporate structures with regards to employee engagement and governance.

[Jerome Mayhew]

New clause 31 seeks to reimpose minimum service levels. It would require the Secretary of State to make regulations to impose minimum service levels on passenger rail services, and for GBR to enforce them. The previous Government passed the Strikes (Minimum Service Levels: Passenger Railway Services) Regulations 2023, and the new clause essentially makes the railways subject to those regulations once more.

The purpose of the new clause is to reduce the impact of rail strike action on the ability of passengers to access their place of work and essential services, and to reduce the negative impacts on the wider economy, by setting minimum service levels—MSLs—for passenger rail during strikes. The intention is that the new clause will lead to an improved and more consistent level of service for passengers during rail strikes, when work notices are issued by employers to secure MSLs.

Public transport is critical for the everyday lives of citizens in Great Britain. The transport system supports all sectors of the economy and is a crucial enabler of economic growth. Rail is an important public transport mode as it enables passengers to make vital journeys, such as commuting to work or accessing essential services. Strike action on the passenger rail network can lead to disproportionate disruption to millions of people who rely on these services. A survey conducted by the Department for Transport in 2022 found that most rail users’ journeys were impacted by strike action, with some passengers reporting an adverse financial impact as a result.

Strike action usually takes place when there is a dispute between the employee and the employer, and the dispute cannot be resolved by other means. It is intended to cause disruption to the employer and, in some cases, the wider economy. Strike action in the rail sector, however, affects ordinary rail users, who are not party to the dispute. In December 2022, a report by the Centre for Economics and Business Research estimated that rail strikes between June ’22 and January ’23 would result in a loss of UK economic output of around £500 million due to people outside the rail sector not being able to work. Several sectors, including hospitality, have reported loss of revenue directly from the impact of rail strike action.

Government intervention is intended to mitigate disproportionate impacts of strike disruption on the railway, rail users and the wider economy. While the rail industry has put in place contingency plans to run a limited number of services during previous strike action, the level of service that it can deliver varies. Setting MSLs for passenger rail services will provide an important tool for employers to be able to deliver an overall improvement on the service levels that are typically seen during strike periods, and provide passengers with more certainty and consistency, which is just as important. This is intended to mitigate the adverse impacts of passenger rail strike action on users’ access to their place of work and to essential services, and the impact on the wider economy, while balancing that with the ability of workers to take strike action.

New clause 32, also in my name, would provide for a working practices and productivity modernisation framework. It would implement a number of provisions to make running GBR easier and more cost-effective for the Government and the taxpayer. Currently, there are a number of historical terms and conditions in train driver contracts that are outdated and allow drivers to hold their employers to ransom over pay. They make the railway inefficient to run and drivers slow to train, and end up costing taxpayers and fare payers more.

Let us look at some examples of improvements—this is a non-exhaustive list. We could get drivers to operate train doors without additional payments, and provide a train driving school with updated training methods to speed up route knowledge and training times. At the moment, it takes a lot less time to train a pilot to fly a jumbo jet from scratch than it takes to train a train driver. We could deal with the prohibition on driving more than one journey over the same rails, and introduce multidisciplinary flexible maintenance teams that support other local teams when needed. We could permit driver managers to drive trains when required, and link general pay rises to productivity gains.

All those examples, which are listed in the new clause, are eminently sensible improvements to the ability of GBR to run an effective, modern railway. Most people agree that having a seven-day timetable with a six-day roster is ridiculous, because it means that the Sunday service is voluntary. As a result, drivers are always paid overtime even though the service is part of the standard schedule. That does not happen anywhere else in the public or private sector. The new clause would mean that GBR could be run more cost-effectively. Many train companies have historical disputes with drivers over this issue, and have been unable to remove it from their trip terms and conditions as the drivers would simply go on strike. Now is a perfect time to change approach, with the full backing of the Government, in primary legislation. This wholesale reform of the railways is an opportunity for the Government to reset the terms and conditions for train operation.

As I have said, it is currently quicker to qualify to fly a commercial jet than to qualify to drive a train, and once a pilot has their licence they can fly almost anywhere in the world, while qualified train drivers are restricted to a specific route. We want to make it quicker and easier to become a train driver so that more people have access to the job. That is why the new clause legislates for GBR to establish a train driving school with updated methods. It would decrease dependency on overtime for sick days and for leave. GBR would be directly accountable to Parliament on the success of the framework, which we believe to be important.

[Olly Glover]

Let me say a couple of words on the shadow Minister’s new clauses. I entirely understand what he is trying to achieve and he asks some valid questions about the nature of industrial relations in the rail industry and how they are managed. I gently suggest, though, that the complexity of those things is perhaps greater than it might appear. This is not the place for me to share my extensive war stories of negotiating on a whole range of things with ASLEF, RMT and TSSA—the three main railway trade unions—but on that basis, my view is that these are exactly the sorts of things that are best left to GBR, with appropriate support and leadership from the Secretary of State.

Our new clause 55 is a different way of tackling a similar problem. It would require GBR to examine the benefits of mutual and co-operative structures and what they might be able to achieve. It is true that industrial relations in the rail industry are often fraught and subject to frayed tempers. As well as continuing constructive dialogue with the unions, are there other ways of looking at things? Perhaps we could draw on experiences both here and abroad, particularly in Germany, where mutual and co-operative structures, making sure that the worker has a voice on boards, and so on, can create a stronger footing for positive dialogue and secure employee buy-in to the wider objectives of the organisation. I look forward to hearing the Minister’s comments.

Leagrave Station: Step-free Access

Jerome Mayhew Excerpts

Monday 9th February 2026 Commons Chamber

[Sarah Owen (Luton North) (Lab)]

I must confess that this is my first Adjournment debate, and I am gutted that the hon. Member for Strangford (Jim Shannon) is not here to intervene. Is it an Adjournment debate if he has not done so? Probably not.

I wish I could carry on in that jovial tone, but unfortunately I cannot. We all hate being let down—frankly, I think many of us have been let down quite a lot this week—but especially when we are led to believe that a problem is about to be fixed, only to have the rug pulled from beneath our feet. Thousands of users of Leagrave station in my constituency felt a huge sigh of relief, and thousands more would-be users who currently cannot use the station felt hope, when they were told just before the election that we were successful in gaining Access for All funding for Leagrave station—the funding, which is vital for our needs as a community, was for lifts at the station—only to have this cruelly snatched away from us when we found out that there was no money for the scheme and there never had been. To put it bluntly, we were lied to as a community, but people in Luton North do not give up, and we want to know what the reasoning was for the lack of progression via the Access for All routes funding. When and how can we work with the new Government to make progress on securing lifts at Leagrave station?

Leagrave station is a major transport hub for our town. Nearly 1.5 million journeys are made to and from the station every year. I do not begrudge the stations that were approved for Access for All funding—I am very pleased for them. I would love to live in hope that, before I am entirely grey, we will see all stations in every community entirely accessible for all, but I do wonder why it is that many of those stations that were approved for funding actually have fewer journeys than Leagrave station.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

I am grateful to the hon. Lady for giving way. This is an important debate. If she has been following the proceedings of the Public Bill Committee for the Railways Bill, she will have heard that at the current rate it will take more than 100 years to get step-free access across the full estate. Does she agree with the Opposition in this instance that that is too long?

[Sarah Owen]

A rare occasion! I thank the hon. Gentleman for that intervention and yes, he is right, that is far too long. Not only will I be grey, but I will be dead, so progress is far too slow—[Interruption.]

Railways Bill (Tenth sitting)

Jerome Mayhew Excerpts

Tuesday 3rd February 2026 Public Bill Committees

[The Parliamentary Under-Secretary of State for Transport (Keir Mather)]

It is a pleasure to serve yet again under your chairship, Mrs Hobhouse. Clause 35 provides definitions for key terms used in chapter 1 of part 2, ensuring clarity and consistency in interpretation. I commend the clause to the Committee.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

I agree.

Question put and agreed to.

Clause 35 accordingly ordered to stand part of the Bill.

Clause 36

General duties of the Council

[Jerome Mayhew]

I beg to move amendment 63, in clause 36, page 19, line 35, after “of” insert

“all users, and potential users of the railways, including”.

This amendment ensures that the Passengers’ Council must have regard to the needs of all users, and potential users of the railway.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 64, in clause 36, page 20, line 2, leave out

“make efficient use of those funds”

and insert

“ensure value for money through a cost benefit analysis.”

This amendment would require the Passengers’ Council to consider value for money, rather than efficient use of public funds.

Clause stand part.

New clause 7—Purpose of the Passengers’ Council—

“The purpose of the Passengers’ Council is to—

(a) champion the interests of all users and potential users of the railway, including, in particular, the needs of disabled persons,

(b) advocate for the reliability of passenger services, covering punctuality, cancellations, short-forming, delays and the reliability of key connections,

(c) advocate for safety and security, covering safety incidents, security incidents affecting passengers, staff presence, and delivery of safety-critical maintenance,

(d) advocate for passengers’ comfort and on-board experience, covering cleanliness, the functioning of heating, air-conditioning, and lighting, overcrowding, the availability and performance of any internet connection or power sockets, and toilet facilities,

(e) advocate for affordability and value for money, covering fare levels, availability of discounted or flexible fares, transparency of fare information, and passenger perception of value for money, and

(f) advocate for passenger growth and network expansion, covering growth in passenger numbers, the number of communities served, service frequency, and the provision of new or restored services.”

This new clause would give a statutory purpose for the Passengers’ Council to champion the interests of all rail users.

[Jerome Mayhew]

Thank you, Mrs Hobhouse, for agreeing to chair this afternoon’s deliberations.

Here we are at clause 36, on the general duties of the passengers’ council. The clause requires the passengers’ council to consider the interests and needs of disabled persons when it exercises its rail functions. It also places a duty on the council to consider costs and the efficient use of public funds when it exercises its functions. That updates the council’s duty on value for money, which we can see in section 76(7) of the Railways Act 1993, and is consistent with the duty the Secretary of State, the Office of Rail and Road, Scottish and Welsh Ministers and Great British Railways will have if clause 18(2)(f) makes it into the final Act.

Clause 36(a), however, is silent on the general travelling public; it only mentions having particular regard to disabled persons. It seems like an odd omission for a provision on a passengers’ council to not mention passengers in the round. For the rest of the public, the council only has to

“keep under review matters affecting the interests of the public”,

under clause 37(1)(a).

The current drafting risks the creation, inadvertent I am sure, of a skewed body, directed to focus on disabled passengers and silent on the rest. I know that would not be the intention of the Ministry or anybody else in this Committee, but that is what the draft text would require of the council under its statutory obligations. It sits uneasily alongside clause 18(2)(a) on the general duties of Ministers, GBR and the ORR, which we all remember, and which frames disabled people within a wider body of all users, stating that it is to

“promote the interests of users and potential users of railway passenger services including, in particular, the needs of disabled persons”.

Why is different language being used? There is a difference, within the same draft text, between clause 18 and clause 36. The effect is to leave the passengers’ council operating statutorily on a narrower basis than GBR. The Minister will need to explain the intention behind that, because I do not believe it is intentional. If it is, he needs to explain why he wishes to constrain artificially the application of the passengers’ council to an area which is less wide than that covered by GBR, which it is meant to be monitoring.

[Joe Robertson (Isle of Wight East) (Con)]

I do not wish to interrupt the shadow Minister mid-flow, but I hope the Government will take on board his amendments and new clause. If they do not, perhaps they might like to amend the name of the passengers’ council to the “disabled passengers’ council”, because, in effect, that is the work it will be doing, so why not name it appropriately?

[Jerome Mayhew]

I am grateful for my hon. Friend’s intervention, although unfortunately he did interrupt my flow—though it was very kind of him to say that he did not want to in the process. He is quite right. Although I obviously love chucking half-bricks at the Government, I do not believe for a moment that there is a serious intention on the part of the Department for Transport to skew the passengers’ council in the way that the drafting currently requires. I am highlighting the provision in the best interests of improving the drafting of the Bill. I am sure the Minister will find a reason not to agree with me in a few minutes’ time, but I hope that he, or his officials, will go away and have a quiet look at it before the Bill reaches the House of Lords.

Subsection (b) provides only a duty to “take into account” the costs of recommendations. Surely, as legislators, we want the organisation to balance the public benefits against the likely costs—a cost-benefit analysis, essentially—and not just to consider costs to be met from public funds, because this also involves farebox income. Amendment 63 therefore

“ensures that the Passengers’ Council must have regard to the needs of all users, and potential users of the railway”,

preventing a skewed council with competing interests, borrowing the language used by the Government in clause 18.

Amendment 64 would require the passengers’ council to consider value for money through a cost-benefit analysis, rather than merely the “efficient use” of public funds, which is only half of the issue. There is a key difference here: value for money focuses on achieving the best balance of cost, quality and outcomes, whereas the good use of public funds also requires spending to be transparent, fair and aligned with the public interest and wider policy objectives. That makes this amendment important in achieving the lowest possible cost for the taxpayer.

New clause 7 would give the passengers’ council a statutory purpose to champion the interests of all railway users and potential users of the railway. The passengers’ council would advocate for the reliability of passenger services, for safety and security, and for passengers’ comfort and on-board experience, which we have discussed a number of times. It would also advocate for affordability and value for money, passenger growth and network expansion. It is important to have a clear set of directions for this new passengers’ council at its inception, and the new clause would help to provide that.

[Edward Argar (Melton and Syston) (Con)]

As ever, Mrs Hobhouse, it is a pleasure to serve under your chairmanship. I will speak primarily to amendment 63, as articulated, typically eloquently, by my hon. Friend the shadow Minister.

We have heard some extremely powerful interventions during the course of this Committee, particularly from the hon. Member for Bexleyheath and Crayford, about the importance of ensuring that the system—if I can call it that—genuinely recognises and is responsive to the needs of those who are disabled, have mobility issues, or face a whole range of things. He has made that case very powerfully, and I can understand what the Minister is seeking to do.

I suspect—although I do not wish to put words in his mouth—that the Minister will say that the amendment is unnecessary because it is inherent in the purposes of a passengers’ council that, of course, all passengers will be considered, and that the amendment simply draws out a particular aspect that must be highlighted. I can understand that. If that is the case, the Minister could accept this amendment without any adverse effects, and without any challenges to the drafting of the Bill or the integrity of what he is seeking to do with the clause, because the amendment emphasises that responsibility but does not lose sight of the particular needs of disabled people and others in the operation of the railway—I am sure the hon. Member for Bexleyheath and Crayford would make a point about the importance of that.

Looking at the amendment tabled by my hon. Friend the Member for Broadland and Fakenham, very little—if anything—would undermine the integrity or policy intent of what the Minister is seeking to achieve with the clause. It would simply draw it out and make it much clearer, and remind the passengers’ council, in explicit terms in the legislation, of what it is there to do. I hope that the Minister, in recognising the intent behind it, can move some way to meet my hon. Friend and I by potentially accepting the amendment, or at least, if he is not able to do so today, by committing to take it away and consider whether he might accept it at a later stage.

[Daniel Francis (Bexleyheath and Crayford) (Lab)]

It is a pleasure to serve under your chairship, Mrs Hobhouse.

I hear what was said about amendment 63, and I will wait to hear what the Minister says. I have sat on a passenger watchdog, although not this one, and worked in that role alongside Passenger Focus, as it was back then—it is now Transport Focus. I served as a member of the board of London TravelWatch, which is referred to as the London Transport Users Committee in the legislation, for four years, although that was a long time ago now. Many of the provisions we will see in later clauses are inherent in the aims and work of such organisations. Investigations, reports, representations and referrals come to the attention of the organisation from all passengers.

The amendment is not necessary. I did this work as a member of a board for four years, and chaired many meetings of sub-committees looking at some of that work, and, in the work of a watchdog, these issues are there, they are referred to the organisation and they are in the reports that are presented on behalf of all passengers.

[Jerome Mayhew]

The hon. Gentleman notes that clause 36 is about the general duties of the council. It sets out what the passengers’ council is for and those general duties. Does he not think that it is odd that the clause does not refer to passengers, other than one subclass of passengers? Would it not be better for the general duties of the passengers’ council to refer to all passengers?

[Daniel Francis]

If the hon. Gentleman looks at the clauses in the group, he will see that there are significant issues that the passengers’ council needs to take into account for all passengers, which come to the door and—as I know, having sat on a watchdog for four years—come in the form of casework and meetings. I am sure that I will talk later about why nationalisation, and having trains, signals and rolling stock under one operator, is much better for a passengers’ council, but those issues come to the organisation’s attention anyway.

I fully support the need to look at the issues for disabled passengers who come to the council’s door, and I will hear what the Minister has to say, but I believe that how things are investigated and brought to the organisation’s attention are set out in the legislation, just as they are, in many regards, for Transport Focus and for the London Transport Users Committee. I do not believe that the amendment is necessary.

--- Later in debate ---

New clause 7 seeks to put a purpose for the passenger watchdog into the Bill. In order to set up the new passenger watchdog as quickly as possible we are building it from the existing passenger watchdog Transport Focus—which has the legal name the Passengers’ Council and was established via the Railways Act 2005 as a multi-modal passenger watchdog. As well as rail, it will continue to cover bus, coach and tram passengers and some road users. Therefore, although I recognise the intent of the amendment, I do not think it is appropriate as it focuses on the purposes of the passengers’ council as they pertain to rail, when it has statutory functions for other modes. In addition, by setting out the areas of passenger interest the council will cover, it could have the unintended consequence of limiting those in the future.

[Jerome Mayhew]

The Minister has come up with an ingenious argument, but if he takes the trouble of actually reading the opening sentence of clause 36, he will find that it says, under “General duties”:

“When exercising its functions relating to railways and railway services”—

So, arguments about buses and other modes of transport are clearly outside the scope of this clause, are they not?

[Keir Mather]

But they are not outside the scope of the passenger watchdog as a whole. We would not want to be prescriptive in one place, only for us not to be able to make the passenger watchdog agile and adaptive in dealing with the needs of other modes. There could be unforeseen issues in which the passenger watchdog will need to represent passengers, or new developments, for instance those arising from new technology, where we would want the council to be able to advocate for passengers in the future.

The Bill already gives the council a purpose: via a combination of the functions and duties set out in the Bill and the Railways Act 2005, the council’s purpose and railways functions are set out sufficiently and are rightly broad.

Amendment 64 replaces the passenger watchdog’s duty to make efficient use of funds with a duty to consider value for money through a cost-benefit analysis. The revised duty being suggested by the shadow Minister and the duty in the Bill are to all intents and purposes the same. The watchdog will need to conduct some form of analysis to ensure it is making efficient use of funds when deciding which issues to investigate. Therefore, the amendment is duplicative and in my view unnecessary. With all this in mind, I urge the shadow Minister not to press these amendments.

Clause 36 places two general duties on the watchdog, which it must consider when carrying out its rail functions. The first is a duty to consider the interests and needs of disabled persons, which is designed to ensure that the watchdog will pay specific attention to the experiences of disabled passengers. The second is a duty to consider the costs and efficient use of public funds when it exercises its rail functions, which will ensure that the watchdog takes the overall cost of the railway into account when carrying out its functions—for example, when advising GBR or the Government. This will ensure that its recommendations are realistic and actionable, and therefore carry more weight in the industry. These duties will enable the watchdog to be an effective passenger champion, with the needs of disabled people at the heart of its priorities.

[Jerome Mayhew]

You will not be totally amazed to learn, Mrs Hobhouse, that I am not persuaded by the position that the Minister has taken. The obfuscation, chucking in other modes of transport when that is clearly excluded by the wording of the clause, does not persuade me and I wish to press both amendments to a vote.

Question put, That the amendment be made.

--- Later in debate ---

[The Chair]

We are now slightly out of sync because the Minister has responded before the shadow Minister could make the case. I remind Members to bob after I put the question, even if the amendment itself is not mentioned when I put the question. I know it is slightly difficult. I will call the shadow Minister, then the Minister will respond very briefly.

[Jerome Mayhew]

I would not want to prevent the Minister from agreeing with me at some length. We have a slightly odd grouping here, because amendments 208 and 209 would amend clause 36, but the other amendments in the group would amend clause 37—perhaps that is where we have gone wrong.

I will not really speak on amendments 208 and 209, because the Liberal Democrats spokesman has indicated that he will not push them to a vote. In so far as they guarantee representation for passenger groups on the passengers’ council, we support the direction of travel, but as they are not progressing further, I will not say more.

Clause 37 deals with keeping matters under review and collecting information. The Minister has already set out a précis of what the clause—

[The Chair]

Order. I am sorry to interrupt the shadow Minister, but you should be talking to amendments you have tabled, amendment 235 and new clause 22, but not clause 37 itself.

[Jerome Mayhew]

I understand where you are coming from, Mrs Hobhouse. The problem is that the amendments relate to clause 37, not clause 36, so it is inevitable that I have to describe the clause. I am not speaking to the clause, but explaining how my amendment fits within it.

[The Chair]

I understand.

[Jerome Mayhew]

I am not going to repeat what the clause does, but it establishes only a passive role. The council must “keep under review” and “make representations”, but it has no proactive duty to investigate or intervene. That is quite a big omission, and it contrasts with what the Minister said in answer to written parliamentary question 76652. The Minister gave an assurance that the new watchdog will deliver clear and robust oversight, but the co-operation duty is narrowly drawn, excluding wider consumer and accessibility organisations.

As drafted, the council lacks a clear purpose—in fact, it does not even have a purpose clause—and the practical tools needed to act as the strengthened passenger watchdog the Government have promised. Without a purpose clause, there is no direction as to what the council should be making representations about. Even the title of clause 37 is anodyne: “Keeping matters under review and collecting information” is hardly a strong description of a watchman for the interests of the passenger. Having kept matters “under review”, its only power is to “make representations”, which of course is meaningless.

The Urban Transport Group expressed similar concerns in its written evidence to the Transport Committee:

“The Bill must ensure that the Passengers Council exercise their powers in relation to GBR as they would any other operator and that these hold weight. It is not enough for GBR to only be held meaningfully to account by the Secretary of State, who has varying responsibilities outside of rail, and who may not have the time to investigate instances of poor performance to the relevant level of scrutiny.

Further consideration should be given to the explicit powers and levers the Passengers’ Council will have”—

they are going to split the infinitive—

“to meaningfully hold GBR to account on behalf of users.”

There is a risk that the passengers’ council will be just a busy talking shop, with no ability to effect change. As drafted, it rather feels like an afterthought. For example, there are no enforcement powers, save for referral to the Office of Rail and Road. Under clause 37(1), the council will have the authority to

“make representations to…such persons as they think appropriate”

on

“matters affecting the interests of the public”.

In reality, that will mainly be to the Secretary of State and GBR, but there is no corresponding duty for either the Secretary of State or GBR to respond in any way to those representations. Consider that for a moment: there is a duty to make representations, and no duty to respond at all. It could not be more toothless if it tried.

Amendment 65, in my name, would go a modest way to rectifying the toothlessness of this representative body. It would simply require the Secretary of State and Great British Railways to respond to any representations the passengers’ council makes under this clause. Surely members of this Committee and the Government would agree that that is a reasonable expectation for the passengers’ council and the passengers it represents.

Amendment 235, in the name of the hon. Member for Didcot and Wantage, would require the passengers’ council to assess levels of satisfaction with public passenger railway services and report these in a manner that enables GBR to fulfil its functions. Any amendment, and this is one of them, that ensures greater transparency and therefore a better service from this organisation—

[Olly Glover (Didcot and Wantage) (LD)]

If the shadow Minister is talking about 235, that is one that he tabled, not me.

[Jerome Mayhew]

No wonder I agree with it so strongly. I put “LD” by it, but that is being unduly generous to the Liberal Democrats. It is an excellent amendment. As I was concluding, it would ensure greater transparency and, therefore, a better service from this organisation, so I have no hesitation in supporting amendment 235 and I hope that the Liberal Democrats join me in doing so.

[Keir Mather]

The Committee will be glad to hear that I do not intend to re-rehearse the argument that I pre-emptively set out in response to the amendments. On the broader point made by the hon. Member for Broadland and Fakenham about the passenger watchdog and its capabilities, I am of the view that having independent monitoring powers for the passenger experience, having investigation powers, having the ability to demand information by a deadline, enforcing an independent dispute resolution service, and making sure that minimum consumer standards are protected with the ability to escalate to the ORR for enforcement is a suite of measures that will allow the watchdog to fully account for the passenger experience. That relates both to this clause and ones that I am sure we will arrive at in short order. On that basis, I urge the hon. Member for West Dorset to withdraw his amendment.

--- Later in debate ---

[Jerome Mayhew]

I am not going to reheat the discussions that we have already enjoyed on clause 37, and clause 38 simply replicates the 1993 Act. We are happy for the clauses to proceed without amendment.

Question put and agreed to.

Clause 37 accordingly ordered to stand part of the Bill.

Clause 38 ordered to stand part of the Bill.

Clause 39

Investigations

[Olly Glover]

I beg to move amendment 142, in clause 39, page 21, line 19, at end insert—

“(1A) The Passengers’ Council must not investigate a matter unless the matter has been considered first by Great British Railways and is subject to an appeal for further consideration.”

This amendment makes Great British Railways the first stage of a complaint submitted, with the Passenger Standards Council the appellant body should the complainant not be satisfied by the response from Great British Railways.

[Olly Glover]

I can be very concise, Mrs Hobhouse. We consider the provisions on the passengers’ council to be among the stronger components of the Bill. Some sound thinking is involved.

Amendment 142 is a very basic amendment that aims simply to reduce red tape and bureaucracy. All it would do is ensure that when a complaint is submitted, the first stage is for GBR to look at it. It will be a GBR issue, because GBR is going to run everything. If the appellant body is not satisfied with the response from GBR, the complaint can by all means go to the passengers’ council for investigation.

If the complaint goes first to the passengers’ council, what will happen in pretty much every case is that the council will have to go to GBR to find out the facts. How else will it know them? I hope that the amendment is uncontentious, but if the Minister does not agree I am sure he will give a typically eloquent explanation.

[Jerome Mayhew]

The clause sets out the circumstances in which the passengers’ council must—that is “must”, not “may”—investigate matters relating to railway passenger services or station services. I could provide a long description of the clause, but I will leave that to the Minister, who I know will want to explain it to the Committee.

Essentially, the Bill largely lifts the current framework into the GBR model, so I can see why no amendment would be needed, although Ministers should clarify how the national and London watchdogs will co-ordinate on cross-boundary issues. I will be grateful for an explanation of how the Minister will undertake the balancing act between GBR and the London Transport Users Committee.

There is, however, a big issue with the current wording of the clause. It requires the council actively to

“investigate any matter relating to the provision of railway passenger services”

put to it by members of the public, as well as others. That sounds great, but from a practical perspective, there are 1.75 billion passenger journeys each year. The potential issues with the service that passengers receive will run into the tens of thousands every year, yet the drafting of the clause will impose a legal duty on the passengers’ council to investigate every single one of them, unless they are “frivolous or vexatious”.

“Frivolous” and “vexatious” are legal terms. To demonstrate that something is vexatious is a very high bar for the passengers’ council: it would typically have to provide evidence of multiple previous complaints on a similar subject that came to nothing. That is what “vexatious” means, and “frivolous” is not far off it. The Minister, perhaps unwittingly, is creating an enormous a legal duty and a vast workstream for the host organisation that is becoming the passengers’ council, which has fewer than 30 members of staff.

[Edward Morello]

I wonder whether the shadow Minister’s line of argument actually supports the Liberal Democrat amendment. The vast majority of those claims could be resolved by GBR via a repayment or penalty, without ever getting to the passengers’ council in the first place.

[Jerome Mayhew]

The hon. Member is absolutely right that there is a sequence of complaint. Before going to an external body, one would typically be expected to have exhausted the internal complaints procedure of the organisation against which one is complaining. It would be perfectly reasonable for the passenger watchdog’s first questions to be, “Have you complained to GBR? If so, what did it say?” In fact, that might be its working definition of frivolousness: going straight to the watchdog without having made a complaint.

I warn the Minister that the current wording is an open chequebook. It could lead to a huge amount of work for an organisation that is not currently set up to deal with it, and which would require significant funds from somewhere to do so. What assessment of demand has been undertaken for council investigation powers? What budget has been earmarked for the huge increase in workload? Transport Focus, the host organisation, currently has fewer than 30 staff—I speak from memory and stand to be corrected, but when I visited there were something like 22 staff. To what size does the Minister anticipate expanding Transport Focus or the new passenger watchdog?

Amendment 142 would make GBR the first stage of a complaint submitted, with the passenger standards council as the appellant body should the complaint not be satisfied by the response from Great British Railways. I doubt whether it needs an amendment to primary legislation, but it would be the right sequence for any complainant to exhaust the in-house complaints procedure first. Does the Minister not mean the passengers’ council to have the authority to pick and choose its investigations? If he does not, he should stick with the current wording; if he does, he should think again.

[Keir Mather]

The shadow Minister asked about the interaction between Transport Focus and London TravelWatch in instances in which cross-border services might need active deliberation between the two organisations. They currently operate under a memorandum of understanding, and I understand that they are planning to update it when the Bill becomes more mature, which will allow them to develop a consistent framework for dealing with cross-border issues. Where a case is under investigation and is fully within the London railway area, it falls within the remit of London TravelWatch: rightly, the passenger watchdog must refer the case to London TravelWatch as the independent expert on travel in the London area.

The shadow Minister also asked some operational questions about the passenger watchdog’s budgetary planning and the size of its staff. Those matters will be actively developed later in the process, once we have set the legislative foundation for the organisation to be created.

The shadow Minister made a fair point about the principle of investigation, but intensive investigations are one thing, and the ability to have regard to complaints that are not vexatious is quite another.

[Jerome Mayhew]

That is all very well, but it is not the wording of the Bill. The text does not say “have regard to”; it is a mandatory requirement to investigate every single allegation. I totally understand where the Minister says he is coming from, but unfortunately his Bill does not agree with him.

[Keir Mather]

My point is that the shadow Minister’s interpretation of the term “investigation” might diverge slightly from mine in respect of what we expect the passenger watchdog to do in relation to each individual complaint that it may receive, and especially to those that are vexatious or frivolous.

On the broader point, I thank the hon. Member for Didcot and Wantage for his amendment, which would require the passenger watchdog to wait until GBR has considered an issue before investigating it itself. He is right to point out that individual passenger complaints should go to operators, including GBR, in the first instance. If the passenger is unable to get a satisfactory resolution to their complaint, they can raise the issue with the watchdog through the service provided by the rail ombudsman for independent dispute resolution. As the amendment suggests, that is a very sensible process.

However, there are times when the watchdog will need to investigate issues before or instead of operators. For example, if an issue falls outside the scope of the ombudsman service, or if the issue is systemic and persistent and cannot be appropriately dealt with by a single operator, the watchdog may decide to open its own investigation.

We expect the watchdog to actively investigate a wide range of issues beyond individual passenger complaints and GBR services. They could include systemic or cross-industry issues in the provision of passenger assistance, such as the issues that we have unfortunately seen on the railway in the past, or persistent issues with punctuality, open access or devolved services. The amendment is therefore not appropriate, as it would unnecessarily restrict the watchdog’s ability to act freely on behalf of the passenger. I do not support restricting in legislation which issues the watchdog can investigate.

--- Later in debate ---

[Jerome Mayhew]

I recognise that the Minister has his line to take and that there will be lots of angry people sitting behind him at tea time if he makes any concessions. However, a simple amendment to the wording of the mandatory requirement in clause 39(1), paragraphs (a) to (e), would give the passenger watchdog the ability to pick and choose. Changing “or” to “and” at the end of paragraph (d), before

“it appears to the Council that the matter is one that the Council ought to investigate”,

would surely provide the flexibility that everyone probably thinks is necessary.

[Keir Mather]

I will happily let the shadow Minister intervene again, because I would like to seek clarity on how inserting “and” would allow the watchdog to choose whether it has to investigate something in the first instance.

[Jerome Mayhew]

In the wording of clause 39(1), at the moment paragraphs (a) to (e) are additional. If the “or” in

“or…it appears to the Council”

at the end of paragraph (d) were replaced with “and”, there would be a two-part test. The council would receive complaints from all the kinds of people in paragraphs (a) to (d), and the second part of the test would be that

“it appears to the Council that the matter is one that the Council ought to investigate.”

That would give agency to the council to monitor and choose the most important things for it to investigate.

[Keir Mather]

I see.

[The Chair]

I remind the Minister that this is not part of the amendment that has been proposed. Could he therefore wind up? The shadow Minister is welcome to table a new amendment, but his proposal is not relevant to this afternoon’s discussion.

[Jerome Mayhew]

I was just trying to be helpful.

[Keir Mather]

I thank the shadow Minister for his contribution. Perhaps, in slower time, he can walk me through each specific provision and we can come to a determination as to the intent that he outlined, but for the moment—at your discretion, Mrs Hobhouse—I will proceed with the matter at hand.

I do not support restricting in legislation which issues the watchdog can investigate. The watchdog will already be working closely with GBR to ensure that GBR can respond to its own passenger issues effectively and according to best practice and will not duplicate investigations unless it is necessary to do so. I therefore urge the hon. Member for Didcot and Wantage to withdraw amendment 142.

Clause 39 will enable the passenger watchdog to investigate matters relating to railway passenger services or station services. The clause places a duty on the watchdog to conduct investigations in certain circumstances. For example, the watchdog must investigate any matters referred to it by passengers, potential passengers or organisations representing passengers provided that the matters are not vexatious. It must also investigate any issues referred to it by the Secretary of State, Scottish and Welsh Ministers or the ORR, and anything that it appears to the watchdog that it ought to investigate.

If the matters fall wholly within the London railway area, the passenger watchdog must refer it to the London Transport Users Committee. Transport Focus, the body out of which the watchdog will be built, has a duty to investigate matters referred to it, but the clause expands the list of people who may refer cases for investigation, to reflect the central role of the watchdog, its role in the reformed railway and the importance of passenger experience to this Government.

[Olly Glover]

I hear what the Minister says. I still think that the logical wording of the clause could be ameliorated, but I shall leave that to the Government and spare the Committee a Division. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 39 ordered to stand part of the Bill.

Clause 40

Power to obtain information

[Jerome Mayhew]

I beg to move amendment 66, in clause 40, page 22, line 11, leave out subsections (5)(a) and (5)(b) and insert

“the Passengers’ Council may take such action (if any) as it thinks appropriate.”

This amendment would give the Passengers’ Council enforcement powers when its requests for information are not met.

[The Chair]

With this it will be convenient to discuss the following:

Clause stand part.

Clause 41 stand part.

[Jerome Mayhew]

It is much easier when I start with the amendment, because then I know where I am. This clause is about the power to obtain information. I will leave it to the Minister to give a précis, but it seeks to create a sensible power for the passengers’ council to be able to require the provision of information. However, the council has no power to compel compliance—it may only refer the matter further, to the Office of Rail and Road—so we begin to get into one of the problems with the passengers’ council, which is that it has no enforcement powers at all. Any teeth that are associated with the works of the passengers’ council come only from the economic regulator, soon to be just the safety regulator: the ORR. That will lead to some serious problems.

There is no proposal to require the ORR, as a regulating body with no enforcement powers, to take the preparatory work of the passengers’ council as automatically worthy of acceptance without reinvestigation. That is quite a serious point, because when an investigation undertaken by the passengers’ council comes to a roadblock that it feels requires some kind of enforcement action, it has to go to a separate body, the Office of Rail and Road, because the Government do not intend to give the council any real powers of its own. The ORR, as an independent regulator and enforcement body, then has to start the investigation de novo. It has no ability to take as read the investigation work of the passengers’ council.

That will create the bizarre situation of the ORR having to reinvestigate as an enforcing body, which is a quasi-judicial function, and then come to a decision every single time the passengers’ council refers any matter to it. Surely the Minister can do better than that, with all the resources of his many civil servants and drafting professionals in the Department. That messy process will lead to delay and uncertain enforcement—hardly the stuff of empowering passengers.

I fear that those on the Treasury Bench have asserted that the watchdog will be a nightwatchman, but the Department has granted it no enforcement powers or powers to compel. That will be bitterly disappointing to many rail passenger groups and advocates. When an issue arises and the council begins an investigation, it will inevitably require information. If it is unable to get that information, it must ask the ORR to step in and take over. We heard a lot about that in evidence to the Transport Committee. For example, Emma Vogelmann of Transport for All said:

“In terms of the watchdog itself, I have briefly touched on this already, but we feel very much that the passengers’ council really needs to be given enforcement powers to be able to take proper action on cases that are involving accessibility breaches. In cases where things do get referred up to the ORR, we would like there to be a statutory duty on them to act on those referrals made by the passengers’ council, and to have those outcomes within a clear timeframe.”

Another point she makes is that the ORR does not have to do anything. The passengers’ council can refer a matter to the ORR, but the ORR can say, “We’re busy, thank you, and we don’t think it is important.” It has no obligation to act.

--- Later in debate ---

[Keir Mather]

I turn first to the shadow Minister’s point about either diffusing enforcement capabilities between the ORR and the passenger watchdog or seeking to double them up as part of legislation that is designed to rationalise and simplify notions of accountability and enforcement within the railway. Under the system outlined in the Bill, the ORR can use the findings of the watchdog; the watchdog just has to make its own assessment of the materials given to it by the ORR. In my view, that does not constitute the same thing as reinvestigating a matter. The intention is for the ORR to be made aware of the passenger watchdog’s work at every step toward referral by the watchdog itself. There is therefore a low risk of the ORR having to retake steps, given that it is actively consulted as that process unfolds.

I will now speak directly to amendment 66 and clauses 40 and 41. As the shadow Minister has outlined, amendment 66 would give the passenger watchdog enforcement powers when its requests for information were not met. The Government are creating a strong passenger watchdog that will have powers to monitor passenger experience, and to hold GBR and others to account. Although it will not have full enforcement powers, it will be able to demand information from operators to a deadline, investigate problems, demand improvement plans and refer cases for enforcement action to the ORR. It is important to have one clear enforcement body for the entire sector to avoid duplication or confusion for industry. If there were two bodies with enforcement powers, the risk of conflicting enforcement steers creating additional bureaucracy would be too high.

The ORR will therefore enforce GBR’s new streamlined licence, ensuring that the organisation meets its industry obligations and all minimum standards, including passenger standards. As it does today, the ORR will enforce all other railway licences to ensure that there is an independent, consistent enforcement body for the sector. We expect our licence proposals to include a condition requiring operators to co-operate with the passenger watchdog. That will help to ensure that other licensed operators co-operate with requests from the watchdog. That type of provision is typically found in operator licences. For example, there is a similar requirement for operators to co-operate with Transport Focus today. For those reasons, the amendment is not necessary.

Turning to clauses 40 and 41, clause 40 gives the passenger watchdog the power to request the necessary information to effectively carry out investigations into issues affecting passengers. That information could be requested from train or station operators including, of course, GBR. The information must be provided to the watchdog within a reasonable timeframe, unless the person did not have, or could not reasonably obtain, the information. If the watchdog did not receive a satisfactory response to its information request, it could refer the matter to the ORR, which will continue to act as the enforcement body for the rail sector. The watchdog’s power to request information from operators to a deadline is a new one, demonstrating the Government’s commitment to a strong passenger champion that can make an impact on the railway. That will ensure that the watchdog can carry out its investigations effectively and in a timely manner.

Clause 41 protects any information where the person who provided the information has requested that it be held in confidence. That will ensure that confidential or sensitive information is not published or disclosed by the watchdog, with some sensible exceptions such as ensuring that the watchdog can refer the matter to the ORR for enforcement and that relevant law is complied with. Clause 41 also ensures that information held by a rail operator that may help an investigation but is sensitive or confidential—due to its commercial nature, for example—will not be published in any investigation reports. That will encourage operators to share information and ensure that the watchdog can carry out any investigation effectively while protecting confidential information.

[Jerome Mayhew]

The Minister’s argument is clearly—is it parliamentary to say nonsense? I hope it is. His argument, that the industry will be confused if the passengers’ council is able to enforce its own deliberations, is ridiculous; he just has to think about it. The ORR has its areas of competence on which it enforces, and the passengers’ council has its areas of competence; they are discrete. Where confusion might really arise is if the passengers’ council thinks it is trying to get information and is stymied by the ORR taking a different view, which is the position the Minister has put forward. I have no hesitation in pushing the amendment to a vote.

Question put, That the amendment be made.

--- Later in debate ---

Representations and referrals

[Jerome Mayhew]

I beg to move amendment 67, in clause 42, page 23, line 7, leave out subsection (2).

[The Chair]

With this it will be convenient to discuss the following:

Amendment 68, in clause 42, page 23, line 17, leave out subsection (3)(b)(ii).

This amendment would require the ORR to take action where a contravention has been referred to it.

Clause stand part.

[Jerome Mayhew]

The amendments relate to clause 42, so I will explain what that clause seeks to achieve. Its title is “Representations and referrals”, and its focus is on introducing a power so that

“the Passengers’ Council may make representations to such persons as it thinks appropriate for the purpose”,

such as train or station operators, to resolve a matter under investigation.

If the passengers’ council believes that an operator

“is contravening, or likely to contravene”

its licence obligations, it must either engage with the operator directly, as we will discuss further when we consider clause 47, and/or refer the matter to the ORR and notify the Secretary of State. There are various other things that clause 42 does, but those are the main things.

The clause makes it clear that even after a passengers’ council investigation has identified a licence breach, the ORR retains complete discretion on whether or not to act. Once again, that will create a two-stage process in which the council must refer breaches that it cannot resolve itself, but the body receiving the referral is not obliged to act on it, or to intervene. Therefore, the watchdog investigates, but only the ORR can enforce, which it can choose not to do. That structure falls way short of the supposed strengthened passenger accountability model described by Ministers, and it serves only to risk causing prolonged delays for passengers who face ongoing harm, to the extent that a licence provision is breached, without a guaranteed remedy.

Thus far, we have not seen a clear rationale as to why the Government would create a watchdog only for it not to have any enforcement powers. It prompts the question: “What’s the point?” Evidence to the Transport Committee was very clear—the passengers’ council needs to have enforcement powers of its own to do the job envisaged for it. At the very least, if the ORR is to remain the enforcement body, there should not be a weeding process between the decisions of the passengers’ council and the ORR; the ORR should at least get on and enforce. That is what amendments 67 and 68 would achieve, by requiring the ORR to take action when a contravention had been referred to it.

[Keir Mather]

I thank the hon. Member for the amendments, which would require the ORR to take action in the event of a referral from the passenger watchdog.

First, I will point out that enforcement actions by the ORR are not the only way in which problems can be solved. The Bill gives the watchdog the power to request improvement plans, to allow operators to explain their planned improvements and agree them with the watchdog before issues are referred to the ORR for potential enforcement action. That is likely to be a faster way to get improvements for passengers than going straight to enforcement action.

I appreciate the intention behind the amendments, which is to ensure that the watchdog will be listened to; it is an intention that the Government support. However, it is also important that the ORR, as the sector regulator, is able to take a broader view before deciding whether enforcement action is appropriate. That is because the passenger watchdog is only a passenger champion—it has a sole focus—and, by comparison, the ORR is the regulator for the whole sector and has to take into account a wide range of matters. If that were not the case, enforcement decisions could be taken that were good for the passenger but had a negative impact on the network as a whole. Each time that the ORR makes a decision, it must transparently explain its rationale to the watchdog on that basis. Therefore, in our view these amendments are unnecessary and I urge the hon. Member to withdraw them.

Clause 42 will give the passenger watchdog the power to:

“make representations to such persons as it thinks appropriate”,

in order to resolve a matter under investigation. If the watchdog believes that an operator is currently

“contravening, or likely to contravene”

its licence obligations, it must either engage with the operator directly to request an improvement plan or refer the matter to the ORR and inform the Secretary of State that it has done so.

If the case is referred to the ORR, the ORR can choose whether to take enforcement action or not. It must then inform the watchdog and the Secretary of State of its decision. That will ensure that the watchdog can act independently to resolve problems through engagement with operators and by directly engaging with the ORR when necessary. Without clause 42, the watchdog would not be able to effectively resolve matters that it had investigated and follow up on them. I commend the clause to the Committee.

[Jerome Mayhew]

I am not persuaded by the Minister. There are two amendments. In order to save time, I will press the first one to a Division, and the outcome of that will determine whether or not I press the second one to a Division.

Question put, That the amendment be made.

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[Daniel Francis]

I do not think this provision needs to be on the face of the Bill. These issues already exist; there are examples where the passenger watchdog and the Transport Committee would be looking at the same matter. There would be examples with other Departments where an ombudsman would also be looking at something in a similar vein to a Select Committee. My view is that it would be an overly bureaucratic system. Passenger watchdogs issue many reports, and some are on very serious matters, but sometimes they need to issue a report that is not at that level, and I do not believe these amendments are necessary.

[Jerome Mayhew]

Under clause 43, the passengers’ council can prepare, send and publish a report of its findings in an investigation, but it must obtain the Secretary of State’s consent before sending or publishing a report if the investigation was undertaken following a referral. Similar provisions exist for the Scottish and Welsh Ministers. The wording of subsection (3) makes publication discretionary even after a full investigation and subsection (4) requires ministerial consent before publishing any report arising from a referral.

As the explanatory notes confirm, that structure gives Ministers an effective veto over publication. Why should the Minister have a veto over publication when the organisation being investigated is their own creation? If the state has created a toothless investigation watchdog body that, despite its lack of enforcement powers, has managed to do an investigation, write a report that is no doubt critical of the state, GBR or perhaps even the Secretary of State and the Department for Transport, the Secretary of State, or the Scottish or Welsh Minister can, for whatever reason they like, veto its publication. They can muzzle the watchdog at whim.

That risks undermining the whole process—where is the transparency?—and weakens the credibility of the new watchdog. If the aim is to strengthen passenger oversight, investigation reports should be published as a matter of course, with only narrowly defined exemptions for confidentiality or commercial reasons. Transport for All explains in its written evidence to the Transport Committee how that will affect passengers:

“Clauses 42-47 empower the Passengers’ Council to receive complaints, investigate issues, and identify potential breaches of licence conditions. However, the Council has no power to compel corrective action, issue penalties, or enforce compliance. If it identifies significant accessibility failings, it must refer the matter to the ORR, which retains full discretion over whether to investigate or take enforcement action.

Disabled passengers already face disproportionate obstacles when raising complaints, and this indirect model appears to add another layer of bureaucracy without increasing accountability. We worry that it will create further delays, weaken enforcement, confuse passengers, and result in inconsistent redress. A watchdog without enforcement powers is fundamentally limited in its capacity to protect passengers’ rights or drive accessibility improvements.”

Amendment 69 requires the passengers’ council to publish any report on a matter investigated under clause 39. That will create greater transparency and accountability in the new watchdog. Frankly, if the Government are serious about supporting the rights of passengers, rather than designing in an ability to hide embarrassing conclusions, they must support this amendment.

Amendment 70 would require the passengers’ council to publish its report within six months of completing the investigation. Having in statute a specific timeframe in which a report must be published would create a sense of urgency, or at least of purpose, and a culture would develop within the organisation that placed high importance on those reports—exactly as it should.

Amendments 138, tabled in the name of the Liberal Democrats—presumably the hon. Member for Didcot and Wantage—would require the passenger’s council to prepare a report of findings after an investigation and ensure that any report is laid before Parliament. It is another attempt to strengthen the reporting requirements from a different angle and should be supported because it is seeking to achieve a similar outcome to my own amendments.

Amendment 140, also in the name of the hon. Member,

“removes the requirement that the Passengers’ Council must obtain the Secretary of State’s consent before sending or publishing a report if the investigation resulted from a referral by the Secretary of State”.

Amendment 69 is a mandatory requirement that they must publish every report. If that is not acceptable to the Government for whatever reason, then amendment 140 is a slight variation on the theme in that it takes the discretion away from the Secretary of State and leaves it where it properly lies, if there is to be discretion: with the passenger watchdog. That body, surely, having undertaken the investigation, written the report and come to a conclusion, are best placed to decide whether it is in the public interest to publish, not the owner of the nationalised industry that is being investigated.

[Keir Mather]

I thank hon. Members for these amendments, which all relate to the passenger watchdog’s investigation reports. I will begin with amendments 138 and 69, which both require the watchdog to publish its investigation reports. Amendment 138 also requires the watchdog to lay the reports before Parliament.

First, I would like to reassure the Committee that the passenger watchdog will routinely publish reports of all its investigations. The watchdog also has an obligation under the Railways Act 2005 to prepare a report of its activities at the end of each financial year, which the Secretary of State must lay before Parliament. That obligation will remain unchanged and will ensure there is transparency and parliamentary scrutiny around the watchdog’s activities.

However, it is worth saying that, for matters referred to it by the Government and the ORR, there must be an opportunity for the referees to review the watchdog’s findings and consider next steps before reports are published. The watchdog’s investigations may also uncover issues that need to be kept confidential, for instance commercially sensitive issues that should not be shared publicly. For those reasons, I do not support the amendments. The existing transparency and security requirements on the watchdog are comprehensive enough to ensure that the public and Parliament have access to investigation results and general reporting without compromising sensitive information.

I thank the hon. Member for Broadland and Fakenham for amendment 70, which would require the passenger watchdog to publish reports of its investigations within six months of completing them. Although we would expect the watchdog to publish reports of all investigations within a reasonable timeframe, it is important that it has some discretion. The watchdog’s investigation may uncover issues that need to be considered carefully and some investigations will naturally be more complex and time-consuming than others, for example investigations into persistent cross-industry issues involving multiple operators and regions.

Transport Focus has raised concerns that setting a deadline may force it to hasten or reduce the scope of investigations, which is not in the passenger’s interest. Transport Focus also has arrangements in place to raise urgent issues with operators, which would continue, so it can act quickly to solve problems for passengers in parallel with investigations if needed. In some cases, reports may benefit from being shared in draft, with time allowed for those impacted to consider improvements. The watchdog should have the flexibility, in that instance, to seek the best outcome for passengers. For those reasons, I do not support a statutory requirement to publish all investigation reports to a six-month deadline.

I thank the hon. Member for West Dorset for amendment 140, which proposes to remove the requirement for the Scottish or Welsh Ministers or the Secretary of State to consent to the publication of an investigation report on issues that they referred to the watchdog. Clause 43 is intended to ensure that Ministers have an opportunity to review the investigation report on matters they have referred to the council before the report is published. That is especially important where the matter under investigation is sensitive and needs some discretion to raise issues carefully and privately, as that may be the best and quickest way to get action for passengers. One example would be issues relating to availability of funding, where Ministers will need to weigh that up carefully against other priorities.

For those reasons, I do not support removing the requirement for ministerial consent before the council sends or publishes a report of an investigation resulting from a referral by the Secretary of State or by Scottish or Welsh Ministers. We are not expecting Ministers to refuse consent to publication, but the clause is a necessary safeguard to protect confidential information, to allow issues to be weighed up carefully and to ensure that problems are fixed for passengers as swiftly as possible. I urge the hon. Member to withdraw the amendment.

Finally, clause 43 will enable the passenger watchdog to prepare, share and publish reports of its investigation findings. As I have already set out to the Committee, the watchdog must obtain the Secretary of State’s consent before sending or publishing a report if the investigation was undertaken following a referral from the Secretary of State. Similar provision is in place if the investigation has been undertaken following a referral from Scottish or Welsh Ministers. If the investigation was undertaken following a referral from the ORR, the watchdog must inform the ORR before publishing a report of its findings. The clause will ensure that findings of the investigations are transparent and available to the public and Parliament, so that train operators, including GBR, can be held to account for the way they are treating passengers.

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[Keir Mather]

With your permission, Mrs Hobhouse, I will speak to the clauses now and address the new clause once I have heard the shadow Minister’s remarks.

Clauses 44 and 45 relate to complaints and dispute resolution. Clause 44 designates the passenger watchdog as the body that will deal with complaints about potential infringements to retained EU law on rail passenger rights. Retained EU law on rail passenger rights includes requirements on operators to provide travel information to passengers and assistance to passengers who need it to travel.

Transport Focus is currently the body designated to receive complaints about potential infringements to retained EU law on rail passenger rights. The Bill consolidates the existing regulation to ensure that Transport Focus retains that role when it becomes the passenger watchdog. The clause therefore replaces the existing regulations on this matter. That will ensure that operators are held to the same, or indeed higher, standards for passenger experience, and that there is still a body clearly responsible for monitoring and addressing such complaints.

Cause 45 places a duty on the passenger watchdog to provide an independent alternative dispute resolution service to users and potential users of train and station services. The watchdog will take over sponsorship of the Rail Ombudsman from the ORR to fulfil that duty, ensuring that the watchdog provides an independent service to rail passengers that can handle disputes between passengers and service operators fairly and impartially.

Transferring the sponsorship of the Rail Ombudsman to the passenger watchdog will provide an effective independent service that has the appropriate third-party accreditation. That includes ombudsman status, which gives it the power to require remedial action from operators on passenger complaints that it upholds. The clause will ensure that the watchdog has the legal obligation to continue to provide an alternative dispute resolution service, even after the existing contract with the Rail Ombudsman expires in 2028.

[Jerome Mayhew]

I have nothing to add on clause 44. Clause 45 provides a duty for the passengers’ council to secure independent dispute resolution arrangements. As the Minister just said, it is anticipated—according to the explanatory notes, at least—that it will take over sponsorship of the Rail Ombudsman from the ORR in order to fulfil that duty.

I want to ask the Minister what powers the dispute resolution function will have, because the Bill and the explanatory notes are entirely silent. That is the modus operandi that we have become used to during the course of these Bill proceedings: there is endless putting off, and the detail has not been thought out—or, certainly, not shared. This seems to be a similar case.

New clause 46, in my name, would ensure that the Office of Rail and Road continued to publish data on complaints in the same manner as it currently does. During a significant transition such as the creation of GBR, it is crucial that data collection and publication are maintained in a manner that allows for accurate comparison—another small but important point. The new clause would achieve that objective. The alternative is to risk an inability to make like-for-like comparison, which of course would let the new organisation off the hook. Without continuity of data collection and publishing, GBR would be able to avoid comparative scrutiny.

[Keir Mather]

I thank the shadow Minister for his remarks. We consulted the industry and the public on the future of the content and functions of the alternative dispute resolution service, and identified that the transfer of the Rail Ombudsman sponsorship to the watchdog represents the simplest option with the least disruption to the passenger experience. That choice was supported by both Transport Focus and the Rail Delivery Group.

In the current service, decisions on disputes are made by legally trained staff. That gives passengers and operators assurance and confidence that disputes are handled fairly and correctly. The resolutions are binding, and the impartiality and neutrality between passengers and operators ensures that disputes are resolved fairly. Passengers achieve fair solutions, and operators are required to issue reasonable compensation. That places the balance of duty on operators while ensuring that the passenger experience is at the heart of what the ADR service is there to facilitate. If the shadow Minister requires any further information, I will happily seek it out and provide it.

On new clause 46, I assure the shadow Minister that the ORR will retain its role as the official publisher of rail statistics. As now the frequency of publication is not dictated by law, which enables flexibility and allows the collection of data to be proportionate and needs-based and ensuring necessary levels of transparency. Detailed arrangements for the collection of data by the ORR in the new system will be worked through with GBR once it is established. However, the current system provides a great deal of transparency and we do not propose to reduce that going forward.

The passenger watchdog will have access to the data collected by the ORR and be able to use it to identify issues in areas for improvement for passengers and to follow up. I therefore hope that the shadow Minister will feel that this matter is already addressed by the Bill and existing legislation and will seek to withdraw his amendment. I also thank him for his contributions.

Question put and agreed to.

Clause 44 accordingly ordered to stand part of the Bill.

Clause 45 ordered to stand part of the Bill.

Clause 46

Standards

[Jerome Mayhew]

I beg to move amendment 71, in clause 46, page 24, line 26, after “for” insert

“all users and potential users of the railways including, in particular,”.

This amendment allows the Passenger Council to set access standards for all users and potential users of the railway.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 72, in clause 46, page 24, line 33, at end insert—

“(e) passenger service reliability, including punctuality, cancellations, short-forming, delays and the reliability of key connections,

(f) safety and security, including safety incidents, security incidents affecting passengers, staff presence, and delivery of safety-critical maintenance,

(g) comfort and on-board experience on passenger services, including cleanliness, the functioning of heating, air-conditioning, and lighting, overcrowding, the availability and performance of any internet connection or power sockets, and toilet facilities,

(h) affordability and value for money of passenger services, including fare levels, availability of discounted or flexible fares, transparency of fare information, and passenger perception of value for money.”

This amendment would require the Passengers’ Council to set standards relating to the reliability, safety and security, comfort and on-board experience and affordability of railway passenger services.

Amendment 141, in clause 46, page 25, line 1, leave out subsection (5).

This amendment removes the requirement for the consent of the Secretary of State (and the Office of Rail and Road) before the Passengers’ Council sets, varies, or revokes standards.

Amendment 73, in clause 46, page 25, line 1, leave out “and the ORR”.

This amendment means the Passenger Council does not need the ORR’s consent to set, vary, or revoke standards.

Amendment 144, in clause 46, page 25, line 3, leave out subsection (6).

This amendment aims to ensure the independence of the Passengers' Council by removing the requirement for the Secretary of State’s consent to publish new standards.

Clause stand part.

New clause 16—Access for All programme: review—

“(1) Within a year of the passing of this Act the Secretary of State must conduct a review of the Access for All programme.

(2) The review as set out in subsection (1) must identify the level of investment required to support accessibility improvements.

(3) Accessibility improvements as set out in subsection (2) include ensuring step-free access to all—

(a) platforms;

(b) entrances to stations;

(c) exits from stations.

(4) The review must identify all stations with fewer than 1,000,000 entries and exits a year, as recorded by the estimates of station usage published by the Office for Rail and Road, that do not have step-free access as set out in subsection (3).

(5) The review must set out an explanation for spending decisions on the Access for All programme between the period 25 October 2022 and 24 May 2024.

(6) The review must set out recommendations with the objective of facilitating the level of investment required to support accessibility improvements.”

This new clause would mandate a review of the Access for All programme. The review would seek to ensure that step-free access at railway stations is provided under the programme. The review would explain spending decisions on the programme under the previous Government and set out recommendations for future spending.

New clause 17—Accessibility of passenger information: trains—

“(1) Great British Railways and all passenger railway service operators must ensure that all trains that they operate provide passenger information announcements that are accessible for passengers with sight or hearing loss.

(2) Announcements under subsection (1) include information on—

(a) the current and next station;

(b) interchanges at any given station;

(c) safety.

(3) The Passengers’ Council must monitor compliance with subsection (1) under its duties in section 46.”

This new clause ensures that passenger information provided on trains is accessible for passengers with sight or hearing loss.

New clause 18—Accessibility of passenger information: stations and railway premises—

“(1) Great British Railways and all passenger railway service operators must ensure that all stations and railway premises that they operate provide passenger information systems that are accessible to passengers with sight or hearing loss.

(2) The Passengers’ Council must monitor compliance with subsection (1) under its duties in section 46.”

This new clause ensures that passenger information provided in stations and railway premises is accessible for passengers with sight or hearing loss.

New clause 53—Accessible ticket machines—

“(1) The Secretary of State must by regulations make provision about the accessibility of ticket machines in all stations used by Great British Railways passenger services.

(2) Regulations made under this section must provide that all stations used by Great British Railways passenger services have at least one ticket machine that meets necessary accessibility requirements for wheelchair users.

(3) Regulations made under this section must provide that all ticket machines—

(a) offer all ticket types available across all Great British Railways passenger services;

(b) have the same user interface;

(c) include accessibility options for passengers with sight or hearing loss; and

(d) include the same language options as ticket machines operated by Transport for London.

(4) Regulations under this section are subject to the affirmative resolution procedure.”

This new clause would require the Secretary of State to mandate the use of the same ticketing machine across all Great British Railways passenger service stations, introduce a minimum number of accessible ticket machines per station and offer the same ticketing options across the network for passengers and tourists.

New clause 69—Accessible rail strategy—

“(1) Within 12 months of the passing of this Act and before the end of each subsequent period of 10 years, Great British Railways must publish a strategy on accessible rail.

(2) Each strategy under subsection (1) must set out required services standards for stations operated by Great British Railways.

(3) Services standards under section (2) must include targets for the—

(a) percentage of stations with step free access,

(b) number of days per year on which lifts at each station are operational,

(c) number of stations at which passenger assistance is available.

(4) Before the end of 12 months beginning with the publication of a strategy under subsection (1), and before the end of every subsequent 12 months, Great British Railways must publish a report on performance against the strategy.

(5) Any report under subsection (4) must be laid before both Houses of Parliament.”

This new clause mandates that Great British Railways publish an accessibility strategy every ten years to monitor and improve accessibility across the rail network, and that GBR reports annually on its progress against the accessibility strategy.

[Jerome Mayhew]

Clause 46 gives the passengers’ council a power to set consumer standards for operators of rail passenger services and station services, which will be imposed on them via licence conditions. Of course, we have not seen any of those licence conditions, so we will just have to take it on faith. The clause sets out matters that the standards may cover, including passenger assistance, provision of travel information, a process for compensation if services are disrupted, and complaints about passenger services. The council must seek the Secretary of State’s and the ORR’s consent before setting new standards or varying existing ones, and it must publish them, and any variations or revocations of them, and monitor how operators are complying with them.

In summary, the clause gives the passengers’ council a standard-setting role in areas such as assistance, information, compensation and complaints. What about standards on core passenger priorities, such as punctuality, reliability, crowding, staffing, cleanliness, safety and ticketing transparency? Would the Secretary of State be minded to grant consent for such standards, and if not, why not?

Requiring both the Secretary of State and the ORR to consent to any new standard creates two veto points, limiting the council’s independence. The result is a standards framework far weaker than the broader watchdog model described in the consultation. As we have discussed, subsection (2)(a) makes no direct reference to general users of the railway; the only reference is to disabled people. While I understand the additional focus that disability access requires, the current wording risks a wholly unbalanced approach for the new organisation.

Amendment 71 would solve that drafting imbalance and encourage the passengers’ council to set standards for all users and potential users of the railway. In drafting it, all I did was take the Government’s own words in clause 18, which, in describing the general functions, refers to all users, both able bodied and disabled. It does not seem to be an enormous stretch to require the passenger watchdog to have a similar functions scope as the organisation that it is watchdogging.

Amendment 72 would require the passengers’ council to set standards relating to the reliability, safety and security, comfort, onboard experience, and affordability of railway passenger services. These are the key issues of importance to passengers. Why do the Government not allow their key champion to tackle the real problems and not just the peripheral ones? Instead of focusing on information provision and complaints processes, let us get to the nitty-gritty. Let us have a watchdog that can actually draft and implement standards, and enforce improvement on a large nationalised organisation in the interests of passengers—that is what they actually want—rather than tipping a cap towards it and saying, “Oh yes, we’ve got a watchdog but it has no enforcement powers. It can write standards, but only about what information you receive, not about the really important stuff.”

If the Government really want to put

“passengers at the heart of the railway”,

why do they not vote for these amendments and enhance the powers of the passenger watchdog? They cannot have it both ways. At the moment, it looks like they are just pretending; they have a superficial watchdog that ticks a box but has very limited practical use for passengers.

Amendment 73 would remove the passengers’ council’s need to obtain the ORR’s consent to set, vary or revoke standards. A truly effective passenger watchdog needs to have its own real powers, and the ability to set its own standards without the consent of another organisation. Why does the Minister not have faith in his own passenger watchdog to do that? If his answer is that such an objection from the ORR would relate to safety-critical functions, why does the Bill not just say that? The Government are planning on stripping most of the competences away from the ORR, save for the remaining aspect of safety, but they do not say, “If the watchdog has a standard that has an impact on the safety-critical application of the railway, it needs to get the permission of the ORR.” That would make sense. Instead, the ORR has a blanket veto.

Amendment 141, in the name of the hon. Member for Didcot and Wantage, would remove the requirement for the consent of the Secretary of State and the ORR before the passengers’ council sets, varies or revokes a standard—a similar approach to that which I have put forward. I would be minded to support it, were it to be pressed to a Division.

Amendment 144 comes from a similar quarter. I am sure it is unintentional, but it contains a drafting mistake. The notes to the amendment make it clear that it seeks to delete subsection (5), but the wording as it stands relates to subsection (6). I stand to be corrected, but I think that is what has happened.

New clause 16, in the name of the Liberal Democrats, would require a review of the Access for All programme. It seeks to ensure that step-free access at stations is provided under the programme. The review would explain historical spending decisions and set out recommendations for future spending. I will leave new clauses 17 and 53 to the Liberal Democrat spokesman.

New clause 69, in the name of my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer), would mandate GBR to publish an accessibility strategy every 10 years, to monitor and improve accessibility across the rail network, and to report annually on its progress against that strategy. I welcome that approach to transparency and the focus on accessibility. It deals with the Minister’s arguments about imposing onerous reporting targets on GBR. Given the number of stations involved, the requirement is limited to once a decade, which would be a reasonable compromise. Without such data, how can GBR expect to allocate resources efficiently? The Minister needs to set out how GBR will address accessibility investment without such data. I anticipate an argument that it would be imposing onerous conditions on GBR for it to have an idea as to accessibility around the country. Every now and again, it should know what its own business is up to.

[Olly Glover]

The shadow Minister is right to say that our amendments have similar intentions to his; we may have taken slightly different avenues but we are heading in the same direction.

Amendments 141 and 144 are intended to reduce the Secretary of State’s role in the passengers’ council’s abilities to set standards and go about its work. The shadow Minister is quite right to point out that there is a typo in amendment 144, which I had not spotted—the intention is to delete subsection (5) and not subsection (6). I thank him for drawing our attention to that.

--- Later in debate ---

[Keir Mather]

I thank hon. Members for their amendments, which relate to the standard-setting role of the passenger watchdog and to accessibility. I will speak first to those related to the passenger watchdog.

Amendment 71 would allow the passenger watchdog to set accessibility standards for all users and potential users of the railway, replacing the current reference to disabled passengers and those needing assistance. It is important that all passengers can access the railway, and I support the shadow Minister’s intention to ensure that that happens. However, clause 46 already covers both users and potential users of the railway who require assistance to access services. Furthermore, the list of areas in which the watchdog may set standards is not exhaustive; it can set accessibility standards for anyone it deems appropriate, potentially including passengers travelling with prams or some of the other examples that were outlined. Let me also clarify that the wording of the clause is not exhaustive, so as well as the examples given in the Bill, the passenger watchdog can set standards on any other matters relating to passenger experience, at its discretion. That allows it to be responsive to passenger feedback and passenger needs. For that reason, I do not feel that the amendment is necessary.

Amendment 72 would expand the list of example areas where the passenger watchdog may set standards. First, as I mentioned, the clause already allows the passenger watchdog to develop standards covering all areas of the passenger experience. The list in subsection (2) sets out matters that may be covered by the standards and is not exhaustive, so it does not prevent the passenger watchdog from developing further standards in other areas in time; in fact, we expect that it might do so, for some of the very reasons that the shadow Minister suggested. The amendment is therefore unnecessary, as it would not make a practical difference to the watchdog’s powers. Let me also clarify that standards on safety and security would significantly expand the remit of the watchdog, and are best left to expert safety bodies such as the ORR.

[Jerome Mayhew]

I think the Minister may have misunderstood my point. I was not for a moment suggesting that the passenger watchdog should take over responsibility for safety-critical functions. I was anticipating that he might argue that the ORR needs to retain a veto right because there might be clashes with its safety-critical functions, in which case the clause could be redrafted to make it clear that that is the area of focus.

[Keir Mather]

I thank the shadow Minister for that clarification.

Amendment 141 would remove the requirement for the Secretary of State and the ORR to consent to standards that may be set, varied or revoked by the passenger watchdog. Amendments 73 and 144 would both remove the requirement for the ORR and the Secretary of State respectively to consent to new standards. It is my view that the watchdog must seek the Secretary of State’s consent before the standards are referenced in associated licence conditions, and therefore before they becoming binding on operators, because that is one of the only ways to ensure that the standards are affordable and actionable.

Ultimately, the Secretary of State is funding GBR, and if the Government are not able to provide the funds to support a new standard, which could in theory add costs for operators, the standards are doomed to fail. Similarly, the ORR will remain the sector enforcement body, enforcing all licences. It is therefore important that it gives consent to standards before they become binding on operators. That will ensure that all standards are fair and enforceable. These measures are necessary to ensure that the new rail system will work effectively. The Secretary of State’s and the ORR’s input into the standards will provide constructive challenge, ensuring that all standards are high quality and serve the railway as well as possible.

All three bodies are subject to the duty to promote the interests of passengers and disabled passengers, so they will share a common goal of improving the passenger experience. There should therefore be no concern that the process will weaken or undermine standards; rather, all bodies will be committed to improvements for the passenger. I therefore urge the hon. Members for Broadland and Fakenham and for Didcot and Wantage not to press their amendments.

New clause 16 would require the Secretary of State to review the Access for All programme, which delivers step-free access upgrades at stations across Great Britain. I recognise that passengers with accessibility needs often find rail travel challenging, as facilities and assistance frequently do not meet expectations. Many of Great Britain’s 2,581 railway stations predate modern accessibility standards, making navigation difficult for disabled passengers. That is why the Access for All programme was introduced in 2006, and why it is so important. More than 270 stations have benefited from it so far.

The hon. Member for Didcot and Wantage has proposed a review of the programme, and I am delighted to inform him that the Government agree with him so strenuously that a review was already conducted in late 2024. The Department and Network Rail have acknowledged that the delivery of the programme from 2019 to 2024 was disappointing, which led to the late 2024 review. The national Network Rail Access for All team has now been strengthened to improve governance and financial control, and accessibility has been given a higher priority by all Network Rail regions. That review, and the associated changes, resulted in almost 34 projects being completed in the last 18 months, compared to 36 in the previous five years. I think that that demonstrates our commitment to improvement.

--- Later in debate ---

Now—with, I am sure, considerable relief for all members of the Committee—we reach clause 46. The clause will enable the passenger watchdog to set minimum consumer standards for train and station operators, including GBR, which they must meet as part of their licence conditions. It sets out what areas the standards may cover, including passenger assistance, the provision of travel information, the process for compensation if services are delayed or disrupted, and complaints about passenger services. That list is not exhaustive, and the watchdog can create new standards covering any aspect of the passenger experience it considers appropriate. We want the watchdog to set consumer standards so that most consumer functions sit in one body—our passenger champion—which can drive up standards, advocate for improvements for passengers and hold operators accountable in a meaningful way, while having a powerful but proportionate voice in the industry. I commend the clause to the Committee.

[Jerome Mayhew]

I am grateful to the Minister for his detailed assessment of the new clauses and amendments. In the interests of time, I do not propose to press amendment 71, but I do not swallow the explanations given in relation to amendment 72. We need to focus the passenger watchdog on important issues for passengers, so we will press that amendment to a Division. However, on amendment 71, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 72, in clause 46, page 24, line 33, at end insert—

“(e) passenger service reliability, including punctuality, cancellations, short-forming, delays and the reliability of key connections,

(f) safety and security, including safety incidents, security incidents affecting passengers, staff presence, and delivery of safety-critical maintenance,

(g) comfort and on-board experience on passenger services, including cleanliness, the functioning of heating, air-conditioning, and lighting, overcrowding, the availability and performance of any internet connection or power sockets, and toilet facilities,

(h) affordability and value for money of passenger services, including fare levels, availability of discounted or flexible fares, transparency of fare information, and passenger perception of value for money.”—(Jerome Mayhew.)

This amendment would require the Passengers’ Council to set standards relating to the reliability, safety and security, comfort and on-board experience and affordability of railway passenger services.

Question put, That the amendment be made.

--- Later in debate ---

[Jerome Mayhew]

I beg to move amendment 74, in clause 47, page 25, line 23, leave out from “Council” to the end of line 32 and insert

“take such action (if any) as it thinks appropriate for the purpose of remedying the contravention, or avoiding it taking place or being repeated.”

This amendment would give the Passengers’ Council the power to enforce improvement plans.

[The Chair]

With this it will be convenient to discuss the following:

Clause stand part.

New clause 45—Passengers’ Council: enforcement powers—

“(1) Within 6 months beginning on the day on which this Act is passed, the Secretary of State must by regulations make provisions for the enforcement powers of the Passengers’ Council.

(2) Regulations under this section must make provision about—

(a) the making of orders by the Passengers’ Council relating to operator compliance with its purpose;

(b) procedural requirements relating to orders under paragraph (a);

(c) the validity and effect of orders under paragraph (a); and

(d) penalties associated with orders under paragraph (a).

(3) In making regulations under this section, the Secretary of State must have particular regard to sections 55 to 57A of the Railways Act 1993.

(4) Regulations under this section may amend provision made by or under—

(a) the Railways Act 1993;

(b) the Railways Act 2005.

(5) Regulations under this section are to be made by statutory instrument.

(6) Regulations under this section may not be made unless a draft of the statutory instrument has been laid before, and approved by a resolution of, each House of Parliament.”

This new clause would require the Secretary of State to provide the Passengers’ Council with enforcement powers broadly equivalent to those of the Office of Rail and Road under the Railways Act 1993.

[Jerome Mayhew]

Clause 47 deals with improvement plans. It allows the passengers’ council to request improvement plans from licensed rail operators

“where it judges them to be, or likely to be, non-compliant with the standards it sets and therefore, the consumer licence conditions”—

not that we have seen them. The clause continues:

“The improvement plans would be requested from operators to allow them to explain their planned improvements before issues were referred to the ORR or potential enforcement action”—

although we do not know whether they would choose to enforce either.

The clause highlights—again—just how toothless the passengers’ council will be. It still has no direct enforcement powers, and the explanatory notes confirm that these plans are only a precursor to possible ORR action. If an operator ignores a plan, the council can do nothing about it at all, except refer the matter to the ORR, which may

“take such action (if any) as it thinks appropriate”.

This is another two-stage approach from the Government, with no guaranteed remedy, and it leaves the council structurally dependent on the ORR for all meaningful enforcement. There is no requirement for the ORR to do anything at all, when provided with a file from the passengers’ council. There is no ability for the ORR to adopt a passengers’ council investigation as its own, and any enforcement action will be required to consider the matter afresh. I accept the Minister’s earlier point that the ORR will be able to read documentation presented by the passengers’ council, but that is it. That will take time and add cost, and it will fail the consumer all the way through the process. It is not the ORR’s fault; it is how the Government are designing the system, which falls well short of the Government’s stated aim of creating a genuinely empowered passenger watchdog. Subsection (2) says:

“If the person fails to take the steps set out”

in the improvement plan, or does not prepare one

“within a reasonable time, the Passengers’ Council must refer the matter to the ORR”.

That part is mandatory, but the ORR’s response is not mandatory. Why is that? Perhaps the Minister can help us out.

The new system needs to be able to stand up for passengers, with a watchdog worthy of the name. Amendment 74 would give the passengers’ council the power to enforce improvement plans, and new clause 45 sets out how that will be achieved. It would require the Secretary of State to provide the passengers’ council with enforcement powers broadly equivalent to those of the Office of Rail and Road under the 1993 Act. The Government want to put passengers at the heart of the railway, but they have created a passenger watchdog with no teeth—or power—to enforce any of its decisions. To give an advance indication, I will seek to divide on both amendment 74 and new clause 45.

[Keir Mather]

I thank the shadow Minister for amendment 74 and new clause 45. Amendment 74 would give the passenger watchdog enforcement powers when it issues requests for improvement plans, and new clause 45 would give the passenger watchdog enforcement powers broadly equivalent to those of the ORR.

We are creating a strong passenger watchdog, which will have real powers to monitor passenger experience and hold GBR and others to account. It will be able to demand information from GBR to a deadline, investigate problems and demand improvement plans to encourage improvements. Finally, it can refer cases for enforcement to the ORR.

It is important to have one clear enforcement body for the entire sector to avoid duplication or confusion for industry. If there were two bodies with enforcement powers, the risk of conflicting enforcement steers would be too high. The ORR will therefore enforce GBR’s new, streamlined licence, ensuring that the organisation meets its industry obligations and all minimum standards, including passenger standards. As it does today, the ORR will also enforce all other railway licences, to ensure that there is an independent, consistent enforcement body for the sector. That is fair and rational.

If operators did not comply with their consumer licence conditions—for example, relating to accessible travel standards—the passenger watchdog would directly engage with them and request an improvement plan. We would naturally expect operators to comply with that request, because if they do not, they will be aware that the ORR can simply take action against them for the original licence breach. That mirrors what happens in practice today, where most compliance issues are resolved through direct engagement and improvement plans rather than resorting to enforcement.

[Jerome Mayhew]

I am interested in the Minister’s repeated insistence that there would be confusion if there were more than one enforcement body for rail activities. What is his proposed solution to the Competition and Markets Authority and its enforcement competency for the railways, which currently is shared with the Office of Rail and Road? Is it his plan to amend the competencies of the Competition and Markets Authority? If not, why is the argument so overwhelming to prevent the passenger watchdog from having teeth, when he allows the CMA to have teeth?

[Keir Mather]

The shadow Minister previously made a point that related to whether the ORR and the passenger watchdog had an equivalent power when they sought to enforce against railway licences. My point there was that we could have contradictory steers arising out of these licences being in conflict with each other. That is where the route of not having dual licence- enforcing capabilities lies, and it is the argument against amendment 74.

Turning back to operators’ co-operation, we expect our GBR licence proposals to include a licence condition requiring operators to co-operate with the passenger watchdog, which will strengthen these provisions further. I hope that that reassures the shadow Minister that the system will work effectively to hold operators to account. I cannot support any amendments that confuse the enforcement landscape, as two enforcement bodies would be duplicative, burdensome on operators and potentially very confusing. That is not a system that would drive good performance. I therefore urge the shadow Minister not to press his proposals.

Let me turn now to clause 47, which will give the passenger watchdog the power to require improvement plans from train and station operators where it judges that an operator might be breaching its standards and, therefore, the consumer licence conditions. Demanding improvement plans from operators will allow them to set out the steps they plan to take to address the issues and meet their licence conditions before non-compliance is referred to the ORR for potential enforcement action.

The clause will allow the watchdog to work with operators to seek improvements collaboratively. Improvement plans are a crucial element of this engagement, as they allow operators to set out a plan to achieve compliance and to have a dialogue with the passenger watchdog. The watchdog can represent the passenger by making suggestions for improvements and advocating sensible solutions. Enforcement is the last resort to ensure compliance, and it is important that the watchdog has sufficient means to encourage operators to do the right thing before it refers any persistent or serious issues to the ORR.

[Jerome Mayhew]

I am unpersuaded. As I previously indicated, I will press amendment 74 to a vote.

Question put, That the amendment be made.

--- Later in debate ---

[Keir Mather]

I will speak first to the clause and then to the amendments, once I have heard hon. Members’ comments on them.

Clause 48 will establish the passenger watchdog as a statutory adviser, able to advise Ministers and industry bodies on matters of importance to passengers. The clause places a duty on the watchdog to provide advice to certain bodies, including the Secretary of State, rail operators and devolved Governments; they may also refer matters to it. The watchdog will also have a duty to provide advice without a referral if it considers it appropriate. The watchdog will be in a unique position to understand passenger experience because of its research and investigations functions, as well as its access to complaints and core industry performance data.

We wish to establish the watchdog as the central body that Ministers, mayoral strategic authorities, the ORR, GBR and other train and station operators can go to for advice on passengers’ interests, needs and priorities. We also want to ensure that the watchdog is an authority on all passenger matters, so that Ministers and others take its advice seriously. This will be the first time that the rail industry has had a statutory adviser covering all passenger matters.

Clause 49 will place a duty on GBR to consult the passenger watchdog when developing or changing policies or procedures that significantly affect the interests of passengers. The clause sets out an indicative list of matters on which GBR should consult the watchdog. Those include passenger rights, handling disruption to rail services, determining fares, and arrangements for the sale of tickets. By feeding the watchdog’s insight to GBR when central policies and procedures are being developed, it will support GBR in creating better policies that prioritise passenger needs.

I return briefly to the official Opposition’s wise words about culture last week, because the Government absolutely agree that getting culture right is essential to the success of the railway. The watchdog’s role here will be critical in influencing the culture of the reformed rail industry, being involved in all relevant policymaking to ensure that the focus on passengers is at the heart of everything the railway does. I therefore commend clause 49 to the Committee.

Clause 50 will give the passenger watchdog the power to publish any information or advice it considers that passengers, or potential passengers, may find useful. For example, this could include publishing information on train operator performance to encourage improvements, such as league tables or the naming and shaming of poorly performing operators or routes. It could involve setting out complaint handling processes or advising passengers on their rights.

Before publishing information or advice, the watchdog must consider whether it is necessary to exclude any matter relating to an individual or body that would have a serious and negative impact on their interests. This could include sensitive, personal or market information. This power will be central to the watchdog’s ability to hold operators to account publicly.

I now turn to clauses 51 and 52. Clause 51 will give the Secretary of State the power to exclude certain rail services from the duties imposed by clauses 37 to 43, 45 and 48. This power mirrors an existing power in the Railways Act 1993 and has been included because it is not appropriate, nor a proportionate use of resources, to require the watchdog to investigate services that are not part of the wider national network, are not licensed and mainly operate for tourism or leisure purposes—such as heritage trains. As service providers change over time, the clause can also be used to include new services in the watchdog’s remit, or to modify its duties in relation to specific services. In the future, there may be new services that the watchdog ought to monitor, or which it ought to monitor in a slightly different way. The power therefore exists to ensure that all relevant operators can be appropriately held to account by the passenger champion. The clause does not mean that the watchdog is prevented from monitoring any excluded services, just that the watchdog is not obliged to do so.

Clause 52 provides additional clarity by defining some of the terms used in this chapter. For example, the clause defines a “disabled person” as

“a person who is a disabled person for the purposes of the Equality Act 2010”.

I commend clauses 48 to 52 to the Committee.

[Jerome Mayhew]

The Minister has described the function of clause 48, the lead measure in this group, but there is one notable exception from the list of bodies that can refer to the council for advice under clause 48(1)(a) as drafted. It includes mayoral combined authorities, Transport for London and Ministers—whether the Secretary of State, Welsh or Scottish Ministers—but there is no room for local transport authorities. I am sorry that my hon. Friend the Member for South West Devon is not in her place, because she made the point powerfully in previous sittings of the Committee that some areas of the country do not have mayoral combined authorities and never will, because of their geographic or demographic set-up—that is particularly the case in the south-west. Those areas still have local transport needs, and a local transport authority, yet under the Bill as drafted, those authorities are excluded from asking the advice of the passenger body. We have heard that there are many areas that will never have an MCA but that still have rail-related concerns and issues. I seek advice from the Minister: what is the thinking of the Government, that they have deliberately excluded local transport authorities from the clause?

Clause 49 deals with “Consultation about railway passenger services and station services”. Again, I have left it to the Minister to explain what the clause does, but it sets out the policies and procedures that GBR should consider consulting the passengers’ council on. It gives GBR discretion to decide whether to do so based on its assessment of the impact on passengers. That is, again, quite important. The clause creates a duty on GBR to consult the passengers’ council, but only where GBR itself decides that a policy change will significantly affect passengers. The explanatory notes confirm that that judgment is entirely for GBR. GBR, the Secretary of State and Scottish Ministers will all owe consultation duties to the council, but the Bill imposes a duty only on GBR, and even then only on GBR’s own assessment of significance. There is no parallel duty on Ministers, meaning that major ministerial decisions affecting passengers could fall entirely outside statutory consultation. The list in clause 49(2) once again seeks to sideline the passengers’ council by limiting its remit. The list does not cover the issues that

“significantly affect the interests of the public in relation to…passenger services or station services”,

as described in clause 49(1)(b); far from it.

Amendment 75 would require GBR to consult the passengers’ council when GBR is developing or changing its procedures, with reference to the passenger-focused KPIs outlined in proposed new clause 2:

“reliability, including punctuality…short-forming…key connections… safety and security…comfort and on-board experience”

and

“affordability and value for money”.

Those are issues at the heart of the passenger experience. Let the passengers’ council do a proper job.

Clause 50 gives the passengers’ council the power to publish information and advice for

“users or potential users of railway passenger services”.

The clause only allows the passengers’ council to publish information; it does not require it to publish information. That means the council can choose not to publish anything at all. The clause also gives no sense of what should be published, or how often. Perhaps the Minister could expand on the reasons he has not decided to require publication when it is about information and advice; that seems a bit odd.

Clause 51, which is on the power to make exclusions, will be watched by many, as it is really important to rail enthusiasts. Committee members should be careful when commenting on it, because people are keenly interested in this power. Actually, on this occasion I think the Government have got it about right. The clause replicates similar provisions in the 1993 Act—specifically, sub-sections (7B) and (7C) in section 76.

Clause 51 enables the Secretary of State to exclude services from one or more of the duties imposed by clauses 37 to 43, 45 and 48 through regulations, or modify those duties for particular services. However, before making changes, the Secretary of State must consult the passengers’ council and the London Transport Users Committee.

There are currently two exemptions from the similar requirements in the 1993 Act in place, one of which excludes services without through-ticketing facilities and which are exempt from holding a licence. Charter and heritage railway operators fall under this exemption. The Government assert in the explanatory notes to the clause that,

“it would be burdensome and unnecessary for the Passengers’ Council to be required to investigate heritage railway operators,”

which only operate for tourism and recreational purposes, not for the mainline network. I agree that those potential exclusions are reasonable. The Government rightly point out that burdening heritage rail with unnecessary regulation when the hospitality and tourism sector is facing serious challenges—admittedly, because of this Government—would be disproportionate.

Very few constituencies do not boast a heritage railway, so I declare an interest, Mrs Hobhouse: the Bure Valley Railway and the start—or the finish, depending on which way a person is going—of the Wells and Walsingham Light Railway run in my constituency of Broadland and Fakenham.

[Edward Morello]

I have been on that.

[Jerome Mayhew]

I am interested to hear that the hon. Gentleman has been on that railway. I would continue on that, but I have gone on long enough by saying, “and another thing—I remember”.

Rail charter services are a different matter that must also be considered. Those with children may have travelled on one of the many Christmas polar expresses that are chartered services. They are very important to tourism and to the financing of the railway, as they make an economic contribution to the running of it. They sit in a unique space of quasi-open access and are a useful component of the railway. Mainline heritage rail routes, such as the Cambrian express—although the Minister of State for Rail, Lord Hendy, still needs to do some work to restore steam, rather than diesel, locomotives to that heritage route—as well as services with the Flying Scotsman, or Sir Nigel Gresley, which is the last working version of the Mallard class, the A4s, are very important, and crowds of people gather to watch them steam past.

I applaud the Government for that sensible exemption. All I ask is that they continue to do what they can to facilitate and support heritage and chartered railways, and I would be grateful to hear the Government’s plans to do so, if there are any. I would propose no amendments to clause 51. Clause 52 is the interpretation chapter, and I am happy for that to continue without amendment.

That leaves me solely with the pleasure of discussing new clauses 68 and 70, tabled by my hon. Friend the Member for Runnymede and Weybridge. New clause 68 would give the Secretary of State the power to direct GBR to co-operate with transport authorities to ensure the effective operation of transport networks and to reduce disruption. Network Rail is often cited as a poor neighbour, with no interest in co-operating with other transport modes, or frankly with adjacent landowners— I have had more than one letter of complaint from constituents on that—to minimise disruption not on the railway. The Opposition support the intentions behind the new clause. Culture change is needed in the successor to Network Rail, and a duty to co-operate would at least help. The Minister needs to recognise the existing problem of Network Rail’s culture being—I think it is fair to say—deeply suboptimal in relation to this, and set out his proposals for improvement.

New clause 70, also in the name of my hon. Friend the Member for Runnymede and Weybridge, sets out the requirements for GBR to ensure that any planned changes to passenger services are only made with due consideration of its objectives and are fully communicated with stakeholders. I read the new clause into the record, but I do not propose to press it to a Division when the time comes.

--- Later in debate ---

[The Chair]

Do you wish to press amendment 75 to a vote?

[Jerome Mayhew]

I have thought long and hard about this, Mrs Hobhouse, and given the time of day, we will let it pass.

Question put and agreed to.

Clause 48 accordingly ordered to stand part of the Bill.

Clauses 49 to 52 ordered to stand part of the Bill.

Clause 53

General duties of the LTUC

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to consider the following:

Clause 54 stand part.

Government amendment 173.

Clauses 55 to 58 stand part.

[Keir Mather]

Committee members will be very pleased that I have considerably less to say about this group than the previous one.

Government amendment 173 corrects a small naming error in the Bill: a clause for the London Transport Users Committee incorrectly refers to the passengers’ council. The correction ensures that the Bill is drafted correctly.

Clause 53 will place two general duties on the London Transport Users Committee, which has the operating name London TravelWatch, that it must consider when carrying out its rail functions: to consider the interests and needs of disabled persons, and to consider the costs and efficient use of public funds. The aim of the clause is to align the duties of London TravelWatch with those of the passenger watchdog and ensure that both passenger champions will pay specific attention to the experiences of disabled people. The duties also ensure that the passenger champions take the overall cost of the railway into account, such as when making recommendations for improvement. That will ensure that their recommendations are realistic and actionable and, therefore, carry more weight in the industry. Aligning London TravelWatch’s duties and powers with the passenger watchdog, as many of the clauses do, ensures consistent passenger advocacy across Great Britain.

I now turn to the remaining clauses 54 to 58. Clause 54 expands London TravelWatch’s powers under section 252A of the Greater London Authority Act 1999 by giving it the explicit power to collect information that may be of interest to the public. Clause 55 expands London TravelWatch’s current investigation powers to align it with the powers the Bill grants to the passenger watchdog. That includes expanding the list of people who may refer matters to London TravelWatch for investigation, enabling them to obtain information from operators to a deadline, make representations on behalf of passengers and refer matters to the ORR for enforcement, as well as powers to publish investigation reports.

Clause 56 will designate London TravelWatch as the body to which complaints about potential infringements to retained EU law on rail passenger rights should be addressed within the London railway area. Clause 57 will give London TravelWatch the power to publish information and advice it considers appropriate for users or potential users of the railway in London. That could include information on operator performance—including GBR’s performance in London—such as league tables or naming and shaming, as well as passenger rights and complaint-handling processes. Clause 58 will ensure that London TravelWatch protects sensitive and confidential personal and commercial information obtained during its investigations or through its general power to collect information. I commend these clauses to the Committee.

[Jerome Mayhew]

We are at the final furlong—for today at least. I will keep the pace up for the last straight. I am not going to make any comments on clause 53, the general duties of the LTUC, because there is nothing to be improved. Clause 54, which amends section 252A of the Greater London Authority Act 1999, mirrors the passengers’ council in many ways. We could take the opportunity to seek to apply the same improvements to the LTUC that we have to the passengers’ council, but I have resisted that temptation given the Government’s reaction to all other proposals to date.

Clause 55 designates the committee as the body to which complaints about potential infringements of retained EU law on rail passengers rights should be addressed. I see no issue with that other than in relation to the criticism we have already outlined regarding the passengers’ council. It is clear that the clause is designed to ensure consistency in London in line with the rest of the United Kingdom, so we have no amendments there. I take on board the Minister’s comments on Government amendment 173 and make no further comment.

Clause 56, which is about complaints to the LTUC, again, allows the LTUC to be the official body in which complaints about retained EU law are handled. As the Minister has pointed out, that clause, like others in this group, mirrors the ability of the passengers’ council, so we have nothing else to add on that one.

I make no comments on clause 57 about the publication of information and advice by the LTUC. That brings us to clause 58—restrictions on disclosure of information by the LTUC. As we come to the last clause of the London Transport Users Committee, we also come to the last amendment to the Greater London Authority Act 1999. For those keeping track of these things at home, we are now amending section 252DC. The clause outlines restrictions in a very similar fashion to that of the passengers’ council, so we consequently have no further amendments to suggest for that clause either.

Railways Bill (Ninth sitting)

Jerome Mayhew Excerpts

Committee stage
Tuesday 3rd February 2026 Public Bill Committees

[The Chair]

Before we begin, I remind Members to switch their electronic devices to silent. Tea and coffee are not allowed during the sittings. I remind Members that the selection and grouping documents show the way in which amendment and new clauses have been arranged for debate. Any Divisions on amendments and new clauses will take place in the order in which they appear in the amendment paper.

Clause 25

Designation of services by Secretary of State

[Jerome Mayhew (Broadland and Fakenham) (Con)]

I beg to move amendment 226, in clause 25, page 14, line 9, at end insert—

“(1A) When designating railway passenger services, the Secretary of State must—

(a) take account of—

(i) the Rail Freight Target under section 17, and

(ii) the Infrastructure Capacity Plan under section 60; and

(b) demonstrate that designations under this section cause no unreasonable detriment to rail freight capacity or growth.”

This amendment requires that passenger service decisions are made in the context of network capacity and freight increase priorities.

[The Chair]

With this it will be convenient to discuss the following:

Clause stand part.

Amendment 227, in clause 26, page 14, line 33, at end insert—

“(1A) When designating railway passenger services, the Scottish Ministers must—

(a) take account of—

(i) the Rail Freight Target under section 17, and

(ii) the Infrastructure Capacity Plan under section 60; and

(b) demonstrate that designations under this section cause no unreasonable detriment to rail freight capacity or growth.”

See explanatory statement for Amendment 226.

Clause 26 stand part.

Amendment 228, in clause 27, page 15, line 20, at end insert—

“(1A) When designating railway passenger services, Welsh ministers must—

(a) take account of—

(i) the Rail Freight Target under section 17, and

(ii) the Infrastructure Capacity Plan under section 60; and

(b) demonstrate that designations under this section cause no unreasonable detriment to rail freight capacity or growth.”

See explanatory statement for Amendment 226.

Clause 27 stand part.

--- Later in debate ---

[Jerome Mayhew]

Thank you, Mrs Barker, for chairing the debate. It is great to see everyone back in the room.

Clause 25 requires the Secretary of State to designate the railway passenger services for which Great British Railways should be responsible. Designation is the mechanism for assigning responsibility for running passenger train services. The Secretary of State, Scottish Ministers and Welsh Ministers each have designation powers to set out services that GBR or others, including ScotRail, may run for them. Ministers can exempt services from these designations, thereby allowing them to be devolved to other authorities such as Transport for London. Designation also underpins the delineation of relevant powers and requirements in relation to those services, such as the discount fare schemes that we are going to discuss with clause 34.

The clause requires the Secretary of State to designate the railway passenger services for which GBR should be responsible. It excludes Scotland-only and Wales-only services, as well as services exempted under clause 28. Again, there is a reference to Transport for London, among others, being exempted from designation by the Secretary of State. It also clarifies that the Secretary of State is not required to designate services, even if parts of them are already designated by the Scottish or Welsh Ministers.

The explanatory notes state:

“The new Secretary of State designation is expected to be succinct and will not provide route nor timetable-level detail. This will ensure GBR has sufficient flexibility to act as a directing mind and plan best use of the network in the public interest and in accordance with its duties…All designations and changes must be published.”

The Government’s notes on the clause describe GBR as the “directing mind”, yet all its powers are able to be second-guessed by the Secretary of State, including the designation of services. That really prompts the question once again, who is the directing mind? Is it GBR or the Secretary of State?

The seeds of GBR’s failure as a directing mind are already being drafted into the text of the Bill. We have already seen all the Secretary of State’s rights to provide “guidance”, then to “direct” in clauses 7 and 9, as well as the long-term rail strategy in clause 15 and the decision on the provision of funding. This is Department for Transport management of the nationalised railways by the back door, confirming the suspicion that GBR will be, or is at risk of being—I hope it is not—the worst of both worlds. These are costs associated with a stand-alone organisation, coupled with the costs of a DFT shadow organisation that over time will grow again to second-guess GBR as catered for in this Bill. It is not just about the cost; it is about the delay, the obfuscation, the inability to decide whether a decision has actually been made and the second-guessing of decisions. That is death to dynamism in an organisation.

The railways obviously have two functions: passenger services and freight. Amendment 226 will make clear that any designation of passenger services will need to have taken account of freight and demonstrate that freight is not caused unreasonable detriment to capacity or future growth. The amendment is clearly in the interests of the common cause to make freight growth a target for GBR, which the Government agree with. It is impossible to deal with either passenger or freight without having regard to the other. That mutual regard is missing from the Bill, and this amendment supplies the necessary focus, so I shall seek to divide the Committee on it.

I move now to clause 26 and amendment 227. We recognise that, at present, Scotland funds and controls Scotland-only services. Scotland can and does designate cross-border services where it has an operational interest. Scotland must consult with the Secretary of State but, ultimately, has autonomy on Scotland-only designations. Clause 26 requires Scottish Ministers to designate Scotland-only railway passenger services and particular cross-border services—either those that they consider should be provided together with Scotland-only services or existing cross-border services designated to them before the Bill comes into force. It ties into clause 31, where Scottish Ministers can provide the designated services themselves or make direct awards under regulation 17 of the 2023 transport regulations.

In this instance, “Scotland-only services” refers to passenger services that start and end in Scotland and do not make a scheduled call in England or Wales. It provides flexibility for the designation to be made either for specific services or for services of a particular class or description. It also allows Scottish Ministers to designate cross-border services where they consider those services should be provided in conjunction with designated Scotland-only services. It is also worth noting that the clause excludes from designation any services exempt under regulations made under clauses 28 or 29, and requires consultation with the Secretary of State before designation, variation or revocation. It is my understanding that very limited designations are reserved to the UK Government. They lay primarily around open access and freight. Those two areas, I suspect, we will enter into discussions at length later in the Committee.

On cross-border services, it is eminently sensible that the UK and Scottish Governments co-ordinate strongly on this. A later amendment to another clause relates to the allocation of ticket sales on a proportionate basis, to ensure that UK and Scottish Governments—in the fullness of time, we will discuss the Welsh Government too—each get their fair share of funding. Amendment 227 would apply a duty to Scottish Ministers, similar to the one that amendment 226 would place on the Secretary of State, to take account of the rail freight target and the infrastructure capacity plan when considering passenger services. Depending on how the vote goes on amendment 226, I will take a view on whether it is worth proceeding to another Division on amendment 227.

Finally, I turn to clause 27 and amendment 228. It is a broadly similar approach, but applies to designation of services by Welsh Ministers. Hon. Members can read the explanatory notes if they wish, but I am just going to take that as read. On first reading the clause, it seemed sensible; after all, Welsh Ministers are responsible for services that start and end in Wales. The cited example in the explanatory notes is the Cambrian line, which typically goes from Aberystwyth and Pwllheli to Shrewsbury or Birmingham International. These services will, on occasion, terminate at Machynlleth. The Heart of Wales line goes between Swansea and Shrewsbury, and Holyhead services will typically end in England. The Welsh Government will have only a handful of services exclusively in Wales. That is a substantially different from Scotland. Those services are the Core Valley lines, the dedicated Swansea to Cardiff route and the Blaenau to Llandudno route—only three. All other services that start in Wales will generally run into England, which poses a significant challenge for the allocation of moneys from ticket sales.

The Minister may find it useful to outline the practical management of cross-border rail services, and how the Welsh Government’s operator can operate with a degree of confidence when it must report to both Governments, but exists under only one. That is a genuine tension, which I would be grateful if the Minister could explain the Government’s thoughts on.

Amendment 228 is similar to amendments 226 and 227. I will not repeat my arguments, but there is a qualitative difference between the situation in Scotland and that in Wales. It will have a significant impact on revenue sharing, where 97% of all routes for the Welsh Government contain an English element. I would be grateful if the Minister could consider that.

[The Parliamentary Under-Secretary of State for Transport (Keir Mather)]

Good morning, Mrs Barker, and to everybody—another day in Committee. I thank the hon. Member for Broadland and Fakenham for these amendments, which seek to ensure that the designation of passenger services does not negatively impact rail freight or undermine GBR in network capacity planning activity.

I hope it is helpful if I clarify that clauses 25 to 27, which set out designation powers of the Secretary of State and devolved Ministers for passenger services, only describe a very high-level mechanism for assigning responsibility for passenger services. For example, the designation helps make clear who is responsible for the service. Further clarity is provided by exemption from designation to show where services have been devolved to other authorities, such as to mayoral strategic authorities or Transport for London. Designation is not a detailed service specification, nor does it determine network access or capacity allocation.

Last week, we published a draft of the Secretary of State’s designation letter to help clarify that, and copies are available in the room today. Ministers’ designation powers do not override or conflict with GBR’s role in determining network access. The access decision process requires GBR to balance passenger and freight needs. The safeguards in the Bill, including the statutory duty to promote rail freight or the ORR’s oversight and appeals body to protect fare freight access are also unaffected by designation. The amendment is therefore impractical and unnecessary and would not achieve its intended purpose in practice.

Protecting rail freight, which I fully endorse, is already enshrined within the Bill. For absolute clarity, I must emphasise that the access clauses in the Bill set out the stages through which network access is determined. It is not determined or affected by designation. The access clauses include producing the infrastructure capacity plan, which will set out GBR’s view of how best to use GBR’s infrastructure to accommodate freight, open access and publicly funded passenger services, as well as maintenance and improvement of the network. GBR will take into account its infrastructure capacity plan when allocating capacity. In comparison, designation is simply the method of determining whether a service should be devolved to, for example, a local authority, or maintained by the Secretary of State and run by GBR. I therefore request that the hon. Member withdraw the amendment.

Clause 25 requires the Secretary of State to designate railway passenger services for which GBR should be responsible. Designation is the mechanism by which responsibility for who should run passenger rail services is determined. Clauses 26 and 27 replicate this, but for Scottish and Welsh Ministers respectively. The Secretary of State, Scottish and Welsh Ministers each have designation powers to set out services which GBR or others—including Transport Scotland or Transport for Wales—may run for them. Designation powers will also assist in providing clarity about which Minister has responsibility to provide, or contract for, cross-border services. Ministers can also exempt services from these designations, which is the way that services can be devolved to mayoral strategic authorities. That was the mechanism used to allow Transport for London to run its devolved service. As I have mentioned, the new Secretary of State designation is expected to be succinct and will not include route level or timetable detail. Designation is therefore entirely separate from access or timetabling decisions.

[Jerome Mayhew]

As I intimated previously, I will put the first amendment to a Division and then we will take a view after that.

Question put, That the amendment be made.

--- Later in debate ---

[Keir Mather]

Clauses 28 and 29 enable the Secretary of State and Scottish and Welsh Ministers to exempt certain railway passenger services from designation. Exempting a service means that the Secretary of State or devolved Ministers will not be responsible for that service. Instead, responsibility can be devolved to someone else—for example, a mayoral strategic authority—for them to run or contract out the service. That mechanism preserves the existing approach for devolving services to mayoral strategic authorities and their transport agencies, such as Transport for London or Merseytravel, and for light rail networks such as in Greater Manchester. The Secretary of State cannot exempt Scotland-only or Wales-only services, because those fall under the devolved responsibilities of Scottish and Welsh Ministers. Clause 29 allows devolved Governments to determine which services fall outside designation, offering flexibility in managing their respective networks.

These clauses are necessary to ensure that there is still a way to devolve services, where that can bring benefits and is the best outcome for the network. Exemptions must be made by regulations, ensuring that the allocation of responsibility for passenger services is transparent. Clause 30 provides supplementary provisions for exemptions under clauses 28 and 29. It allows exemptions to apply to specific persons, classes of persons, services generally or parts of services. Exemptions may be conditional or time-limited, so that decisions to devolve services can be tailored to the specific circumstances on a case-by-case basis.

[Jerome Mayhew]

You will be surprised to hear that I am going to canter through this, Mrs Barker. Clause 28 concerns the method by which the operation of passenger train services has been devolved. A good example is services operated by Transport for London and Merseyrail. It is clearly a sensible approach. There is only one clarification that I seek from the Minister. Paragraph 103 of the explanatory notes states:

“All existing exemptions from designations…will be retained.”

That, however, is not in the Bill. I would be grateful for the Minister’s clarification on the difference between the explanatory notes and the Bill. I am not looking for an amendment to the Bill, but his assurance on the Government’s intention. Clause 29 is similar, but relates to Scottish and Welsh Ministers. I see no need to change it as drafted. It sits in line with clause 28 and seems not to act in contravention of the devolution settlement.

Clause 30 clarifies that exemptions made under clause 28 by the Secretary of State, or clause 29 by the Scottish or Welsh Ministers, may apply to specific persons, classes of persons or services generally. I have no objection to the clause, but out of interest, I would be grateful if the Minister could explain in what circumstances the clause would be useful.

[Keir Mather]

I can start by confirming that existing exemptions from designation will be retained. I hope that provides an assurance to the shadow Minister. The powers could be used to allow devolved Administrations to determine which services fall outside of designations, and therefore give them flexibility in meeting the needs of passengers relying on services that otherwise could fall through the cracks. I hope that, having provided the shadow Minister with that assurance, he can support these clauses.

Question put and agreed to.

Clause 28 accordingly ordered to stand part of the Bill.

Clauses 29 and 30 ordered to stand part of the Bill.

Clause 31

Provision of railway passenger services

[Jerome Mayhew]

I beg to move amendment 41, in clause 31, page 16, line 30, leave out from “so” to “, in” in line 31 and insert

“by making a direct award of a contract to Great British Railways, a GBR company, or a private business.”

This amendment would allow private sector companies to operate train services on behalf of the Secretary of State.

[The Chair]

With this it will be convenient to discuss the following:

Government amendments 170 to 172.

New clause 6—Repeal of the Passenger Railway Services (Public Ownership) Act 2024—

“The Passenger Railway Services (Public Ownership) Act 2024 is repealed.”

This new clause repeals the Passenger Railway Services (Public Ownership) Act 2024 so that train services can continue to be provided by private companies.

Clause stand part.

Amendment 44, in clause 32, page 17, line 35, leave out subsection (3).

This amendment requires pre-award publication of public service contracts.

Clause 32 stand part.

[Jerome Mayhew]

Clause 31 has a bit more meat to it than the previous half dozen or so clauses. We are looking at the provision of railway passenger services. The clause provides that the Secretary of State may only secure delivery of the passenger services designated under clause 25 through GBR or a GBR company by directly awarding a public service contract to GBR or a GBR company in accordance with regulation 17 of the Public Service Obligations in Transport Regulations 2023.

Similarly, the clause grants Scottish and Welsh Ministers two options for delivering their designated services under clauses 26 and 27: either by providing the services directly or by securing their provision through a direct award of a public service contract to one or more public sector companies, including to GBR or a GBR company, in accordance with the 2023 regulations. The powers to provide services directly could also be used in conjunction with clause 4 to enable GBR to operate services on behalf of Welsh or Scottish Ministers.

Subsection (5) provides that, where passenger services are secured through a contract with a joint venture, subsidiary of GBR or GBR, clauses 7 to 10, 13 and 16 to 18—the directions and guidance and GBR’s duties—apply to the provision of those services in the same way as if GBR was performing the contract itself. Subsection (6) ensures that the relevant Ministers have the power to operate network services, station services and light maintenance services, as well as to store and consign goods transported by rail, to enable their responsibility for passenger services. Finally, subsection (7) provides that the obligation to provide or secure the provision of a service under the clause does not give rise to civil liability for breach of a statutory duty.

There is an obvious elephant in the room. The clause implies that GBR, one of its subsidiaries or the respective devolved Government-run rail operators are the only efficient and permitted provider of rail services. The public sector is the only permitted provider of rail services, but that should not be the case. There are many very efficient providers of rail services that are being excluded even from consideration by the wording of the Bill. There may be some instances where private operations are best placed to offer a service, either now or in the future, where they can drive innovation and growth, just like open access has.

Restricting awards by primary legislation to GBR companies provides damaging constraints on the flexibility of future Secretaries of State. If a circumstance exists in the future where a private sector operator is able to offer a better service for a lower cost to the taxpayer, why should the Secretary of State of the day be prevented by primary legislation from making such an award? What is the rationale that the Minister can come up with, beyond union pressure and the Labour party distrust of profitable businesses? What is the danger that this primary legislation is seeking to protect the rail industry from by removing any ability of the Secretary of State of a future Government to award a private sector contract in any circumstances, including those we may not yet have foreseen? It is clearly a bad decision.

Amendments 41 to 43 grant maximum flexibility to a future Secretary of State, which is surely what we want, as well as to Scottish and Welsh Ministers, to make an award to the organisation best placed to undertake the operation, whether it be public or private. Amendments 42 and 43 were grouped with clause 18, so they have already been debated, but they are relevant to this clause as well. These amendments do not mandate the Government to permit private passenger services; they simply allow them flexibility. There may well be opportunities for the private sector to operate passenger services, and why not combine the very best of public and private and allow that provision to exist under the auspices of GBR? The amendment would allow Welsh and Scottish Ministers to do the same, as flexibility is a very important tool in the Government’s arsenal. It is only right that devolved Governments also have the ability to decide, if they so wish—they are not required to—to have private operators as well.

Our approach allows the principle of private investment driving growth, innovation and expansion to be an element of GBR as it progresses. After all, it will rely on the private sector rolling stock providers for its fleet, and private sector supply chain and infrastructure providers to support its Network Rail function, and presumably it will incorporate other private sector elements around freight and open access, so it is only logical that it allows itself the flexibility to strengthen passenger services by having private sector investment, which is more likely to take risks under the GBR banner.

If the Government disagree with that assessment, I would like to hear their rationale. Why do they accept the private sector in all the other parts of the industry that I have just listed, but believe that this sector alone is required to be protected from the private sector so much that the Government have to use primary legislation to tie the hands of every future Secretary of State in every circumstance?

[Rebecca Smith (South West Devon) (Con)]

My hon. Friend’s comments provoke the question, is it a concern that the lack of flexibility for the Secretary of State will mean that there is no space for private sector companies in this role in the future? Ultimately, given the measures set out in the Bill, and that the opportunity to give access to other private businesses is entirely in the hands of the Secretary of State, it is potentially foreseeable that there could be no private involvement in the future, which would be a problem.

[Jerome Mayhew]

It is a genuine and legitimate concern of private sector rail operators that the tenor of the Bill will design out private sector and open access operators. Through the capacity duty and the ridiculous lack of an appeals process for GBR decisions, they have designed in a structural conflict of interest, in that GBR is both an operator and the quasi-regulator of its own operations. They will be making decisions without an effective appeal right for access and charging of their direct competitors. That is a genuine and legitimate fear, if the Government do not stop and listen to many experts in the industry.

Amendments 41, 42 and 43 would allow private sector companies to operate train services on behalf of the Secretary of State, the Scottish Ministers and the Welsh Ministers, respectively. I will press them to a vote if I get the opportunity.

Government amendments 170 and 171 provide for the Welsh Ministers to have the power to award a public service contract to any public sector company when exercising the Secretary of State’s function under clause 31(1). Government amendment 172 would apparently remove a provision that is unnecessary—I will take the Government’s word for that because I do not have it in front of me.

New clause 6, which is in my name, would repeal the Passenger Railway Services (Public Ownership) Act 2024, as the title suggests, so that train services can continue to be provided by private companies as well as GBR. We have always maintained that the Government should act as the operator of last resort and allow any organisation, public or private, to provide the highest standard of railway services.

We should step back from ideological certainty one way or the other—whether it is about having a nationalised business or a privatised one—and approach ownership structures based on what works supported by data, not intuition. I fear that this Government are driven by ideology, which is very evident in clause 31, and by their union supporters—I wrote down “paymasters”, but I feel that the tone of the Committee would not permit me to make that assertion; we are all too close to each other—to whom they are far too close to insist on nationalisation irrespective of evidence to the contrary. Passenger numbers have exploded under privatisation and there are popular open-access routes. Those are social goods; they are supporting our constituents to have a better experience on the railways. The Government appear to be seeking to deny that for the future.

I do not expect immediate Government support, but new clause 6 makes clear our rejection of the Government’s “nationalisation or bust” approach—it is more likely to be nationalisation and bust. For that reason, I wish to press new clause 6 to a vote.

Clause 32 relates to contracts awarded under clause 31, which we have just been talking about. It provides flexibility for the Secretary of State or the Scottish or Welsh Ministers to include financial arrangements, operational requirements and property-related obligations within the contract. It ensures that contracts can be tailored to meet the operational and strategic needs of the train service, and provides that obligations to publish pre-award information under regulation 22 of the 2023 transport regulations, which we have already referred to, do not apply to direct awards.

The removal of pre-award publications significantly reduces transparency around direct awards. That is a problem because it prevents external scrutiny of value for money and limits the ability of operators or stakeholders to challenge ineffective or poorly structured contracts. This is the public sector not publishing information about cosy contracts with other public sector organisations, thereby not exposing themselves to critique. Where is the transparency here? The explanatory notes merely restate the lack of a publication requirement; they do not justify why this reduced transparency is necessary or what safeguards will exist in its place. The clause means that the private sector will be unable to critique the operations or question the value for money achieved by the public sector negotiating with itself.

Amendment 44 removes clause 32(3). That will require the pre-award publication of public service contracts to facilitate the application of private sector companies in bidding for contracts. It would also allow the private sector to critique the performance of the public sector. Without publication—all too cosy—and with no ability for external challenges on the provision of services or on value for money, we will lack transparency, which, I am afraid, is a theme that has run through so much of our discussions. I will seek to divide on that; it is an important point.

[Olly Glover (Didcot and Wantage) (LD)]

It is a pleasure to serve under your chairship, Mrs Barker. I have some brief comments on the Conservative spokesperson’s amendments.

[Jerome Mayhew]

The shadow Minister; you are the spokesperson.

[Olly Glover]

Apologies. One recognises one’s status.

We agree with the shadow Minister on the principle that it should not be about ideology between the public and private sectors. We have argued that consistently in the past. If it was so simple that nationalising train operators would lead to transformative performance improvements, Northern would be a globally inspiring example. I realised this morning that this month it reaches its half-decade anniversary of being in the public sector and, certainly for friends of mine in the north, it remains some way from being a globally leading example. That highlights the fact that public and private sector ideology is but one factor needed to give excellent rail services.

I wonder whether some of the shadow Minister’s amendments are perhaps fighting yesterday’s war. Of course we should all continue to advocate for what we believe, but it seems unlikely that—in the near future at least—there will be a change in approach to the core train operating companies’ being franchised out. Perhaps, rather than relitigating that, we need to focus on other aspects of the Bill, as indeed he has done, and on how we can make the new world better—particularly by removing the Secretary of State’s ability to interfere too much. I wonder what the shadow Minister and Government Minister have to say about that.

[Keir Mather]

May I begin by saying that I hope the shadow Minister can forgive my initial sluggishness on this drab Tuesday morning, because he asked a perfectly reasonable question about the application of the clause when we debated it last. I did not give him an adequate answer so, if you do not mind me looking retrospectively for a moment, Mrs Barker, I would like to inform him that all existing designations are unconditional. The clause is not there to be used often. However, it replicates an existing power, with the idea being that if the Secretary of State wanted to exempt a service to a new local authority that had not had an exemption before, she might wish to provide a time limit to check how it was performing before granting a longer-term exemption. I hope that is a sufficiently adequate answer to his perfectly reasonable question.

I will now speak to the amendments tabled in my name. Amendments 170 and 171 enable Welsh Ministers to continue securing rail services in the Wales and borders region on behalf of the Secretary of State. Welsh Ministers will do that by contracting Transport for Wales to run the services. That will ensure that passenger services that cross between England and Wales every day continue to connect communities, contributing to economic growth. Without these amendments, the Secretary of State would be forced to abandon existing agency arrangements and procure all the services that she designates exclusively through Great British Railways, including English sections of the services currently operated by Transport for Wales. That is inefficient, and contrary to the collaborative spirit of devolution. This is about making the system work, not creating barriers where none need exist. The amendments were always intended to be part of the Bill, and we are correcting that now. The amendments strengthen the Bill by preserving today’s devolved responsibilities once GBR is established. That will ensure that Transport for Wales can continue running services into England, maintaining reliability for passengers and ensuring connectivity.

The other amendment tabled in my name, amendment 172, is a minor and technical amendment that removes a redundant provision in the legislation. I am grateful to the hon. Member for Isle of Wight East for his parliamentary question in November 2025 regarding the policy rationale for that drafting, which helpfully drew it to our attention. I am pleased to confirm that it is no longer necessary.

Amendment 41 and new clause 6 are intended to reintroduce private sector companies running passenger services. The Government were elected on a clear manifesto commitment to return franchised passenger services to public ownership. Public ownership, with the whole system working to one clear set of objectives to improve reliability, performance and punctuality for passengers, is the only way to make the railway run better. I think we all agree that the current system simply is not working. However, the amendment and new clause seek to undo all the progress we have made so far. They could cause chaos on the railway and return us to the dark days of franchising, which did not perform for passengers or taxpayers. The Bill is not about re-debating the principles of public versus private; it is about getting on with this generational reform and delivering for passengers, freight users and taxpayers.

Finally, amendment 44 would require the Government and Scottish and Welsh Ministers to publish pre-award details of public service contracts at least a year in advance of entering into the contract. As I am sure the hon. Member for Broadland and Fakenham knows, publishing pre-award information a year in advance would be an unnecessary and impractical administrative burden. The focus for public service operators should be on efficient delivery and clear reporting rather than rigid pre-award timelines. The Government will continue to be required to act transparently by publishing relevant information about the contract, such as contract dates and the parameters of financial compensation, within two months of entering into the contract.

Given those points, I urge the Committee to support the amendments in my name and I hope that the hon. Member for Broadland and Fakenham will withdraw, or not move, his amendments. I also hope that the Committee supports clause 31, which sets out how designated services are to be provided, and clause 32, which sets out supplementary provisions for public service contracts awarded under clause 31.

The Bill makes it clear that the Secretary of State may assign responsibility for running her services only to Great British Railways or a GBR company. She can secure the provision of services by first designating them and then making a direct award of a public service contract to GBR or a GBR company. Public service contracts are a typical arrangement between public authorities and transport operators for providing public transport and are compliant with relevant subsidy control requirements. As clause 32 sets out, contracts may include a range of obligations, including those relating to additional railway assets, operational requirements and financial arrangements—for example, how any payments will be calculated, and performance targets.

Scottish and Welsh Ministers may either provide designated services directly in house or secure them through a direct award to one or more public sector companies, such as ScotRail or Transport for Wales. They also have the option to contract with GBR or a GBR company, which could unlock the integration of track and train in Scotland and Wales. Clause 31 also ensures that GBR’s duties apply to services operated by joint ventures or GBR subsidiaries under contract and gives Scottish and Welsh Ministers powers to handle freight goods where necessary.

[Jerome Mayhew]

The Minister’s response demonstrates an extraordinary lack of confidence by the Government in the efficacy of nationalisation—the very thing that they are seeking to promote in the majority of the Bill. All that amendments 41 to 43 would do is give the Secretary of State flexibility by making them able by law, in certain circumstances, to give a contract for passenger services to the private sector. They would not require it; they are not saying that this is a battle between privatisation and nationalisation. The only ideological battle here is by the Government, who are saying that it is impossible to conceive of any circumstance in which a private business might be able to offer better value for money for the taxpayer and a better service for passengers than a nationalised part of GBR. They are so concerned that a private business might be offered that opportunity, because they are overwhelmingly better, that they are seeking to legislate to tie the hands of every future Secretary of State.

[Laurence Turner (Birmingham Northfield) (Lab)]

Would the shadow Minister follow the logic of his argument as far as to say that the Conservative Government that passed the Railways Act 1993 were ideologically motivated and acted in an ideological manner, given that that Act barred the public sector from taking on franchises?

[Jerome Mayhew]

I was 23 at the time, and I certainly was not following every clause of the 1993 Act as it went through the House—I accept that that shows a shocking lack of dedication to my future career. We can re-argue the battles of the early 1990s or we can seek to learn from the mistakes of the past, if the hon. Gentleman claims that they are mistakes, but let us not repeat them in the opposite direction, which is exactly what the clause is intended to do. If he is right that that was a mistake then, on his own logic, it is equally right that this is a mistake, and I look forward to him supporting me as we vote on amendment 41.

Question put, That the amendment be made.

--- Later in debate ---

[Jerome Mayhew]

I beg to move amendment 45, in clause 33, page 18, line 9, leave out subsections (1) and (2).

This amendment removes the Secretary of State’s ability to give directions and set guidance as to the general level and structure of railway fares.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 148, in clause 33, page 18, line 9, leave out subsection (1).

This amendment removes the power to give binding directions over fares.

Clause stand part.

[Jerome Mayhew]

The clause sets out that the Secretary of State or Scottish Ministers’ power to give directions to GBR under clauses 7 or 8 may be exercised to give a direction relating to fares. That direction could cover the general level and structure of fares that the Secretary of State or Scottish Ministers expect to see on the passenger train services that GBR is running on their behalf. Likewise, the Secretary of State or Scottish Ministers can use the power in clauses 9 or 10 to issue guidance about the general level and structure of fares. Clause 33(3) also allows for provision about the general level and structure of fares to be set out in the public service contract under clause 31, which we have just debated. That allows Ministers to manage overall fare levels on their designated services.

Clause 33 centralises control of fares in the hands of the Secretary of State, allowing Ministers—not GBR—to determine the general level and structure of fares. That cuts directly against the idea that GBR will operate as an independent guiding or directing mind, and leaves the organisation responsible for outcomes that it does not control. The clause provides no statutory principles, tests or transparency requirements for how fare decisions should be taken—by the Secretary of State, presumably —and recent written parliamentary questions 84697, 86756 and 86754 underline the risk built into the model. In response to the questions, Ministers were unable to define what the “right” fare means, they were unable to say which fares will go up or down under GBR, and they confirmed that all future fare decisions remain entirely at ministerial discretion.

If Ministers are to retain that power, the Bill needs at least a duty to publish the assumptions, criteria and objectives underpinning fare setting, so that decisions can be assessed against passenger growth and affordability. At the moment we have none of that. The clause is in complete contradiction to the assertion in the explanatory notes that the Secretary of State’s directions

“are intended to be used as a responsive tool for necessary course correction, rather than as a proactive tool to set requirements on GBR”,

or in other words,

“they are a last resort”.

The clause says, “No, that’s absolute rubbish. We’re not doing that. We’re keeping in the hands of the Minister the power to guide and then direct and establish what the right fares are.”

[Daniel Francis (Bexleyheath and Crayford) (Lab)]

Does the shadow Minister accept that in recent years, when Transport for London was negotiating its fare settlements, the previous Government dictated the level of fares that should be charged not just for the congestion charge, but for passenger rail services? The Conservative Secretary of State and Government were doing that very thing in negotiations with Transport for London for rail passenger services in London.

[Jerome Mayhew]

I think we have to decide what GBR is going to be. Is it going to be a stand-alone organisation that is trying to run itself efficiently, providing value for money for the taxpayer and hopefully, one day, a check on the Secretary of State? Or is it going to be a creature of the Department for Transport that is told what to do and having its decisions second-guessed? This is a big decision that the Government have to take.

The clause creates a huge risk of stasis, as GBR gets bossed around and becomes a passive recipient of instructions from the Department for Transport. I worry that it is a recipe for future disaster, so I have questions for the Minister. What factors will the Secretary of State take into account when deciding the general level and structure of fares? Why is the Secretary of State in a better position to take those decisions than GBR is, given the objects that she has set the organisation? What additional information will she use that is not available to GBR? I will be grateful for the Minister’s answer. At least it is clear that any future failure of the railways will be down to the Department for Transport and the Secretary of State, not to GBR, since the power to guide and then direct and then set fares lies expressly with the Secretary of State.

My amendment 45 would remove the Secretary of State’s ability to give directions and set guidance as to the general level and structure of railway fares, thereby preventing ministerial intervention in how fares are set and making that decision separate from political influence. When considering amendment 45, Rail Forum said:

“We support this as it should be for GBR, as an arm’s length body and the directing mind, to determine fares not the Secretary of State.”

Amendment 148 in the name of the hon. Member for Didcot and Wantage would remove the power to give binding directions over fares—another version of our approach.

The clause as drafted is overreach by the Department for Transport and exactly the kind of micromanagement that the Minister claims will not happen. Why do we need these powers?

[Edward Morello (West Dorset) (LD)]

It is an honour to serve under your chairship, Mrs Barker.

As the shadow Minister outlined, amendment 148 tabled by my hon. Friend the Member for Didcot and Wantage is not overly dissimilar to Conservative amendment 45 in what it tries to achieve, but I will come at it from a slightly different angle. Clause 33, as drafted, gives the Secretary of State the power to issue binding directions to Great British Railways on the level and structure of fares. We have said many times that the Bill already grants the Secretary of State extensive influence over GBR. Allowing binding directions on fares risks tipping that influence into outright micro-management. It opens the door to the imposition of short-term political decisions, rather than long-term, evidence-based decisions about fares being made by those responsible for actually running the railways. It is a tool that can be misused, particularly in times of fiscal or political pressure.

Even if the current Government assure us that they would not misuse the power, the problem is that once it exists, it exists for all future Governments. I hope the Government will recognise the inherent risk in that and support amendment 148, thereby preventing not only themselves but all future Secretaries of State from being able to abuse the power.

--- Later in debate ---

The new approach will reduce complexity, improve transparency and reset the fares system that is currently failing this country. I therefore commend clause 33 to the Committee.

[Jerome Mayhew]

I am wholly unpersuaded. The Minister did his best, but he cannot hide from the huge disparity between setting up a stand-alone arm’s length business, which is meant to run itself efficiently and with dynamism, and taking away its revenue-driving function. It is ridiculous. We will end up with an organisation that is second-guessed by the Department for Transport. We all say it is the Secretary of State, but of course it is not; it is many hundreds of DFT officials. They will each no doubt do their best as they see it, but they will be second-guessing the role of the industry organisation. That is not a recipe for an effective management structure, and I will push amendment 45 to a Division.

Question put, That the amendment be made.

--- Later in debate ---

Discount fare schemes

[Jerome Mayhew]

I beg to move amendment 46, in clause 34, page 18, line 20, after “are” insert “UK veterans,”.

This amendment, alongside Amendments 47 to 50 would require GBR to continue to offer discounted rail fares for veterans.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 51, in clause 34, page 18, line 20, after “are” insert

“members of the UK armed forces and their families,”.

This amendment, along with Amendments 52 to 55, would require GBR to continue to offer discounted rail fares for members of the UK armed forces and their families.

Amendment 47, in clause 34, page 18, line 28, after “are” insert “UK veterans,”.

See explanatory statement for Amendment 46.

Amendment 52, in clause 34, page 18, line 28, after “are” insert

“members of the UK armed forces and their families,”.

See explanatory statement for Amendment 51.

Amendment 48, in clause 34, page 18, line 31, after “are” insert “UK veterans,”.

See explanatory statement for Amendment 46.

Amendment 53, in clause 34, page 18, line 31, after “are” insert

“members of the UK armed forces and their families,”.

See explanatory statement for Amendment 51.

Amendment 49, in clause 34, page 18, line 35, after “are” insert “UK veterans,”.

See explanatory statement for Amendment 46.

Amendment 54, in clause 34, page 18, line 35, after “are” insert

“members of the UK armed forces and their families,”.

See explanatory statement for Amendment 51.

Amendment 50, in clause 34, page 19, line 4, after “are” insert “UK veterans,”.

See explanatory statement for Amendment 46.

Amendment 55, in clause 34, page 19, line 4, after “are” insert

“members of the UK armed forces and their families,”.

See explanatory statement for Amendment 51.

Clause stand part.

New clause 51—Remembrance Sunday ticket fare exemption—

“(1) The Secretary of State must make regulations which require Great British Railways to provide a scheme enabling persons under subsection (2) to travel for free on railway passenger services to and from events that commemorate Remembrance Sunday.

(2) Regulations under this section must include a person who—

(a) is a member of the armed forces;

(b) has been a member of the armed forces; or

(c) is a widow, widower, or one direct family member of any member of the armed forces who has died in the course of their service.

(3) Regulations under this section must apply the provision of paragraph (2)(c) in such a way that one person is entitled to free travel for each member of the armed forces to which that paragraph applies.

(4) ‘armed forces’ as set out in subsection (2) means any of His Majesty’s forces (within the meaning of the Armed Forces Act 2006).”

This new clause would require the Secretary of State to make a travel fee exemption for journeys to and from Remembrance Sunday events for armed forces personnel, armed forces veterans and one representative of a deceased armed forces member across all Great British Railways passenger services.

New clause 59—Police officer fare exemption—

“(1) The Secretary of State must make regulations which require Great British Railways to provide a scheme enabling police officers and Police Community Support Officers (PSCO) under subsection (2) to travel for free on railway passenger services.

(2) Regulations under this section must only make provision for police officers who—

(a) present a valid warrant card or PCSO designation card,

(b) are in full uniform or are undertaking such travel for operational purposes.

(3) Regulations under this section are subject to the affirmative resolution procedure.”

This new clause requires all rail operators to permit free travel for police officers on all passenger services, subject to certain requirements.

[Jerome Mayhew]

The clause requires GBR to provide a discount fare scheme for passengers who are “young, elderly or disabled”—that is it—to ensure they can access cheaper rail fares and tickets. I recognise that the clause does not limit GBR to only those discount schemes, and it can create other schemes that provide for cheaper fares and tickets at its discretion, but these are the only mandatory schemes, so they identify where the Government’s priorities lie: the young, elderly or disabled.

The use of discount fare schemes may be subject to conditions. The clause ensures that discounted fares for the young, elderly or disabled are made available on any services designated by Scottish and Welsh Ministers, as well as on services provided by GBR. It is remarkable that subsection (1) preserves statutory discount schemes only for young, elderly and disabled passengers. The veterans railcard remains entirely outside statute, meaning that it can be changed or withdrawn without parliamentary oversight. Given the strong precedent in the 1993 Act for protecting key concessionary schemes in law, the Bill is a missed opportunity; it is not just a carry-over. In fact, it is an active decision not to give veterans the same statutory guarantee and long-term security as under existing railcards.

Subsection (3) allows any set of conditions to be applied to a scheme, so the whole clause is functionally meaningless without sight of the conditions. We do not know what they are; it is another bit of work the Government have not done. It could be one service, once a month. That risks hollowing out the statutory concession entirely, allowing GBR to comply in form while restricting access in practice.

Amendments 46 to 50 would require GBR to continue to offer discounted rail fares for veterans. Will the Minister support the amendments, or will the Government demonstrate by their actions that they do not rate veterans’ discounts to be as important as the other discount groups? I will look to divide the Committee on every one of the amendments, because this is a politically sensitive issue.

Amendments 51 to 55 would extend consideration to the immediate families of veterans. They would require GBR to continue to offer discounted rail fares for members of the UK armed forces and their families. Again, this is a political issue, so I wish to divide on all the amendments, but I hope that we can be quick.

I will not speak to new clause 51, but new clause 59, in the name of the hon. Member for Didcot and Wantage, would require all rail operators to permit free travel for police offers and police community support officers, if they are in full uniform and travelling for work. It is a noble calling, but where do we stop? If they are travelling to work, they will be reimbursed by the constabulary. No officers commute to work in uniform, for security reasons, so I do not support the new clause.

[Olly Glover]

We understand and support the intent of the Conservative amendments on veterans, but I suppose the debate will get into what should be legislated for in discount schemes, as opposed to specified in other forms. It will be interesting to hear from the Minister why the Government have opted to put certain discount schemes in the Bill and not others. Hopefully, there is some clear logic, but we shall see.

Our new clause 51 would require the Secretary of State to make a travel fee exemption for journeys to and from Remembrance Sunday events for armed forces personnel, armed forces veterans and one representative of a deceased armed forces member across all GBR passenger services. The context is that there is currently an agreement in place for that travel fee exemption, which is agreed by the Secretary of State and the train operating companies. The new clause would simply formalise something that already happens, but would do so in the framework of GBR and ensure long-term certainty and consistency, national coverage across the GBR network and the inclusion of a representative of a deceased service member. At present, deceased personnel are often not represented at Remembrance events if a family member cannot afford the cost of travel. The new clause addresses that inequity. 

The new clause places an existing informal arrangement on a statutory footing and ensures consistency and fairness. The cost implications are limited and predictable, as the travel demand is concentrated around a single annual event and largely happens on that day. The new clause recognises the importance of remembrance for bereaved families and sends a clear message of respect and recognition for service and sacrifice.

On our new clause 59, I understand the shadow Minister’s points, but the intention is simply to reduce red tape and bureaucracy. This is about officers needing to use the train in the course of their duties. It is important that many of them do so, particularly those engaged in highly visible community policing. The new clause would simply reduce the red tape and bureaucracy of them needing to buy tickets, procure travel warrants and so on. It is not about travel to and from work, but about making sure they can easily use the network while on duty.

--- Later in debate ---

[Keir Mather]

As I have just mentioned, we want to carry over those schemes to provide consistency for those groups. We are carrying over the role of the discretionary schemes as set out in legislation. We think that consistency is important but, for reasons that I will come to later, we also believe it is important that GBR is able to move in an agile way and think about evolving needs when it comes to concessionary travel. It is important, in terms of legislative carry-over, to ensure that that remains in place.

[Jerome Mayhew]

The Minister says that he wants GBR to remain agile, but does he foresee a situation in which it is agile by removing the veterans railcard? If he says no, as I suspect he will, why does he not put that on the face of the Bill and support our veterans?

[Keir Mather]

For the reasons I have just outlined. I have already confirmed that there are absolutely no plans to change the existing range of discount schemes, which include the veterans railcard and the armed forces railcard.

--- Later in debate ---

[Keir Mather]

While I do not anticipate provision around the specific instance the hon. Lady described—for example the poppy train being frozen into the licence of GBR—I do expect that GBR will be minded and motivated to continue to ensure that members of the armed forces community, veterans and their families can attend Remembrance Sunday services across the country. In our view, concessionary travel more broadly will improve the ability to do that. It will allow GBR to set provisions in an agile manner through an evolving concessionary fares scheme, rather than freezing them as part of the Bill—and, moreover, to set provisions that are not already locked into legislation and do not therefore need to be carried over, in the interest of consistency for the groups that they affect.

Turning back to my remarks on Poppy Day volunteers travelling to events with their children, I do look forward to that policy continuing in the years to come, although precise arrangements for how that will work will be confirmed closer to the time. All that being the case, we do not see the need for legislative amendments. These are things that the Government and rail industry already strongly support and have been providing for many years. A regulatory framework would only complicate delivery, which is more effectively facilitated at the operational level, so, while we wholeheartedly support the spirit of new clause 51, I urged the hon. Member for Epsom and Ewell to withdraw it.

New clause 59 requires GBR to provide a scheme enabling free rail travel for police officers and police community support officers who are in full uniform or who are travelling for operational purposes. The Government gratefully acknowledge the service of police officers across the country and all that they do to keep us safe. The speed, skill and professionalism of the response by British Transport police and other brave first responders to the horrific train attack in Huntingdon last year is just one example of how police officers and all our emergency services save lives every day across our country.

While I understand the intention of the new clause in supporting that vital work, the Bill is not the correct place to set out the requirements for such a scheme. As the hon. Member for Didcot and Wantage knows, any new staff travel scheme should be the product of negotiations between the relevant organisations. To prescribe a scheme in primary legislation sidelines that process and risks the creation of a scheme that is not fit for purpose, as well as unfunded financial impacts to the railway. Therefore, while I am sympathetic to the intentions of the new clause, the Bill is not the appropriate avenue to establish such a scheme, and I urge the hon. Member not to move it.

Clause 34 ensures that GBR will be able to provide discount schemes, such as those offered today as railcards. First, the clause continues the 1993 Act’s statutory protection for young, senior and disabled passenger discounts. Prices are historically more likely to be a barrier to these groups’ accessing rail travel, and they are covered by the protected characteristics of age and disability. Maintaining these concession schemes in primary legislation supports equal access to employment, education and essential services. It is worth noting that, while other concessionary discounts are not included in the Bill, the Government recognise that they too are important, and there are no plans to withdraw any of the discounted schemes currently being offered.

Nevertheless, the clause also gives GBR the flexibility required to simplify and modernise discount schemes across the network, and to evolve the offer where that is considered desirable to meet passenger needs in the future. Finally, the clause ensures that devolved operators will still be required to offer the core statutory discounts, and that they will have flexibility over whether to participate in the GBR scheme or to create their own.

[Jerome Mayhew]

It is extraordinary that the Government say, on the one hand, that age and disability need to be included in primary legislation, but on the other hand that it is totally unnecessary to have the same security for veterans. We on the Conservative side of the House do not accept that logic and we will be pushing amendments 46 to 55, individually, to votes.

Question put, That the amendment be made.

--- Later in debate ---

Division 52

Question accordingly negatived.

Ayes: 6

Noes: 9

[Jerome Mayhew]

I beg to move amendment 56, in clause 34, page 18, line 20, after “are” insert “aged 26-30,”.

This amendment, along with Amendments 57 to 60, would require GBR to continue to offer discounted rail fares for young people aged 26-30.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 57, in clause 34, page 18, line 28, after “are” insert “aged 26-30,”.

See explanatory statement for Amendment 56.

Amendment 58, in clause 34, page 18, line 31, after “are” insert “aged 26-30,”.

See explanatory statement for Amendment 56.

Amendment 59, in clause 34, page 18, line 35, after “are” insert “aged 26-30,”.

See explanatory statement for Amendment 56.

Amendment 60, in clause 34, page 19, line 4, after “are” insert “aged 26-30,”.

See explanatory statement for Amendment 56.

[Jerome Mayhew]

This should be a short debate, since amendments 56 to 60 serve a single function: to defend the long-term provision of discounts for 26 to 30-year-olds. Although clause 34 refers to discounts for the young, there is potential for the definition to exclude discounts for 26 to 30-year-olds—and that is young to me, at least. Amendments 56 to 60 would require GBR to continue to offer discounted rail fares for young people in this age group. Given the Government’s willingness to identify some characteristics as worthy of discounts in primary legislation—the young, elderly or disabled—what is the principled objection to including other, equally worthy groups? I will press the amendment to a Division.

[Keir Mather]

I thank the hon. Member for tabling the amendments, which would place a statutory duty on GBR and on Scottish and Welsh Ministers to ensure that discounted rail fare schemes are available for persons aged 26 to 30—I do not know whether I should declare an interest, as a holder of one of those railcards.

The Government have stated that there are no plans to change the existing range of discount schemes, including the 26-30 railcard, but we do not consider it necessary or appropriate to list specific age ranges in the Bill in the way proposed. Listing specific age ranges would be unnecessarily inflexible. The Government are absolutely committed to retaining discount schemes for younger people; however, much of the current discount system is fragmented due to its origin in the franchising system, so GBR may want to rationalise the existing range of discount schemes currently targeting younger people to simplify duplicative and overlapping offers and age ranges between 16 and 30, for example, as part of introducing a modernised, more consistent offer for passengers.

Given that Acts of Parliament are drafted to last a generation or more, placing specific age ranges in the Bill would likely remove those opportunities and potentially limit opportunities for young people. For those reasons, I urge the hon. Member to withdraw the amendment.

[Jerome Mayhew]

The Minister says that he wishes to have flexibility. The whole point is that we are trying to remove flexibility, so that GBR cannot take away discounts for 26 to 30-year-olds in the future. The Minister’s argument actually increases my concern that that is a realistic prospect in the Government’s mind, and I feel even more strongly that we should divide in order to ensure that discounts for 26 to 30-year-olds are protected in the long term.

Question put, That the amendment be made.

--- Later in debate ---

Division 53

Question accordingly negatived.

Ayes: 6

Noes: 9

[Jerome Mayhew]

I beg to move amendment 61, in clause 34, page 18, line 25, leave out subsection (3).

This amendment would remove GBR’s ability to set unrestricted conditions about discounted fares.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 62, in clause 34, page 19, line 10, leave out “lower fare” and insert

“fare that is one third lower”.

This amendment would ensure that discounted fares remain at one third off the price of a standard fare.

New clause 13—Report on the potential merits of customer loyalty programmes—

“(1) Within twelve months beginning on the day on which this Act is passed, the Secretary of State must lay before Parliament a report on the potential merits of customer loyalty programmes for rail passengers (‘rail miles programmes’).

(2) A review under this section must consider any beneficial effect on the growth of rail passenger numbers of introducing rail miles programmes.”

This new clause would ensure the Secretary of State conducts a report into potential benefits of a “rail miles” programme for passenger numbers.

[Jerome Mayhew]

Amendment 61 would remove GBR’s ability to set unrestricted conditions about discounted fares. The amendment probably goes too far, so I will treat is as a probing amendment to flush out what conditions the Minister anticipates will be imposed under subsection (3). Will the Minister undertake that the intention is to minimise constraints on discounts, to afford maximum advantage to the groups that discount schemes are in place to promote? I would be grateful if he could clarify the Government’s position on that.

Amendment 62 would ensure that discounted fares remained at one third lower than the price of a standard fare. That would give certainty to those currently using the variety of railcards mentioned above that their discount will remain the same. The Government claim that GBR will bring savings; all the amendment does is prevent discounted fares from costing more. If the Government do not support the amendment, they would be paving the way for GBR to reduce focus on the passenger and revert to the typical standard of a nationalised organisation, where you get what you are given and expected to be grateful for it.

New clause 13, in the name of the hon. Member for Didcot and Wantage, would ensure that the Secretary of State conducted a report into the potential benefits of a rail miles programme for passenger numbers. That is an idea—but in our view, it is not one that should be included in primary legislation. It is qualitatively different from discounts for veterans and young persons.

[Daniel Francis]

I again declare my interest as chair of the all-party parliamentary group for wheelchair users.

Amendment 62 appears to refer not to railcards but to all ticketing. As I have said, it would result in an increase for many tickets for wheelchair users and blind and visually impaired people. As the parent of a child who is a wheelchair user, I know that the discount on a ticket for wheelchair users is 75%, and it is the same for an adult day return. For blind and visually impaired users the discount on an adult day return is 50%.

Some discounts also apply to the carer or companion of the wheelchair user or blind or visually impaired passenger. That provision is not included in the Bill, yet the Opposition thought it was more important to table an amendment to introduce a discount for 26 to 30-year-olds than to table one on a discount for the carer of a wheelchair user or blind or visually impaired passenger. I anticipate that the Government will confirm that the discount remains for carers and companions, and in my mind that does not need to be included in the Bill. I certainly do not support amendment 62, as it would undo the current, more generous discount arrangements for wheelchair users and blind or visually impaired passengers, and cause an increase in their fare.

[Jerome Mayhew]

This may shock the Committee, but I listened carefully to the hon. Member for Bexleyheath and Crayford, and his expertise has exposed a lack of knowledge on my part. I was not aware that the discount in that circumstance was in excess of one third. Given that, I will not press the amendment to a vote. I am grateful for his contribution.

[Olly Glover]

I will speak briefly about the Conservative amendments. I agree with some of the shortcomings identified by the shadow Minister, but there would be a risk in setting in stone some of the current discount and fares arrangements, as amendment 61 seeks to do.

On amendment 62, apart from the good points made by the hon. Member for Bexleyheath and Crayford about the existing differential discount rates, I am not sure of a particularly compelling reason for why the main discount rate of one third should be preserved in aspic—I said that I would not say “aspic” any more, but I have anyway. There may be times in the future when a higher discount, or maybe even a lower one, could make sense.

I assure the shadow Minister that our new clause 13 would require the examination of the idea, rather than a commitment to do it. Our idea is based on the ubiquity of air miles as a highly valued consumer product. So many people talk about air miles in conversation, and the popularity of certain credit cards—I can probably name them, as I do not have an interest, but I will not—is explained by the accumulation of air miles. Why not rail miles? It would promote our network, reward loyal customers and be a brilliant way of promoting domestic tourism, were people able to accumulate rail miles as they currently can air miles. It would also be a good way to promote lower-carbon transport.

Our new clause would simply require the examination of the idea of a rail miles programme, and the production of a report on its potential merits that the Secretary of State would lay before Parliament within 12 months of the passage of the Bill. I hope to hear the Minister’s warm words about the idea, although I would naturally be astonished if he embraced it.

--- Later in debate ---

To achieve the benefits of establishing an expert body to run the railways, we are reliant on allowing it to have the scope to do so. The benefits will not be achieved by constraining GBR’s ability to consider the railway holistically or by developing ad hoc policy via amendments. But the points made by Opposition Members provide a lot of food for thought—or a lot of gin for thought, I suppose. I urge Members to withdraw their amendments.

[Jerome Mayhew]

As I intimated, I am happy to withdraw amendment 61, which is more of a probing amendment, and I will not move amendment 62. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[The Chair]

We now come to amendments 47 to 50 and 52 to 55. Divisions are granted at the discretion of the Chair. Although I understand the importance to the hon. Gentleman of the principle of the amendments, the Committee has already made a decision on the principles, so I am not inclined to allow further Divisions.

[Jerome Mayhew]

In the normal course of events I would not seek to have repeated amendments on variations of a theme. However, this matter is politically salient because it deals with a live political issue between the parties on discounted fares, and whether the Government support veterans and veterans’ families. Each amendment deals with a separate part of the veteran community and also with veterans’ families. It is important that we hear the Government’s view through Divisions on every single one, so I ask you to reconsider your determination, Ms Barker, because of the political salience of the individual Divisions. I am sure you will have noticed that in other areas I have been co-operative, and that I do not cause Divisions just for the sake of it, but I ask you to allow Divisions on this occasion.

Amendment proposed: 47, in clause 34, page 18, line 28, after “are” insert “UK veterans,”.—(Jerome Mayhew.)

See explanatory statement for Amendment 46.

Question put, That the amendment be made.

High Speed Rail (Crewe - Manchester) Bill

Jerome Mayhew Excerpts

Carry-over motion
Monday 2nd February 2026 Commons Chamber

[Jerome Mayhew (Broadland and Fakenham) (Con)]

I echo the Secretary of State’s thanks for what must have seemed a very thankless task in the Select Committee.

This is a slightly odd legislative vehicle, but the motion is a practical mechanism used by the last Government to allow for continued progress on railway improvements to create Northern Powerhouse Rail, and it was moved across three Sessions of Parliament. The Conservative Government of the day decided to carry over this Bill to use it as a wrapper to support Northern Powerhouse Rail. The project was championed by my right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak) during his Administration, so it is no surprise to me that the Government have followed his lead in their proposal to carry it over again.

Back in May 2024, Parliament reduced the scope of a much wider Bill to focus solely on NPR, so the issue now before this House is in fact a very narrow one: whether there is a collective will to progress development of a roughly 15-mile stretch of track as part of this Government’s plans to progress Northern Powerhouse Rail.

The House is also being asked to agree to the establishment of a new Select Committee. That obviously matters because the Bill is a hybrid Bill, and it is through the Select Committee process that outstanding petitions from those directly affected will be considered. It is also the structure through which any additional provisions brought forward by the Government to reshape the Bill will be scrutinised, and those newly affected, if there are any, by any proposal will be given the opportunity to be heard. If this Bill is to be properly repurposed, it clearly makes sense that the work of the associated Select Committee carries on.

The Opposition accept the rationale for allowing the current process to survive the end of this parliamentary Session to give the Government further time to continue their work. However, while we agree that they should continue with the Bill, it is with increasing concern that I look at the lack of progress they are actually making. We are a year and a half into the Labour Administration, and all we got a couple of weeks ago was a fanfare announcement that Labour would commission consultants’ reports on how Northern Powerhouse Rail could be built. There are not just a few reports, but £275 million of reports every year of this Parliament—£1.1 billion of them—but no sign of any significant building works.

Real progress has been kicked down the road, perhaps because the Secretary of State knows that she does not have the money to do what she has promised. His Majesty’s Treasury has capped Northern Powerhouse Rail at £45 billion, yet that was the claimed cost back in 2019. That was before covid, since when, as we all know, costs have soared. She knows that she does not have the money, so she distracts her Back Benchers with castle-in-the-air planning, with the taxpayer picking up the bill. I asked the Secretary of State a fortnight ago for clarity, transparency and even an indication of how the funds were to be reconciled, and she huffed and she puffed, and said she would not be lectured, but she did not answer the question. We are none the wiser as to how the Government expect to fill the gap. What cuts will she be forced to make, and are they to the high-speed section? Perhaps she could tell the House today.

It would have been better for the public to have had such clarity nearly three weeks ago than the spectacle of the Secretary of State signing bits of paper on her rail tour of northern cities. We want to see these schemes come in on budget and in a timely manner, and addressing local concerns so that communities are not just spoken to, but listened to. To get the best possible result for taxpayers, the Government need to avoid overly onerous environmental mitigations that impose huge costs for minimal benefit. They talk of deregulation to speed up the process, but where is the action to deregulate?

We need to see the Government choosing supply chains based on cost and performance, with value for money for the taxpayer right at the heart of their decision-making process, bringing costs down while speeding up construction. However, the Government are not doing this hard work, and we need a Government with sufficient backbone to be honest about what they can afford to achieve. There is no sign of that. It is on actual delivery that this Government will be judged—not just by me and by the Opposition, but by the public, who, right now, are being let down.

[Madam Deputy Speaker]

I call Grahame Morris.

--- Later in debate ---

[Heidi Alexander]

This has been a good debate and I am very grateful to all right hon. and hon. Members who have contributed. As I said in my introductory remarks, I believe that these motions represent an important step forward in delivering Northern Powerhouse Rail. As my hon. Friend the Member for Easington (Grahame Morris) said, these plans will deliver faster, more frequent rail connections between fast-growing city regions in the north, which will enable more jobs, new homes and a greater number of opportunities for businesses to invest and expand.

I would like to pick up on some of the remarks that have been made tonight. I welcome the recognition by the shadow Minister, the hon. Member for Broadland and Fakenham (Jerome Mayhew), that this is a practical mechanism for taking forward work on Northern Powerhouse Rail in the north-west of England. I have to say, however, that I fundamentally disagree with his characterisation of this Government’s commitment to Northern Powerhouse Rail. I would say gently to him that it is a bit rich for someone from a party that first talked about Northern Powerhouse Rail in 2014 to criticise this Government for investing more than £1 billion in this spending review, which is significantly more than the hon. Gentleman’s Government ever did in the years since 2014. It was his party that was guilty of dither and delay when it came to improving rail infrastructure in the north of England.

The shadow Minister claims that the Government are going to be spending significant money on consultants, but the money we allocated in the spending review is to acquire land and do preparatory works on the Yorkshire schemes—those three corridors improving links into Leeds from Bradford, York and Sheffield—as well as to plan properly. To pick up the point made by the Lib Dem spokesperson, the hon. Member for Didcot and Wantage (Olly Glover), we will not be making the same mistakes as the previous Government—we will not be letting contracts when we have not defined the scope of works. If the shadow Minister wants to understand why billions of pounds-worth of taxpayers’ money has been wasted on HS2, he needs to ask some of his colleagues some serious questions as to why his Government gave the go-ahead to HS2 when they did not know what they were asking the contractors to build.

[Jerome Mayhew]

I am the first to accept that there are serious lessons to be learned from the delivery of HS2. However, the Secretary of State has so far failed to mention how she proposes to deliver all that she has promised within a financial cap of £45 billion, given that the estimate for the works back in 2019 was, I think, £46 billion—from memory. What is she not going to do in order to stay within the Treasury’s £45 billion cap?

[Heidi Alexander]

As I thought I made clear when I gave my statement on Northern Powerhouse Rail to the House a couple of weeks ago—the shadow Minister made some sarcastic comments about my visit to each of the directly elected mayors along the northern growth corridor—we have agreed that those mayors and areas will be making local contributions to this scheme. We are ambitious with our plans for a “turn up and go” railway in the north of England, and we are going to get on with it—unlike his Government, who never did.

The right hon. Member for Tatton (Esther McVey) gave us some colourful descriptions of what she thinks this rail scheme is all about, but she could not be more wrong. As I said, we have worked closely with leaders in the north of England and have a sequenced, credible, phased investment plan for how we will improve those rail services so that people are not stood on platforms when they miss a train, worrying that the next one is going to take an hour to arrive.

Railways Bill (Seventh sitting)

Jerome Mayhew Excerpts

Committee stage
Thursday 29th January 2026 Public Bill Committees

[Rebecca Smith (South West Devon) (Con)]

It is a privilege to serve under your chairmanship, Mr Western. I will speak to a few of the amendments and new clauses, including those tabled by my hon. Friend the Member for Broadland and Fakenham, as well as some of those tabled by the Liberal Democrats, because some of their ideas are worth noting.

It is obvious why I would support amendment 224, which yet again seeks to include in the Bill more mention of rail freight. As someone who is keen on looking at how we can use rail, and even sea, for freight, I emphasise the necessity of ensuring that it is a central part of the Bill. The Government speak about wanting to tackle climate change and bring net zero into play, but that will be hampered if the rail freight network is not strongly represented in the Bill. I appreciate that the Minister will say that it does mention rail freight, but we do not feel it is explicit enough, and we want to ensure that we get it nailed into the Bill wherever we can.

Amendments 260 and 261 in the name of my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer) would require the rail strategy to consider local need, in particular in respect of level crossings and integrated transport. That is something that the Select Committee on Transport, which I am a member of, is also looking at. Indeed, we had our first hearing on integrated transport yesterday, and one thing that came across strongly to me was that we should really have been looking at an integrated transport strategy before this Bill was introduced, because how rail and buses—I have had the privilege of serving on Bill Committees on both subjects—slot into such a strategy is really important. Therefore, having something on the face of the Bill that pushes towards ensuring that we have regard for integrated transport is important.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

My hon. Friend is quite right that we need to look at modal interoperability. Does she agree with my hon. Friend the Member for Runnymede and Weybridge that a level crossing in a conurbation has a negative impact on road use and, in some instances, cuts one side of a town off from the other? Is he right, as I suggest he is, that that should be part of GBR’s consideration?

[Rebecca Smith]

Yes, absolutely. Indeed, amendment 260, tabled by my hon. Friend the Member for Runnymede and Weybridge, would require the forthcoming rail strategy to have specific regard to level crossings. Fortunately, I do not have anything like what my hon. Friend the Member for Broadland and Fakenham describes, where a level crossing splits an entire town in half, but I presume that the Government will not want to invest in bridges everywhere there is a level crossing, so having at least some regard for level crossings in the rail strategy, and ensuring that one thing does not negate the other, will be essential. I entirely agree with my hon. Friends.

Amendment 137, in the name of the hon. Member for Didcot and Wantage, relates specifically to rural communities, and no doubt it overlaps with amendment 260. Like my right hon. Friend the Member for Melton and Syston, he has highlighted the importance of good rail connectivity in our rural communities. Again, that came up in the Transport Committee’s oral evidence session yesterday: how do we make sure that we are not just weighting the system in favour of urban areas, and make sure that due and serious regard is given to rural communities? My rural community has only one station, and we are keen to see more stations that will serve rural communities, both in my constituency and others. But ultimately, if we really want to see that modal shift away from cars to the railway, we have to make sure that everybody stands a fair chance of accessing it.

I will turn to new clauses 28 and 29, again in the name of hon. Member for Didcot and Wantage. The first is about technology and the need for connectivity on the railway. As somebody who does the right thing and uses my mobile phone rather than Great Western Railway’s wi-fi to connect to the internet—because that is what the parliamentary security people tell me to do—I am entirely reliant on my 4G network to work on the train. I sit there for three and a half hours one way and three and a half hours back, if I am lucky—I have that to look forward to later on today—and I rely on that time to complete my work. I am sat in Bill Committees half of the week, so that time on the train, doing my constituency work and reading in preparation for this Committee, is essential. When there is no decent wi-fi or 4G connection, that is a problem.

I am sure the Minister is well aware of the very exciting pilot that GWR has been doing using Formula 1 technology, which is right up my street, as those who know me well will appreciate. It is excellent. Effectively, it uses that thing no one likes because it technically belongs to that American Musk guy—is it Skylink?

[Jerome Mayhew]

Starlink.

[Rebecca Smith]

That is it. It still works, though, and provides a very good internet signal.

I suppose that is a question for the Minister: what regard is he giving to such pilots? That might not be on the face of the Bill, but a large part of the population will want to know we have talked about how to ensure that connectivity on Great British Railways is up to date. Connectivity means getting from A to B, but also the ability to work using the internet. I completely agree with the hon. Member for Didcot and Wantage on that point.

I will just briefly speak to new clause 29, on Sunday working arrangements. I have mentioned this already, but those far-flung parts of the country that rely on a possibly hourly service into London that connects all the way through the south-west region need the guarantee of Sunday services. I have to leave at 6.55 am to get here. If I want to get here for an early start on a Monday, I have to leave the night before—if there was no train available, I would lose nearly a whole day just to get to London for a meeting on a Monday morning. It is a privilege to be able to do that, but I would rather not, and more frequent trains would help.

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[Keir Mather]

I thank the hon. Lady for her intervention. My reading of the amendment is that it would remove the ability to amend the strategy within a 15-year period. Her broader point, about having flexibility to make determinations about the long-term rail strategy and cater for unforeseen events, technological innovations and global events that we cannot predict, strengthens the argument that we made about amendment 134, when we considered whether to set the period in stone and make it exactly 30 years. There has clearly been deliberation between the official Opposition and the Liberal Democrats about whether it should be 15 or 30 years, but we think that not being overly prescriptive is the best way to ensure that the rail strategy gives a long-term perspective and is sufficiently malleable to meet changing operational realities on the railway.

[Jerome Mayhew]

I just want to give the Minister some further clarity about what amendment 25 actually does. He is right that it says,

“The document issued under subsection (1) must be in force for a minimum of three control periods”,

but that should be read in the light of subsection (4), which gives the Secretary of State express power to

“keep the rail strategy under review”,

and paragraph (b), which says that they

“may revise or replace it.”

Does he accept that it is quite clear that the amendment, read in conjunction with subsection (4), does not prevent reacting to new events?

[Keir Mather]

On locking in a 15-year strategy that can be reopened only if the Secretary of State chooses to revise it, it has been said throughout our deliberations that we do not want politicians micromanaging the railway. I therefore presume that the Secretary of State would want to reopen the three control period review envelope only in extremis. Given our deliberations about whether it should be three control periods or 30 years, I think it is better overall to bake that flexibility into the Bill and allow those discussions to take place.

I have to make a lot more progress, and I do not want to detain the Committee for long. In the evidence sessions, several witnesses said that the ability to update and change the strategy in response to unexpected events is critical. No one can accurately predict things such as technological and environmental changes over the next 15 years. For that reason, the Bill has been drafted so that the strategy is not a once and done document, but can be revised when it needs to be.

The next theme in this group of amendments is to ensure that the long-term rail strategy includes specific content. Amendments 137, 207, 224, 135 and 136 all do that. The strategy will not go into specific operational requirements in the way sought by the amendments, which relate to topics such as rural railways, co-operation with local authorities, timetable integration, international rail and electrification. Those are all vital topics—of that there is no doubt—but they are all matters for Great British Railways to consider as it develops its strategic plan for the operation and optimisation of the rail network, informed by the long-term strategy.

Although I agree that co-operation with local authorities is critical to the success of this reform, I do not think that that objective needs to be captured in the long-term rail strategy. Rather, it is already captured in the Bill via GBR’s duty to co-operate with mayoral strategic authorities. That duty is provided for in legislation and will be enduring, so it does not also need to be in the strategy.

The suggestion that the long-term rail strategy should set out obligations relating to the timetable is in opposition to the views of the majority of stakeholders who responded to the Railways Bill consultation. They want Great British Railways to have the autonomy to manage the timetable without Government micromanagement, and I wholly agree with that.

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Network Rail already considers the level crossing impact on local communities of any changes to rail operations, and GBR will continue that work, with ORR oversight. GBR will manage level crossings in a way that maintains high levels of safety for all users, reflects local and national priorities, and is firmly grounded in evidence.

[Jerome Mayhew]

I am grateful to the Minister, who is doing his job in highlighting some of the practical challenges that the amendment might entail. The important bit is not so much the strategy; I think what my hon. Friend the Member for Runnymede and Weybridge is trying to get at is that, when Network Rail or GBR assesses the function of a level crossing, it also needs to take account of the impact on the society in which it is based: for instance, cutting a town in two or stopping vehicular access for multiple periods during a day. Does the Minister not agree that, if GBR did not consider that—it was not in the list of considerations that the Minister mentioned a moment ago—it would not be doing its full job?

[Keir Mather]

I thank the shadow Minister for his intervention. I very much identify with the sentiment identified by the hon. Member for Runnymede and Weybridge. This is something that impacts Selby town, much as it affects communities across the country. It is right that GBR has regard to managing the way in which level crossings impact road users as much as it does the way that railway infrastructure and passenger services do.

My question is whether that obligation is best placed in this part of the Bill. Network Rail already has a system for considering the impact of changes on local communities, and that will be mapped over into the way that GBR functions. I believe that the transfer of that process, in a way that is reactive and operationally agile, is probably the best way to ensure that those considerations remain integral to how GBR carries out that work.

On connectivity and multimodal journeys, I am happy to confirm that strategic objectives in the long-term strategy will already include supporting better connectivity between communities. This will provide direction on the long-term trends affecting the railway. However, as with others in this group, amendment 261 would make the strategy a document focused on short to medium-term assessments of passengers’ ability to change between rail services or different modes—things that could change frequently, and are therefore not appropriate for inclusion in a document that sets out long-term strategic aims.

However, the hon. Member for Broadland and Fakenham will be pleased to hear that we will soon be publishing our integrated national transport strategy, which will set out the Government’s vision for domestic transport across England. It will focus on a transport network that works well for people across the country, including improving integration across modes, but I will of course take the sage advice of the right hon. Member for Melton and Syston about my personal role as part of that process.

Amendments 225 and 213 both seek to make the strategy subject to additional procedural requirements. Amendment 225 requires consultation with operators during preparation of the strategy. I can reassure the hon. Member for Broadland and Fakenham that the Government have already committed to consultative engagement with key stakeholders, including freight and passenger train operating companies, which will be essential for gathering evidence and informing the strategy’s development. Therefore, in our view, this amendment is unnecessary.

Amendment 213, meanwhile, requires regular reporting from the Secretary of State to Parliament on delivery of the strategy. However, as GBR will be the principal organisation responsible for delivering the vision and outcomes that will be set out in the long-term rail strategy, it will be for GBR to report on its progress in delivering it. GBR already must have regard to the strategy, and will respond to it through its business plans, on which it will report regularly. Given that and other existing reporting mechanisms, the amendment would be duplicative.

The new clauses in this group all propose new strategies or reports—for example, on rolling stock, cyber-security and technology, Sunday working arrangements or signalling. Those all naturally cut across the long-term rail strategy and, if accepted, would, in my view, risk GBR being busier completing strategies than actually running the railway. However, I would like to take each new clause in turn to give them due regard.

On new clause 27, the Government absolutely agree with the principle of a long-term rolling stock strategy. In fact, we would go a step further and say that this strategy should cover not just rolling stock, but the related infrastructure as well, in a single integrated strategy. Such a strategy was sadly lacking during the last three decades of privatisation, with decisions about rolling stock and related infrastructure taken to meet short-term and route-specific needs of operators seeking to maximise their profits. It is this Bill, establishing GBR, that will put that right.

However, I do not agree that the Bill needs this as a duty on GBR. Rather than creating a duty for GBR to deliver at some time in the future, we are already working with relevant parties across the industry to develop a rolling stock and infrastructure strategy to be published this summer. GBR will inherit that strategy and act on it to deliver improvements for industry, taxpayers and passengers.

Likewise, there is no need for a reporting requirement relating to cyber-security and technology. Cyber-security remains a priority for my Department; we are committed, through both existing cyber legislation and policy, to ensuring that GBR operates safely and securely. While new clause 28 reflects priorities that the Government share, the measures it proposes, such as on artificial intelligence, digitalisation and innovation, are already being delivered without the need to include them in this Bill.

On new clause 29, relating to Sunday working arrangements, I would first like to say that I have no doubt that creating GBR to improve both the quality and dependability of train services on Sundays will drive up demand and allow more people to benefit from the railway. We want a railway that operates reliably and sustainably, seven days a week, on a lower net subsidy than today, with built-in resilience and a diverse workforce. However, this is not an overnight change, but a long-term one, and not a process that, in my view, needs to be set out in legislation. Rather, we will continue to work with staff, managers and unions across the future railway to deliver this change collaboratively.

[Jerome Mayhew]

The Minister is touching on a key issue that the railway will have to address if he is serious about achieving a reliable Sunday service, and that is operating a seven-day schedule with a six-day roster. Does the Minister intend finally to address the six-day roster issue and to move working practices on to a seven-day roster?

[Keir Mather]

We want GBR to be empowered to address and deal with all these questions relating to personnel and timetabling in a way that is consultative and in partnership with both unions and private sector operators. My point merely remains that it is not appropriate to freeze them in aspic as part of this Bill, in a way that might prevent GBR’s ability to work properly through those considerations with the workforce once it exists. Producing a separate report on the demand for Sunday travel would duplicate the work that GBR already has to undertake through its business plan, which will set out the outcomes and key deliverables for GBR, including train service levels, which will be agreed with the Government and published accordingly.

Finally, new clause 54 relates to a signalling strategy, and again there is no need to place such requirements in this Bill. Network Rail has released its approach to digital signalling for 2024 to 2029, setting out the routes that will be converted to digital signalling. GBR will take over that approach and would be expected to develop it in its future business plans.

To bring the focus of the discussion back to clause 15, the long-term rail strategy will ensure that the railway will always have long-term direction from this Government and future Governments. Such directions are vital for stability and confidence within the rail industry. The strategy will help to prevent the constant short-termism that has been called out by both the industry and its supply chain.

I hope that, following my response to these amendments, the hon. Members will feel able to withdraw them, and I commend clause 15 to the Committee.

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[The Chair]

We turn to amendment 25.

[Jerome Mayhew]

I have listened carefully to what the Minister has said on amendment 25, particularly his comments on the Secretary of State, so I will not press it to a Division.

Amendment proposed: 135, in clause 15, page 8, line 25, at end insert—

“(3A) The rail strategy must include an international rail strategy to—

(a) support the development of new international routes,

(b) support operators in introducing and operating any such new routes, and

(c) support new and existing operators in using the Channel Tunnel and London St Pancras High Speed.

(3B) In meeting the objectives under subsection (3A), the international rail strategy must—

(a) consider options to increase rail depot capacity at, and to supplement, Stratford Temple Mills;

(b) consider any enhancements that may be required to conventional rail network in the Southeast of England for the purpose of enabling international rail travel;

(c) consider options for electrification, changes to gauge clearance, and any other alterations to rail infrastructure as may be necessary to increase the potential for increased rail freight to travel via the Channel Tunnel.”—(Olly Glover.)

This amendment would require the Secretary of State to include an international rail strategy as part of the Government’s long-term rail strategy. The international rail strategy would specifically look to support new routes and operators, and increase Channel Tunnel and London St Pancras High Speed rail capacity.

Question put, That the amendment be made.

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Duty of Great British Railways and ORR to have regard to strategies etc

[Jerome Mayhew]

I beg to move amendment 26, in clause 16, page 9, line 11, leave out “have regard to” and insert “seek to achieve”.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 218, in clause 16, page 9, line 20, after “and” insert

“each single strategic authority, and”.

This amendment would require GBR to have regard to the transport strategies of single strategic authorities when exercising its statutory functions.

Clause stand part.

New clause 33—Long-Term Rolling Stock Leasing Framework—

“(1) Within 12 months of the passing of this Act, the Secretary of State must publish a framework for the long-term leasing of rolling stock (‘the Framework’).

(2) The Framework must apply to all rolling stock agreements for use on infrastructure managed by Great British Railways.

(3) The Framework must include measures to—

(a) provide that rolling stock leases entered into, renewed or extended by Great British Railways or passenger operators for use on infrastructure managed by Great British Railways, have a minimum lease term of 15 years for new or renewed rolling stock, unless the Secretary of State determines that a shorter term is justified by exceptional operational or market circumstances;

(b) require Great British Railways to assess whole-life asset cost, maintenance, refurbishment and residual value when procuring or approving leases;

(c) provide Great British Railways with the power to specify obligations in long-term leases that support accessibility, improved energy efficiency, and interoperability across the network;

(d) ensure that long-term certainty supports—

(i) manufacturers of, and

(ii) persons who maintain

rolling stock by enabling investment in skills, supply chains and technological innovation;

(e) require that lease terms are consistent with Great British Railways’ long-term network strategy, its five-year funding settlements and its access and capacity allocation duties;

(f) require Great British Railways to publish an annual statement setting out—

(i) projected rolling stock needs for the 15 years following the publication of the statement;

(ii) any lease terms agreed within the year prior to the annual statement;

(iii) an assessment of the alignment of lease arrangements with the Framework’s objectives;

(iv) a value-for-money assessment of any new or renewed leases.

(4) Before issuing or revising the Framework, the Secretary of State must consult—

(a) Great British Railways,

(b) the Passenger Council,

(c) the Office of Rail and Road, and

(d) any other persons the Secretary of State thinks appropriate.

(5) Within 12 months of the passing of this Act and every subsequent 12 months, Great British Railways must lay an annual report before Parliament setting out its compliance with the Framework and the reasons for any departures from the minimum lease requirement.”

This new clause would require the Secretary of State to publish a Long-Term Rolling Stock Leasing Framework, and for Great British Railways to comply with this framework.

New clause 36—Rolling Stock Investment Framework—

“(1) Within 12 months of the passing of this Act, Great British Railways must publish a report containing a framework for rolling stock investment (‘the Framework’).

(2) The Framework must include an assessment of needs for rolling stock for the period of 15 years following its publication, including—

(a) procurement of new rolling stock,

(b) refurbishment of rolling stock that is already in use,

(c) digital signalling and onboard technology upgrades,

(d) decarbonisation, and

(e) accessibility improvements.

(3) The Framework must set out the routes through which private investors may finance—

(a) new trains,

(b) refurbishments to existing stock,

(c) upgrades to low-carbon traction,

(d) modernisation of interiors of trains,

(e) predictive maintenance, and

(f) digital systems.

(4) The Framework must promote private-sector investment in energy-efficient rolling stock and accessibility improvements.

(5) For the purposes of subsection (4), the meaning of ‘energy-efficient rolling stock’ includes hybrid, battery, or hydrogen technology.

(6) The Framework must set out how procurement undertaken by, or on behalf of, Great British Railways will—

(a) ensure competitive tendering,

(b) encourage innovation in design and maintenance,

(c) provide private investors with a stable commercial investment environment, and

(d) ensure a consistent pattern for the placement of orders.

(7) Great British Railways must align any plans for investment in the Framework with—

(a) its integrated business plan, and

(b) funding determinations for the relevant Control Period.

(8) Great British Railways must update the Framework at least once each year after it is first published, including in relation to—

(a) updating Great British Railways’ strategy for its fleet of rolling stock,

(b) opportunities for private capital investment in rolling stock,

(c) the reasons for any major changes to planned procurement,

(d) expected timelines and volumes for procurement, and

(e) how it will use private investment to—

(i) reduce whole-life cost of stock,

(ii) improve quality of stock, and

(iii) support jobs in the rail supply chain in the UK.”

This new clause would require GBR to publish a rolling stock investment framework.

New clause 37—Great British Railways Accountability—

(1) Great British Railways must publish a business plan each year.

(2) The business plan set out in subsection (1) must include—

(a) a summary of activities that Great British Railways intends to undertake during the following year,

(b) how these activities will support the delivery of the Rail Strategy,

(c) the outcomes Great British Railways expects to achieve, and

(d) how these outcomes reflect the funding settlement for the relevant Control Period.

(3) Great British Railways must publish a delivery report each year (‘the Report’).

(4) The Report must set out progress made against the outcomes in the Rail Strategy, including—

(a) passenger experience,

(b) freight growth,

(c) accessibility,

(d) passenger growth,

(e) integration with housing and local transport, and

(f) long-term infrastructure and service improvements.

(5) The Report must assess Great British Railways’ performance against its statutory duties as set out in this Act.

(6) The Report must include Great British Railways’ performance against its key performance indicators set by the Office of Rail and Road, including—

(a) areas of underperformance,

(b) risks to delivery,

(c) corrective actions taken, and

(d) financial performance related to its business plan.

(7) The Office of Rail and Road must assess Great British Railways’ performance against its business plan, key performance indicators set out in section [Great British Railways: Key Performance Indicators] and statutory duties, and publish an annual assessment of its performance.

(8) If the Office of Rail and Road makes any finding of material underperformance in the assessment set out in subsection (7), it must give notice to—

(a) the Secretary of State, and

(b) Great British Railways.

(9) The Secretary of State must publish a written response within 90 days of receiving a notice under subsection (7).

(10) Within 90 days of receiving a notice under subsection (8), Great British Railways must set out—

(a) how it will rectify any underperformance identified in an assessment under subsection (7), and

(b) and how it will measure progress against any areas of underperformance.

(11) The Secretary of State must lay before Parliament a copy of—

(a) each business plan under subsection (1),

(b) each delivery report under subsection (3), and

(c) each assessment made by the Office of Rail and Road under subsection (7).

(12) When the Secretary of State lays a copy of the delivery report in accordance with subsection (11)(b), a Minister of the Crown must make a statement to each House of Parliament about the contents of the report.

(13) For the purposes of this section, ‘Control Period’ has the meaning given in any final decision taken by the Office of Rail and Road which concludes each periodic review of access charges as described in Schedule 4A of the Railways Act 1993.”

This new clause sets out a reporting and accountability framework for GBR.

[Jerome Mayhew]

The usual procedure applies again. Clause 16 requires both GBR and the Office of Rail and Road to “have regard to” a number of different requirements, such as the long-term rail strategy, the statutory transport or rail strategies published by the Welsh and Scottish Governments respectively, the mayoral combined authorities and the Mayor of London. There is a key political question within this clause: why has the Minister chosen to apply a duty on GBR and the ORR to only “have regard” to those strategies? In practice, that means only that GBR and the ORR will consider transport plans, not that they must, or even should, follow or prioritise them.

That seems a slightly unusual position for the Government to take, given their keen approach to oversight of GBR in other clauses, such as 7 and 9, where it looks like they wish to maintain their role as key stakeholder over that of the devolved Governments and the mayoral combined authorities. The weak obligations are shared, whereas the strong obligations are kept primarily to themselves. It is a surprising approach, particularly given that clauses 7 and 9 effectively strip GBR of operational independence. I recognise that the Scottish Government and, to a lesser extent, the Government in Wales have their own clauses to guide and direct, but the mayoral combined authorities certainly do not. I wonder whether this clause is directed at overweening powers demanded by certain mayors, but I could not possibly look into the depths of the psychology of the Labour party as it struggles with its issues at the moment.

It is very noticeable, as Mayor Andy Burnham said to us last Tuesday in oral evidence, that there is a substantial difference between the Government’s proposed treatment under the Bill of mayoral combined authorities and that of Transport for London. There does not appear to be any rationale for that deliberate divergence—or at least not one that the Government have identified.

As other mayoral combined authorities come online, the Bill provides no formal mechanism for their wishes to be respected. Members of the Committee who were in the oral evidence session will remember that Andy Burnham said he would “insist” on greater authority in that area. The Bill as currently drafted does not provide that avenue for him or for others, so those looking for advancement in the future might like to consider their voting strategy on this clause. After all, page 33 of the Labour manifesto states:

“Mayors will have a role in designing the services in their areas.”

Can the Minister outline the mechanism for existing and future mayoralties to be put on a statutory footing, and for their local transport plans to be given greater consideration from GBR and the ORR?

There is one other question regarding this clause. It relates to subsection (3). What does GBR do if the strategy of a mayoral combined authority or Transport for London conflicts with that of the Secretary of State? How are potential conflicts between strategies resolved, and who will be the arbiter? Will it be the Secretary of State, or will there be an independent structure? With that in mind, the clause should be strengthened to ensure that GBR and the ORR respond more clearly and act under greater requirements.

That is where amendment 26 comes in. It would replace the very weak “must have regard to” with “must seek to achieve”. That change seems small on the face of it, but it would strengthen the requirement on GBR and the ORR to engage and work with mayoral combined authorities, the Welsh and Scottish Governments and the Mayor of London. Will the Minister support this modest proposal to strengthen that relationship?

The clause currently restricts the duty of mayoral combined authorities and the Mayor of London. It is silent on other strategic authorities, yet the same arguments apply to areas that are not yet or will never be mayoral combined authorities when identifying regional needs for current and future transport. We heard that concern eloquently expressed by my hon. Friend the Member for South West Devon. I hope that she will be able to expand some of her thinking on this in a moment. We have heard examples from the west country where local government reform is floundering, as it is around the country, including in Norfolk where I am a Member of Parliament. It is already delayed until 2028. That is perhaps just the first of further delays as well, as this Government lose steam. There is no idea where, when or even if it will go ahead.

There are also many areas that will never have a mayoral combined authority because of the structure of their local government settlement. We do have local transport authorities, though, which are the base level of local government that has responsibility for local transport co-ordination. It seems like a very significant omission that the Bill currently only relates to mayoral combined authorities. That is the lowest level of regional government to which it deigns to provide any form of requirement for co-operation with the ORR and GBR. Why is that? Where there is, for sound local reasons, no mayoral combined authority, why are the Government designing out the ability of local government representatives, the local democrats, to co-operate and co-ordinate with the ORR and—more importantly in this instance—GBR? What happens to their interest? There is simply no explanation as to why these large authorities, which will be the local transport authorities in their own right, have been excluded from consideration. That leads me neatly on to amendment 218, which adds them to the list.

New clause 33 requires the Government, or rather GBR, to set out a long-term rolling stock leasing framework. The clause would require the Secretary of State to publish a long-term rolling stock leasing framework, and require GBR to comply with that framework. It mandates a minimum 15-year lease, save in exceptional circumstances. That is because the longer the lease, the better the value for money for the taxpayer.

Longer leases lead to lower costs, which will lead to more UK investment, more trading and better value for taxpayers, as the industry and supply chain are able to plan ahead and produce effective business plans. There is a consequence to the leasing’s being done by the public sector, rather than the private sector: the Government will have to consider the impact of the cost of leasing on the national debt. That is, after all, the logical consequence of their political decision to nationalise the railways—the operating companies. There is a cost that comes with it, and that is moving from the private sector balance book on to that of the public sector. The Government need to own the financial consequences of their political and ideologically driven decision, and that is one of them.

[Rebecca Smith]

Does my hon. Friend agree that one of the positives of new clause 33 and its attempt to rectify things as they stand, is that it is not throwing private investment in our rolling stock out of the window? We have heard in evidence and throughout the Bill process, whether that is in Transport Committee evidence or the Bill Committee, that millions and millions of pounds have been accepted by this Government by the private sector for rolling stock investment. If we are not careful, we will completely dissuade them from being involved. We are already seeing them moving to Europe with that investment instead.

[Jerome Mayhew]

My hon. Friend is absolutely right. New clause 33(3)(a) to (d) is aimed at reducing short-term decisions and focusing more on long-term efficiency and savings. I am sure there are many former business people on the Labour Benches—or maybe not, actually—[Interruption.] I am glad to hear that there are. There are many former business people on these Benches, and all those who have run businesses will know that predictability of the future is one of the key drivers of economic success and of driving down costs. New clause 33 will help to achieve that for the taxpayer.

GBR will also be mandated to produce an annual public report that enables Parliament and the public to properly hold GBR to account. We have heard time and again how light the Bill is on the ability of the public and of Parliament to hold GBR to account; we are the representatives of the people and we are being denied, by design, the opportunity to do that adequately. Yet it will be spending £20 billion-plus each year, about 50% of which, at the current rate, is public money. Why are the Government running scared of public oversight of these operations?

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[Baggy Shanker (Derby South) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Mr Western. I think this is an opportune moment to ask a question, as a Derby MP with Alstom in my constituency— the only place in the UK now where a train can be designed, engineered, manufactured and tested. Under the previous Government, Alstom had to make thousands of redundancies because there was just no certainty about work and there were delays on various projects. Can the hon. Member explain why the previous Government did not take any steps to come up with a rolling stock strategy?

[Jerome Mayhew]

I thank the hon. Member for his intervention, and for standing up for the jobs in his constituency, which is something we all need to do. I cannot speak for the actions of the Government before I was even elected as a Back-Bench MP, but we are certainly looking to improve. I would be the first person to say that the status quo ante was capable of improvement. Privatisation did bring many benefits to the railways, particularly in encouraging innovation and focus on the customer, leading to the increase in passenger numbers, which I have already spoken about in previous sittings, but was it perfect? Of course not.

As has been trailed by the Government, this is a once-in-a-generation opportunity to redesign and improve our approach to the railways, and I think that taking a long-term approach to rolling stock investment and creating this framework would be taking advantage of that opportunity to try to improve predictability for the supply sector—for Alstom, but also for Siemens and other manufacturers as well.

New clause 36 would require GBR to publish and keep under annual review a 15-year rolling stock investment framework that sets out future needs for new and existing trains. That includes—this is important—not just the replacement of trains but refurbishment, digital upgrades, decarbonisation and accessibility improvements. It would establish how private investors could finance rolling stock and related upgrades, promote energy-efficient technologies such as battery, hydrogen and hybrid traction, and set expectations for competitive, innovative and, importantly, predictable procurement. The framework must align with GBR’s business plan and control period funding, which are two very sensible requirements, and it must also provide transparency on procurement volumes and timelines, explain changes to plans and show how private investment will be used to reduce whole-life costs, improve train quality and support jobs in the UK rail supply chain.

The Government have thrown the sector into a period of uncertainty—that is inevitable with large-scale redesigns like the ones we are going through at the moment. My concern is that the way in which they have chosen to do this, through a process of drifting nationalisation before knowing the details of its replacement, has exacerbated that uncertainty and extended it over a prolonged period. As the hon. Member for Derby South has already noted, we are already seeing that uncertainty in the supply chain and the manufacturing base.

There is uncertainty—that is the problem. This is a shell Bill; it does not have the answers, and it does not give any confidence to industry that things will be better in the future. It relies on a whole raft of provisions in the 19 documents to which we have referred to time and again, but they do not exist. We do not know whether things will get better or worse, and neither does the industry. There is no supporting documentation on how GBR will function in practice. I am not sure the Government even know that yet, and they really ought to have done better than this. New clause 36 would point them in the right direction, and I certainly look forward to pressing it to a Division, should the opportunity arise.

New clause 37 would increase accountability by setting out a reporting and accountability framework for Great British Railways. The new clause states:

“Great British Railways must publish a business plan each year”,

which we have already considered, and it dictates:

“The business plan…must include…a summary of activities that Great British Railways intends to undertake during the following year”

and

“how these activities will support the delivery of the Rail Strategy”.

At the end of the year, GBR would be required to produce a second report setting out its progress against the business plan objectives, the first of which is passenger experience—we all know the Government substantially ignore passenger experience at the moment, apart from reliability in short trains, and have just brushed the other aspects under the carpet. The other objectives include

“freight growth…accessibility…passenger growth”,

which is also ignored by the Government in the Bill as drafted,

“integration with housing and local transport”

and

“the long-term infrastructure and service improvement.”

The ORR must assess GBR’s performance against the key performance indicators set out in new clause 2, which we have already debated but not yet voted on. If the ORR finds any material underperformance, it must give notice to the Secretary of State, who must publish a written response. This general approach is very business focused; it simply asks that GBR sets out what it is planning to do at the start of the year, and then having worked through the year, there is a process for GBR to mark its homework at the end of the year. Has GBR done what it said it would do? If it has not, the spotlight is on. It is also being assessed by the ORR, which retains its role as an independent expert adjudicator that is trusted by all parts of the rail sector.

Perhaps the best thing is that, in response to that, GBR must also set out what it will do to rectify any underperformance, and it must lay a report before Parliament and make a statement. The new clause would add critical levels of parliamentary and public scrutiny to GBR, allowing both to hold this new organisation to account, which we believe is paramount when such vast amounts of taxpayers’ money will be used. The current Bill is woefully short on accountability. It lacks strong incentives to encourage GBR to perform, to be held to account and to answer for its actions—or lack of action.

This all feels a little too comfortable. We have a nationalised industry reporting to officials from the Department for Transport, and it is not focusing on the experience of customers and passengers, passenger growth or all the other imperatives of rail in the future. The Minister will of course tell us that none of that is necessary. However, with the greatest respect, direct experience of running a business tells us that we need to design in strong incentives—this is crucial; it is not primarily a political point but a trying to improve this Bill point—so that GBR is inclined to focus on the right objectives, without having to respond to external direction. These new clauses would help to point GBR in the right direction. I look forward to the Minister’s support.

[Olly Glover]

I should have said earlier, Mr Western, that it is a pleasure to once again serve under your chairship as we debate another exciting group of amendments. I want to make some brief remarks on the Conservative amendments in this group. I eagerly await the Minister’s polite but withering put-down.

Amendment 26 is a matter of wording. Alas, unlike the shadow Minister, my only experience of the law is occasionally watching “Kavanagh QC”, a reference that no doubt reveals my age. I shall await the Minister’s comments on that amendment and shall reach a view in the no doubt incredibly nail-bitingly tight Division on it. On amendment 218, I agree with the shadow Minister that we need to get mayoral consultation right, and to have plenty of it.

New clause 33 seems sensible, given the Conservatives’ and Labour’s total obsession with rolling stock leasing rather than purchase, which I find utterly bizarre. Rolling stock leasing can make sense, particularly when gilt prices or the cost of capital is high, but it is quite expensive on a whole-life cost basis. Otherwise, why would rolling stock companies do it? There are some very nice people in them, but they are not charities. Rolling stock leasing happens elsewhere in Europe, but it is not as universal as it is here. However, that feels like either yesterday’s war or tomorrow’s—probably not today’s.

On new clause 36, I note that the shadow Minister has tabled amendments about the private sector to similar effect in group 36. I politely suggest to him that, in the same way that members of the governing party can sometimes be too ideologically committed to the idea that public sector is automatically better, the evidence does not necessarily support the view that private sector is automatically better in the rail context. It is context-dependent. ORR benchmarking from 2012 showed that our train driver and rolling stock maintenance costs, both of which have been in the private sector for some time, were generally significantly higher at that time than those of our European counterparts. I do not believe that those trends have changed significantly.

I would be interested to hear from the shadow Minister and from the Government the evidence that private sector is automatically better than public sector, or vice versa. I think it depends on the context. Perhaps more important is getting requirements and specifications for tenders right or deciding in each individual context the best way to get value on a whole-life cost basis. We definitely have a problem on the railway, and perhaps as a nation as a whole, with being obsessed with getting up-front capital costs down, but there is not quite the same level of attention for a decent appraisal of whole-life costs and deciding how to move forward on that basis.

On new clause 37, I understand the intention of an annual business plan, but my slight worry is that it could undermine the logic of the five-year funding review period. Perhaps the shadow Minister can address that when he sums up.

--- Later in debate ---

[Keir Mather]

The hon. Lady must have read my mind about that detail being forthcoming. If she will allow me to take away that specific point over the break that we are about to have, I might be able to come back to her when we resume the debate.

For the moment, I will quickly turn specifically to the amendments in the group. The lead amendment would require GBR and the ORR to “seek to achieve” the long-term rail strategy and devolved strategies, rather than to “have regard to” them. The existing wording deliberately reflects the nature of those strategies within the system. The LTRS will take a 30-year perspective and set strategic objectives, rather than define a narrow set of deliverables.

We of course want GBR and the ORR to have regard to the strategies in all decision making, but they must also have the flexibility to balance long-term objectives with the practical business planning processes that operate over fixed periods. To legislate that such a vision should be achieved would not be in line with that principle, or with the overall approach to the general duties that set the conditions for successful decision making, but do not dictate specific outcomes. As I have reminded hon. Members, GBR, not the Government, will be running the railway.

New clause 37 also relates to GBR’s delivery and looks to establish a statutory annual reporting framework. The Bill already provides robust reporting and accountability arrangements. GBR is required to produce an integrated business plan for each funding period, which must be published and kept up to date, and that will give Parliament and stakeholders a clear view of GBR’s objectives, activities and expected outcomes. A separate statutory annual delivery report would in essence duplicate that information. Furthermore, the ORR will have a role in monitoring GBR’s performance against its business plan and will provide independent advice to the Secretary of State. Such oversight ensures that GBR can be held to account without the need for an additional statutory reporting requirement.

New clauses 33 and 36 relate to GBR’s long-term approach to securing rolling stock. The former calls for the Secretary of State to publish a long-term rolling stock leasing framework and sets out a substantial amount of detail on what that should include. Within that detail, there are certainly points on which we can agree, including the benefits of longer leases and the proper consideration of whole-life asset costs, both of which have been made more challenging to achieve under the franchising model. However, I profoundly disagree that the Secretary of State should dictate the detailed approach that GBR should take to rolling stock leasing, and with the specific terms set out in the new clause. It is rightly for experienced industry professionals within GBR, guided by the Secretary of State’s long-term rail strategy, to secure the best value and achieve GBR’s other objectives through commercial arrangements with the rolling stock leasing market. It should not be for the Government to dictate the detail of those arrangements.

On new clause 36, I of course agree that GBR should have a long-term rolling stock and infrastructure strategy, which is why we are already working with parties across the industry to develop one. The strategy will be published this summer, and will remain a live document. GBR will inherit and implement it as soon as it is established. The new clause is therefore unnecessary, as by the time it would take effect, GBR will already be up and running with a long-term rolling stock strategy.

Amendment 218 would require GBR to have regard to the transport strategies of single strategic authorities. We are of course supportive of a more locally focused railway under GBR. The provisions in the Bill are pitched at mayoral strategic authority level, reflecting their growth across England, the vital role that mayors play in convening local partners and the scale and capability required to integrate rail into the wider public transport network. Nevertheless, all tiers of local government will benefit from empowered local GBR business units that are outward facing and actively engage local authorities on their priorities and local transport plans. That engagement will ensure there is sufficient opportunity for local authorities outside the mayoral strategic authority areas to collaborate with GBR on their priories and to consider proposals. I hope the hon. Member for Broadland and Fakenham therefore feels comfortable withdrawing the amendments.

Clause 16 places duties on GBR to have regard to the long-term rail strategy, devolved transport strategies and local transport plans. Overall, it seeks to ensure that strategic decisions on matters such as future services and infrastructure plans appropriately reflect national, devolved and local priorities. I commend the clause to the Committee.

[Jerome Mayhew]

This is now a common refrain in our deliberations. The Minister says, “Don’t worry. All these things will be taken care of at some future date in documents that have not been drafted and certainly haven’t been shared with the Committee.” With the greatest respect to him, I do not take it on trust that the Government are looking carefully and in sufficient detail at these matters, so I will press the amendments to a Division.

Question put, That the amendment be made.

Railways Bill (Sixth sitting)

Jerome Mayhew Excerpts

Committee stage
Tuesday 27th January 2026 Public Bill Committees

[The Chair]

We are now sitting in public and our proceedings are being broadcast. Before we begin, I remind Members to switch any electronic devices off or to silent, please, and that tea and coffee are not allowed during the sittings—there should be ample water at your Benches. The selection and grouping document shows the way in which the amendments and new clauses have been arranged for debate. Any Divisions on amendments or new clauses take place in the order in which they appear in the amendment paper, of which you should all have a copy.

Schedule 1

Licensing of Great British Railways

[Jerome Mayhew (Broadland and Fakenham) (Con)]

I beg to move amendment 233, in schedule 1, page 55, line 10, leave out “consultation” and insert “agreement”.

This amendment limits the Secretary of State’s powers to set GBR’s licence unilaterally.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 110, in schedule 1, page 55, line 25, leave out “consultation” and insert “agreement”.

This amendment, along with Amendments 111 and 112, would limit the Secretary of State’s ability to unilaterally set GBR’s licence and require instead agreement from the ORR and the Passenger’s Council.

Amendment 111, in schedule 1, page 55, line 30, leave out “consultation” and insert “agreement”.

See explanatory statement for Amendment 110.

Amendment 112, in schedule 1, page 55, line 34, leave out “consultation” and insert “agreement”.

See explanatory statement for Amendment 110.

Amendment 118, in schedule 1, page 56, leave out line 6.

This amendment would strengthen the ORR’s right to grant a license to a non-GBR operator.

Amendment 113, in schedule 1, page 57, line 20, leave out “consult” and insert “obtain the agreement of”.

This amendment, along with Amendments 114 to 116, would require the Secretary of State to gain the consent of the ORR for making regulations about GBR’s licence.

Amendment 114, in schedule 1, page 58, line 20, leave out “consultation” and insert “agreement”.

Amendment 115, in schedule 1, page 58, line 21, leave out “consultation” and insert “agreement”.

Amendment 116, in schedule 1, page 58, line 23, leave out “consultation” and insert “agreement”.

Amendment 126, in schedule 2, page 62, line 17, leave out “advice” and insert “agreement”.

This amendment would require the Secretary of State to obtain the ORR’s agreement for GBR’s business plan instead of seeking its advice.

[Jerome Mayhew]

Thank you, Mr Western, and for agreeing to be in the Chair this afternoon. We are part-way through consideration of the schedule, with a degree of overlap: amendment 109 was selected in a separate group to this one, although its wording is intricately linked to that of amendments 110 to 116. I shall try to minimise the degree of repetition for all concerned.

The amendments in this group seek to constrain the Secretary of State’s ability to modify the licence of Great British Railways without first seeking consent from the Office of Rail and Road and the passengers’ council. The Government’s strategy is for the Bill to be the legislative shell for the creation of GBR. Crucial matters of detail, such as the licence under which GBR will operate, together with important long-term strategies, business plans, targets and so on, which we have mentioned more than once in our deliberations so far, are separate from the Bill.

That detail matters and deserves proper scrutiny by this Committee and elsewhere in the Houses of Parliament. When the Rail Minister and his officials appeared before the Transport Committee on 7 January, Members took several attempts to secure an assurance that the draft licence would be published before Parliament completes scrutiny of the Bill, albeit without a specific date set. It is therefore important to include in the Bill stronger checks and balances than exist now, and that is the purpose of amendments 110 to 115.

At present, the Bill merely requires the Secretary of State to consult the ORR. Legally, that is of course very weak and, after such consultation, the Secretary of State may simply ignore whatever it is that the ORR comes up with. Amendments 110 to 112 therefore require the Secretary of State to obtain the Office of Rail and Road’s agreement for the licence to be issued, and amendments 113 to 115 require the Office of Rail and Road’s agreement for the licence to be modified.

In addition, modification of the licence requirements would need consent from the new passenger watchdog. If the passenger watchdog is to be as powerful in championing the interests of passengers as the Government claim they want it to be, it requires proper powers that go beyond an invitation to be consulted. That leads me to amendment 118, which would leave out line 6 on page 56 of the Bill and would strengthen the right of the ORR to grant a licence to a non-GBR operator.

The schedule contains important powers for the Office of Rail and Road to issue licences to operators other than GBR to operate services on the network. However, proposed new section 8(5)(a) in paragraph 3 of the schedule gives the trump card to the Secretary of State, who must consent to the granting of such a licence. Why is that power of veto required? Perhaps the Minister will explain when he responds.

If the Government wish to reduce their involvement in the day-to-day running of the railways and the Office of Rail and Road deems that an application from a non-GBR operator meets all the requirements and conditions set out in the Bill, why do the Government think it necessary to have that overriding power? It does not appear to make sense. Amendment 118 would remove that power of veto. The group of amendments, together, would require the Secretary of State to obtain a formal recommendation from the Office of Rail and Road, and would require that the GBR licence adequately ensures that licence obligations relating to safety and standards are not compromised or undermined. The amendments would ensure that, as GBR is granted new responsibilities by the licence, it continues to be subject to safety standards obligations that are in the licence issued by the Office of Rail and Road to the current infrastructure manager, Network Rail.

Such licence obligations go beyond obligations under the Railways and Other Guided Transport Systems (Safety) Regulations 2006—which are called ROGS for obvious reasons—and would require Great British Railways to participate in the industry’s collaborative structures around collective decision making, managed by the Rail Safety and Standards Board, and comply with safety and interoperability standards set collectively by the sector, including for freight and supply chain.

For those reasons, this group of amendments, taken as a whole, would provide important strengthening of the role of the ORR. I look forward to hearing the Minister’s response.

[The Parliamentary Under-Secretary of State for Transport (Keir Mather)]

May I begin, Mr Western, by saying what a pleasure it is to serve under your chairship? I thank the hon. Member for Broadland and Fakenham for tabling this group of amendments. I shall discuss amendment 233 with amendments 110 to 112, which I believe all share the same intent. Provisions to require the agreement of the ORR and the passenger watchdog before the Secretary of State issues the GBR licence would add an additional and unnecessary level of bureaucracy. If the amendments intend to ensure that the ORR and the passenger watchdog can constructively input into the licence, I assure the hon. Member that the Bill already requires the Secretary of State to consult the ORR and the passenger watchdog, and to invite representations more widely, before the licence is issued. If the amendments were accepted, it would no longer be clear who had the right to determine the terms of the licence. It is only appropriate that, following full consultation, the Secretary of State, as the licensing authority, has the sole final sign-off of the licence. The ORR will then, of course, enforce that licence. That is consistent with the clear accountabilities that the Bill establishes. We therefore cannot support the amendments.

On amendments 113 to 116, GBR will not need to apply for a licence, therefore the amendments’ provisions would apply only in relation to non-GBR licences. In any case, the amendments would add unnecessary complexity to the process for making licence application regulations. The amendments also intend to give an approval role to the ORR and the passenger watchdog in relation to modifications of GBR’s licence. The Bill already requires those bodies to be consulted before the Secretary of State modifies GBR’s licence. Again, requiring approval rather than consultation would risk confusing the clear accountabilities that the Bill establishes.

Amendment 118 seeks to strengthen the ORR’s ability to grant non-GBR licences. Under the Railways Act 1993, all licences are granted by the ORR with the consent of the Secretary of State. In practice, that consent is normally given in advance through a general authority, avoiding the need for case-by-case approval. The Bill does not change that aspect of the licensing regime. Removing the provision for specific Secretary of State consent, as the amendment intends, would not meaningfully strengthen the ORR’s ability to grant non-GBR licences. Non-GBR licences could still only be granted within the scope of a general authority approved by the Secretary of State.

In fact, the amendment would remove a useful route that enables the ORR to issue a licence outside the scope of a general authority or in circumstances where amending a general authority would not be practical. Far from strengthening the ORR’s ability to issue non-GBR licences, the amendment would instead likely weaken it.

Finally, amendment 126 would require the ORR to agree to GBR’s business plan before it is approved. I agree that the ORR provides invaluable input as an expert, independent regulator and it must have a robust role in the determination of GBR’s business plans. That is why the Bill gives it an explicit role to run the funding process, provide advice on the business plan and validate the costs within it, and independently publish its advice, whether that advice is supportive or critical of GBR.

However, it is not appropriate for the ORR, an unelected body, to decide how public money is allocated to the railway. Public spending decisions at this level should sit with elected Ministers who are responsible for funding the railway. I hope the hon. Member for Broadland and Fakenham can see this Government’s commitment to a robust and independent role for the ORR, but it is clear that the ORR can fulfil its role assuring the business plan without needing to be a funding approver to do so.

Further, the ORR will have an expanded monitoring role though the powers in the Bill, being able to monitor all GBR’s activities against its business plan. If GBR does not deliver on its plans, the ORR will be able to publish its findings, as well as escalating the matter to the Secretary of State. The ORR will be a trusted expert adviser to the Secretary of State, combining the strengths of an expert regulator with the need for the Government to control taxpayer money.

I encourage the hon. Member for Broadland and Fakenham to withdraw the amendment, and not to press the others in this group to a vote.

[Jerome Mayhew]

I listened with interest to the explanation the Minister gave and his request that the amendment be withdrawn. I was particularly interested to hear him describe the role of the ORR as a “trusted expert adviser”. In my submission, when we have GBR as the player and referee in many of the areas it will be active in, with a designed-in conflict of interest, we need more than a trusted expert adviser to hold the Government and GBR to account; we need an independent regulator. That is exactly what the ORR currently is.

I intend to press amendment 233 to a vote and, dependent on the outcome, I will not proceed to press amendments 110, 111, 112, 118, 114 and 115 as they address similar wording in other parts of the Bill. However,but I will seek to press amendment 126 to a vote if we get the opportunity to do so this afternoon.

Question put, That the amendment be made.

--- Later in debate ---

[Keir Mather]

Clause 12 establishes a new funding process for GBR that takes what we have learnt from the successes of the periodic review process today and applies them to the new GBR world. That new funding period review will not only provide GBR with five years of funding to carry out its job of operating and maintaining the railway network, but will create a structure through which GBR will develop and own integrated business plans, across track and train, that reflect its role as the directing mind for the railways. That five-year funding certainty will help to drive the best price for Government and the taxpayer, through lower risk and the benefits of economy of scale. It will also generate consistent, longer term work for private partners in the rail supply chain, keeping good, well-paying specialist jobs alive and thriving.

[Jerome Mayhew]

Clause 12 is an enabling clause. It is very short and merely refers to schedule 2, so I make no representations to change it and shall not seek to divide the Committee on it.

--- Later in debate ---

[Edward Morello (West Dorset) (LD)]

I wish to speak briefly to new clause 26, which was tabled by my hon. Friend the Member for Didcot and Wantage. In simple terms, the new clause would ensure that Great British Railways’ funding is reviewed, published and scrutinised by Parliament halfway through each funding cycle, so that there is transparency and accountability on public money and it is spent effectively.

Any long-term rail strategy, particularly one that involves large sums of public money, must be open to proper scrutiny, regularly reviewed and accountable to Parliament. This is especially important as the Bill in its current form gives the Secretary of State a significant concentration of power over the future, shape, funding and direction of the railways. If Parliament is to be asked to confer that level of authority, accountability should increase alongside it. New clause 26 provides a sensible and proportionate mechanism to do exactly that without dragging Ministers or officials into day-to-day micromanagement.

As currently proposed, Great British Railways risks becoming the rail equivalent of NHS England—a fear raised previously in Committee—a large, centralised body distant from accountability and with blurred lines between ministerial direction and operational responsibility. Transparency is the safeguard to protect against ending up with another unaccountable arm’s length body.

The new clause would require a statutory funding review halfway through each five-year settlement. That review would set out, in clear figures, exactly how much funding GBR had been allocated, how much revenue had been raised from fares, and how much Government subsidy had been received. Crucially, it would also be sent directly to the Transport Committee, thereby ensuring proper parliamentary scrutiny. That matters because taxpayers are funding the railway twice: once through general taxation and again through ticket prices. Passengers and taxpayers alike deserve to know where their money is going, how it is balanced between subsidies and fares, and whether it is being spent evenly and effectively across the funding cycle, not just all at the start or at the end.

A mid-point review would also allow us to see what is working and what is not, particularly given that GBR will be a new organisation. It would give time to correct course when things are failing, and to continue or scale up when results are delivered. Above all, it is about hardwiring trust into the railway system, with clear information, published transparently and scrutinised by Parliament, with a focus on passengers. We believe new clause 26 would strengthen the Bill and hope the Government will give it due consideration.

[Jerome Mayhew]

Thank you, Mr Western, for allowing me a second bite at the cherry. I misdirected myself in dealing just with clause 12 in itself, rather than the new clauses in the group.

A forward view of funding certainty is key to stopping the stop-start approach to infrastructure funding. The Committee has received plenty of evidence from the industry—both in written evidence and in the oral evidence we heard on Tuesday last week—that this is a major concern. The date in schedule 2(1)(d) is therefore important, and needs to be a minimum of two years prior to the start of the next five-year funding period. That is because, given that we currently have five-year control periods, funding certainty decreases in the run-up to the end of one control period and the beginning of the other and, as a result, the amount of work undertaken and committed to by Network Rail decreases proportionately. We therefore get a wind-down of activity, with specialist staff being laid off by the supply industry, before it all grinds up a gear at the beginning of the next control period. We end up with a bell curve of activity.

We have heard strong evidence—I will read some out in a moment—about how that uncertainty disrupts the ability of the supply sector to service Network Rail and its infrastructure development plans efficiently. It does two pretty terrible things: first, it drives up costs for Network Rail and therefore for the taxpayer, and secondly, it means that less work gets done per pound. It is expensive and it takes longer.

In written evidence to the Transport Committee, the Rail Forum states:

“The Bill states in Schedule 2 Part 1 that the SoS can ‘vary the financial assistance’ previously agreed as part of the GBR five-yearly settlement during the five-year term. This flies in the face of providing the stability that the Transport Committee was seeking to address through the ‘Rail investment pipelines: ending boom and bust’ inquiry earlier this year. Re-opening of the settlement should only be allowed in very exceptional circumstances that should be explicit in the legislation.”

Why has the Minister moved away from the position that was previously articulated? Why is the sanctity of the funding settlement within a five-year control period—which has been, albeit imperfect, so valuable for the industry—actively removed by schedule 2? To put it another way, why is the Secretary of State being granted new powers to vary the financial settlement without notice?

The Rail Industry Association, which represents the supply sector for the railways, states:

“The railway, and rail supply businesses, need stable funding to be able to plan effectively and be efficient. Changes to the Control Period style five-year infrastructure funding settlement (Schedule 2) undermine this and amplify the uncertainty already faced by suppliers.

RIA and our members are very concerned the current Bill drafting allows the Secretary of State for Transport to remove railway funding mid-period, at no notice and with very limited transparency over the impact, for example, on safety, performance or efficiency.

We disagree with the principle that the Secretary of State should be able to remove funding mid-period. Stable multi-year funding settlements are a longstanding principle for infrastructure networks because short-notice funding changes reduce the efficiency of spending and make it harder for suppliers to plan ahead with any confidence.

Supply chain confidence in the UK rail market is already historically low with 64% believing the rail market will contract in 2026 and 62% freezing recruitment or reducing headcount (over one in three business leaders plan to lay off staff in 2026), according to a RIA-commissioned Savanta survey of rail business leaders.

There is…currently already a lack of full work visibility to the end of the current Control Period, which completes in March 2029, and companies are now repositioning themselves away from rail to target other industrial sectors in the UK and overseas rail markets—the ability for the Secretary of State to remove funding would clearly exacerbate this situation…Concerningly, even on its own terms Schedule 2 does not require transparency over the impacts on efficiency, performance and safety if there are changes within a funding period and longer-term.”

Mr Western, you cannot tell me you agree that that is a very troubling statement from the industry, but I am sure you do agree, or are likely to. The difficulties with the current system are only going to be exacerbated by the proposed changes under schedule 2.

The statement of funds will indicate what the Secretary of State

“reasonably considers may be…available”.

That gives no certainty of funding, which is a key concern of the sector. It would be a backward step from the status quo. Paragraph 4(3)(c) of schedule 2 contains no focus on minimising the cost for the taxpayer, but merely refers to

“how Great British Railways proposes to meet those costs.”

Paragraph 4(5)(b) refers only to “good value for money” and not to good value for money for the taxpayer.

Under paragraph 4(7)(a), regarding the business plan, Great British Railways could retain a huge amount of information from potential open access operators, thereby preventing a level playing field.

Finally, paragraph 7(3) removes the whole point of funding periods, which is to provide funding certainty for five years. On its own, that provision removes that funding certainty—which is obviously a backward step. The RIA has stated:

“The railway has benefited from 5-year funding settlements for infrastructure for over 30 years, but the legislation proposes that the Transport Secretary will be able to reopen these at any time without consultation. Any deviation from 5-year funding stability risks increased future costs for taxpayers and a deteriorating experience for passengers.”

--- Later in debate ---

[Laurence Turner (Birmingham Northfield) (Lab)]

I appreciate what the hon. Gentleman is saying, but we have to consider the new clauses before us as drafted. Does he accept that almost no railways in the world run without subsidy on a net basis and that, where they do, there are unique geographical circumstances? The railways in Great Britain have operated with subsidies under all models since the early 1950s, and the effect of the hon. Gentleman’s new clauses, if they were to be implemented as written, would be Beeching on steroids.

[Jerome Mayhew]

I agreed with the hon. Gentleman until that last sentence, because new clause 40, which I will come to in a moment, would require not the removal of subsidy but looking towards it—it is aspirational. It would set GBR’s sights on minimising its costs to the taxpayer, not through penny pinching if that would be the wrong decision, but through growth in its revenue by becoming efficient and doing more for less. Those are all good incentives that a private business inevitably has because of the challenge of competition.

New clause 39 would require Great British Railways to focus on other opportunities for funding and on minimising operational costs, just like any other business. The areas of focus under subsection (7) are the revenue opportunities.

New clause 40, on non-reliance on taxpayer funding, would make the direction of travel for GBR clearer. It may be—in fact it is almost certain—that it will never achieve it, but it is a noble objective. It should be clear that GBR should aspire to reduce the need for the taxpayer to support the rail sector by making it as efficient and attractive to passengers as possible, thereby attracting more passengers and freight on to the railways. That would create a virtuous circle, rather than the opposite. We should start thinking about that, which is what new clause 40 is intended to achieve.

New clause 41, also tabled in my name, would require Great British Railways to publish an annual statement of its financial performance. The new clause builds on the theme, forcing Great British Railways to focus on its financial performance and reduce its reliance on the taxpayer. It may be the skimmed-milk version of new clause 40 that the hon. Member for Birmingham Northfield might find more palatable.

It is important that we do everything we can to design into a nationalised structure, where there is no competitive tension, incentives for GBR naturally to seek to achieve efficiency and productivity enhancements. There is a very real need for that, because the taxpayer’s pound can only be spent once, and funds are needed in many areas of Government. Apart from anything else, we need to reduce the tax burden, which this Government have raised to the highest on record, so anything we can do to build a structure that incentivises GBR to reduce its dependence on the taxpayer is a good thing. It also forces public accountability.

Finally, new clause 44 would require the Secretary of State to give GBR an annual savings target. Taking all the new clauses together, the intention is to allow GBR to focus on providing genuine value for money for the taxpayer, not just in abstract terms, and to cut away some of the existing inefficiencies in the infrastructure commissioning and decommissioning process, to provide a longer period of certainty for the supply chain so that it can pass on the resultant efficiencies to the taxpayer. That money can be either reinvested in accelerated infrastructure roll-out, rather like the ability of ScotRail electrification to do more for less, or—heaven forbid—used to produce tax cuts for the hard-pressed taxpayer. I hope the Minister will be bowled over by those suggestions, and look forward to hearing his response.

[Rebecca Smith (South West Devon) (Con)]

It is an honour to speak with you in the Chair, Mr Western. I will touch on three of the new clauses—one at greater length than the others—to follow up on the words of my hon. Friend.

For me, new clause 39 highlights something that is clearly missing from the Bill: what actually happens when these currently franchised, privately run rail services come into public ownership across the board. Over many years, unions have fought hard for terms and conditions for staff and railway companies, but these are not uniform across the board. There is a huge differential in the terms and conditions that staff are subject to.

I pay huge tribute to the men and women who work on the railway; they are a brilliant group of people. I am obviously on a train every week, coming up and down from my constituency. However, it is really important that we have this conversation about what the Bill will actually mean. As my hon. Friend pointed out, value for money is mentioned only once in the Bill. We are, in effect, writing a blank check for GBR to spend whatever it wants on bringing all these staff into its employment.

We were told very clearly when the Committee began that this is not a civil service; it is the public sector, so there is a difference there, but it is effectively a private body as well. I would be interested to hear the Minister’s comments about how staff are being brought across—obviously some franchises have been brought into Government control already—and about the Department’s plans going forward, because time and again, we see pay going up for public sector workers without that necessarily reflecting any changes in performance.

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[The Chair]

I remind Members that decisions on new clauses are usually taken after decisions on existing clauses and schedules, even though we may have just debated them—one for a future day.

Schedule 2

Funding Great British Railways

[Jerome Mayhew]

I beg to move amendment 119, in schedule 2, page 60, line 2, at end insert—

“(1A) The date specified in section 1(d) must be at least 24 months before the start of the funding period.”

This amendment would ensure the Secretary of State has to notify the ORR and GBR of the amount of financial assistance for the next funding period at least two years before that funding period is due to start.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 216, in schedule 2, page 60, line 39, leave out sub-paragraph (3) and insert—

“(3) The objectives set out under sub-paragraph (1)(a) must include objectives relating to passenger rail services.

(3A) The objectives set out under sub-paragraph (1)(a) may include, in particular, objectives relating to—

(a) the carriage of passengers or goods, save as already provided for under sub-paragraph (3);

(b) the railway network or railway assets (including objectives relating to the provision of the railway network or railway assets after the end of the funding period);

(c) fares;

(d) the accessibility of railway services to people with disabilities;

(e) the protection of persons from dangers arising from the operation of railways.”

This amendment would align funding of designated passenger train services with the five-year funding cycle for infrastructure.

Amendment 129, in schedule 2, page 63, line 26, at end insert—

“(6A) The Secretary of State may not, however, vary the financial assistance provided to Great British Railways”

This amendment would prevent the Secretary of State from varying the financial assistance provided to GBR.

Amendment 147, in schedule 2, page 64, line 1, leave out sub-paragraph (3) and insert—

“(3) The Secretary of State may not vary the financial assistance to be provided under paragraph 6 unless—

(a) the Secretary of State has consulted the Office of Rail and Road on the propsed variation, and

(b) the Office of Rail and Road provides written consent that the variation does not undermine the approved business plan required by paragraph 4.”

Amendment 215, in schedule 2, page 69, line 25, at end insert “including passenger services”.

This amendment, along with Amendment 216, would align funding of designated passenger train services with the five-year funding cycle for infrastructure.

[Jerome Mayhew]

Our amendments in this group develop the theme that I spoke about in the debate on the last group. We have tabled two small probing amendments to challenge the stop-start nature of funding under the current control period. Amendment 119 would insert the following new paragraph (1A) into schedule 2:

“The date specified in section 1(d)”—

which, to paraphrase, refers to the funding agreement for a control period—

“must be at least 24 months before the start of the funding period.”

Amendment 129 would insert the following new subparagraph (6A):

“The Secretary of State may not, however, vary the financial assistance provided to Great British Railways”.

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[Keir Mather]

I thank the hon. Member for Broadland and Fakenham for tabling amendment 119, which would require the Government to commit funding for a five-year funding period at least two years before the period starts. I can appreciate and identify with his desire to provide certainty to industry, and agree with the ambition that the amendment presents to generate a stable operating environment for the railway. However, as I said in response to new clause 34, I believe that the desire to require funding to be committed so far in advance is misplaced. There will inevitably be changes to economic circumstances and new projects will surface. If there is no practical discretion, a settlement agreed two years in advance may be redundant before it starts.

I can assure the hon. Member that the Bill already accounts for the need to provide the railway with certainty and ensures that the funding process completes before the start of the next five-year funding period.

[Jerome Mayhew]

I heard what the Minister said, but it flies in the face of the evidence that the industry itself gives him and all of us about the need for certainty towards the end of a control period. All that the amendment seeks is certainty for two years at the start of a control period. How is he going to address that particular issue?

[Keir Mather]

It is of course our obligation as the Government to meet the concerns of stakeholders, whether raised in the oral evidence session or elsewhere. It is also incumbent on me to point out that we want to abolish boom and bust in the rail system. On the fear about cliff edges, as was acknowledged by the ORR in its oral evidence, in reality there is not a cliff edge when funding always tends to run over the five-year period. Five years is the basis for the decision process by which funding allocations must take place. It is important to take the oral evidence in the round. It is also important to note that the ORR, which will be running the process, intends to set deadlines so that funding is committed with time for the industry to prepare. The amendment is therefore unnecessary.

Amendments 129 and 147 both seek to prevent or restrict the Secretary of State’s ability to vary the agreed funding settlement. I assure Members that the intention of providing a five-year funding commitment is that it lasts for five years. The Government are signed up to that principle. I also agree that certainty for GBR and industry is beneficial. More funding will mean we can get the best out of the railway and encourage investment, innovation and value for money.

Putting a hard restriction on all change, as amendment 129 suggests, would not be proportionate, as the shadow Minister acknowledged. As he noted, there may be unforeseen circumstances that require changes to funding, either to provide more or to reduce the amount. For example, GBR may outperform expectations and need less than is awarded, in which case Ministers will need to recoup the costs for the taxpayer, and can choose to do so in whatever way they see fit.

[Keir Mather]

Indeed! The operating environment may also change and GBR may need more funding than is committed. It is right that elected Ministers are able to make decisions on public spending and allocate resources as needed, balanced against the clear benefits of certainty.

Amendment 147 would restrict Ministers’ ability to vary funding by adding a requirement that the ORR must provide written consent. Although the Office of Rail and Road will have an important advisory role, it would not be appropriate for it to entirely determine changes to funding. Responsibility for decisions of public expenditure must remain with the Secretary of State, particularly where changes may be required due to wider fiscal circumstances. The amendment would also result in ORR consent being needed for increases in funding and immaterial changes.

The Bill provides assurances. If the Secretary of State considers that the impact of a funding reduction could be material, the Bill requires her to notify the ORR, giving it an opportunity to comment publicly on the likely effects on the railway. That balances the need for the Government to retain control over Government funding with the opportunity for independent evaluation and, if needed, public pressure, to protect certainty for the railway.

On amendments 215 and 216, I thank the hon. Member for Didcot and Wantage for so ably setting out, based on his practical experience, and far better than I ever could, the need for a single guiding mind for the railway. His explanation was buttressed by the right hon. Member for Melton and Syston. I thank the hon. Member for Didcot and Wantage for his amendments, which seek to align passenger service funding within the five-year infrastructure funding cycle. I support that intention. The Government agree that many benefits are derived from integrated funding streams. However, I do not agree that the amendments are necessary.

It is important to note that passenger services are already fully considered under GBR’s statutory duties and through the integrated business plan, in which GBR will plan all its activities on a five-year basis across track and train. The Bill requires GBR to deliver safe, reliable and efficient services, taking passenger needs into account.

[Jerome Mayhew]

GBR may plan on a five year basis, but it is not the same five years, is it?

[Keir Mather]

The shadow Minister is right to point out that allocation of funding for passenger services, as opposed to other GBR activities, initially takes place through the spending review funding process. I am about to address his point, but I should say that the Bill contains the ability for Ministers to extend the five-year funding process to passenger services once GBR is set up and prepared to manage that. It would not be responsible to do that from the outset when GBR is still in the transition and set-up phase. Ministers need to feel confident that GBR is financially mature enough before they can consider integrating funding further. I hope that addresses both the shadow Minister’s point and the contribution from the hon. Member for Didcot and Wantage.

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[Keir Mather]

Respectfully, I believe it is more sensible to be prudent and cautious regarding the funding of passenger services, rather than risk creating a situation that a newly created GBR might not be in an immediate position to sufficiently accommodate within its operating structure. Erring on the side of caution, I encourage Members to withdraw their amendments.

[Jerome Mayhew]

As I intimated earlier, amendments 119 and 129 are probing and I will not press them to a vote.

I was interested to hear the Minister’s apparent position that there is no boom and bust, that the current situation for infrastructure funding is fine and that the evidence from the industry appears not to be—

[Keir Mather]

For the record, I said that we shared the aspiration to abolish boom and bust as it exists within the rail system. That applies to our infrastructure as much as it does to any other part of the railway’s operation.

[Jerome Mayhew]

I am grateful for that clarification, but although the Minister may share that ambition, he is not choosing to do anything about it. Having said that, I said I was not going to press the amendments to a vote and I will not. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Jerome Mayhew]

I beg to move amendment 120, in schedule 2, page 60, line 36, leave out “may” and insert “must”.

This amendment would require the statement of objectives to contain standards to be achieved when carrying on activities in relation to railways and railway services.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 121, in schedule 2, page 60, line 39, leave out “may” and insert “must”.

This amendment would require the Secretary of State’s statement of objectives to include objectives relating to the list in sub-paragraph (3).

Amendment 122, in schedule 2, page 60, line 41, after “(a)” insert “increasing”.

This amendment would require the Secretary of State to set the objective for GBR of increasing passenger and freight journeys.

Amendment 123, in schedule 2, page 61, line 7, at end insert—

“(f) delivering improved productivity and efficiencies.”

This amendment would require the Secretary of State’s statement of objectives to include an objective of delivering improved productivity and efficiencies.

Amendment 206, in schedule 2, page 61, line 7, at end insert—

“(f) customer experience and satisfaction.”

This amendment expands the objectives the Secretary of State sets for railways funding settlements to include customer experience and satisfaction.

[Jerome Mayhew]

Amendments 120 to 123 aim to strengthen GBR’s value for money and wider performance duties. As drafted, paragraph 2(2) in schedule 2 only gives the Secretary of State the option of tying performance objectives to granting public funds. The performance objectives should be at the core of the granting of funds, so amendments 120 and 121 seek to change the wording of the current drafting by replacing “may” with “must”. In other words, they would make it clear that it is not an option but core to the application of the process, and should therefore be mandatory.

Amendment 122 would make it clear that Great British Railways should aim to increase passenger services. I do not know why this has become such a hot topic; I would have thought it would be obvious—I was about to use unparliamentary language for a moment there. Increasing passenger services should obviously form part of the functions and aspirations of GBR, and that should be included on the face of the Bill. It should be clear that GBR aims to increase passenger services, not just freight. In addition, the list of objectives in the schedule is missing a specific objective on productivities or efficiency, which amendment 123 would add.

This series of simple amendments seek to perfect the currently imperfect drafting, to put performance at the heart of the Bill and to recognise that the pursuit of increased passenger numbers should be a key objective of GBR, in addition to its focus on growing rail freight, which we all agree with.

[Edward Morello]

I wish to speak briefly to amendment 206, which was tabled by my hon. Friend the Member for Didcot and Wantage. The amendment goes to the heart of what we Liberal Democrats believe the Bill should be about: putting passengers first. It would expand the objectives that the Secretary of State sets for the rail funding settlement to include customer experience and satisfaction explicitly. In other words, it would ensure that when decisions are made about money, priorities and trade-offs, the people who actually use the railways are not an afterthought.

Making customer satisfaction central to GBR would help to rebuild trust in the railways, which many people currently feel have stopped working for them. If we are serious about encouraging people to shift away from the convenience of cars and toward more sustainable public transport, customer experience has to be central. People will not make the switch because they are told to; they will do so because trains are easier, more comfortable and more reliable.

The creation of customer satisfaction targets and objectives that are tied to rail funding settlements will create the incentives for change. It will make it more likely that investment decisions will focus on what actually improves journeys for passengers, rather than just on what is cheapest in the short term. It will find the balance between what is affordable and what is best for users.

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[Jerome Mayhew]

The Minister wants flexibility, and he says that is why amendments 123 and 206—tabled by myself and the hon. Member for Didcot and Wantage respectively—should not be agreed to. Will the Minister set out the circumstances in which he thinks it would not be appropriate for the organisation to focus on

“delivering improved productivity and efficiencies”

or on

“customer experience and satisfaction”?

Why does he need flexibility to ignore those objectives?

[Keir Mather]

No, I am not willing to say that those objectives, in principle, should not be pursued as a result of this legislation. The question is where within the Bill these things reside. If we are talking about short-term objectives relating to GBR’s operational efficiency as an organisation through, say, a key performance indicator, that is best placed within the business plan. If we want legal duties to ensure that we improve passenger experience or the reliability of train services, they are best placed as legal duties. There is a question about where we apportion the responsibilities and accountability mechanisms within the Bill. I do not believe that schedule 2 is the right place to be as prescriptive as the shadow Minister intends with those specific requirements.

On amendment 123, there is already a mandatory requirement in the Bill for the Secretary of State to obtain advice from the ORR on whether the activities that GBR is to undertake represent value for money. Unlike the list of potential objectives, that is mandatory. I also direct the Member to the assurances that are already in the Bill: there is a duty on GBR to make efficient use of public funds when exercising its functions, and a clear role for the ORR to assess the value for money of GBR’s proposed plans and to publish that assessment.

[Keir Mather]

The purpose of issuing advice is so that we can enter into an era for the railways where these discussions happen in a way that is far more commonplace than the broken-down patterns of accountability that currently exist. I therefore envisage the sort of adversarial situation that the right hon. Member suggests occurring less than it does under the existing rail system.

The ORR and the Secretary of State are both required to consider value for money when they advise on and approve the business plan. I hope that the relevant measures will show the hon. Member for Broadland and Fakenham that we are serious about getting the best out of GBR and provide him with enough reassurances to seek to withdraw his amendment.

Amendment 122 would specify that the Secretary of State’s statement of objectives may include an objective on increasing passenger numbers and freight. It would narrow the wording of the objective in paragraph 2(3)(a) of schedule 2 from relating to passengers and freight to just increasing the numbers of those things. I do not think it would be wise to require ever-increasing passenger numbers as an objective in itself. Different objectives—such as increased reliability, improved passenger experience or references to spare freight paths—might contribute to that overall outcome while being more important in the moment. Again, that should be for the Government of the day, not inflexible legislation, to decide. I urge the hon. Member for Broadland and Fakenham to withdraw his amendment.

Finally, amendment 206 proposes to expand the list of potential topics that could be covered in the statement of objectives, with the hon. Member for Didcot and Wantage suggesting the inclusion of a section on customer experience and satisfaction. The current list in the Bill is purely illustrative, so Secretaries of State may in future add to the list of topics, and include just some of the topics or slightly different ones in their statement of objectives. I invite the Committee to note that the illustrative objectives already included in the Bill contain reference to the carriage of passengers or goods, as well as to fares and accessibility—all matters that are important to passenger experience—so it is unclear what more would be achieved through the amendment, which would simply add a further example to the list.

Furthermore, the Bill contains a duty for the Secretary of State and GBR to exercise the functions in the manner best calculated to promote the interests of the users and potential users of railway passenger services. Unlike the list of potential objectives, that duty is intended to be mandatory. I hope that demonstrates to the hon. Member for Didcot and Wantage that we consider passenger experience to be absolutely central to GBR’s objectives, and provides him with enough comfort not to press his amendment.

[Jerome Mayhew]

We have heard with interest what the Minister has to say, but I am wholly unpersuaded that he is adequately reflecting the needs of the industry, so I will seek to press amendment 120 to a Division.

Question put, That the amendment be made.

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[Jerome Mayhew]

I beg to move amendment 124, in schedule 2, page 62, line 9, at end insert—

“(d) measurable performance indicators for each statutory duty listed in Section 18.”

This amendment would require the business plan to include measurable performance indicators for GBR’s duties.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 125, in schedule 2, page 62, line 9, at end insert—

“(3A) The plan must set out how Great British Railways will ensure its activities minimise costs to the taxpayer.”

This amendment would require GBR to consider how to minimise costs to taxpayers.

Amendment 127, in schedule 2, page 62, line 22, at end insert—

“(c) whether carrying on those activities will be done in such a way as to minimise costs to the taxpayer.”

This amendment would require the ORR to provide an assessment of whether GBR will minimise taxpayer costs before the Secretary of State approves the business plan.

Amendment 128, in schedule 2, page 62, line 27, leave out from “publish” to the end of line 28 and insert—

“the approved business plan in full, apart from any sections which it considers to contain commercially sensitive information, and”.

This amendment would require GBR to publish its full business plan saving any sections which are commercially sensitive.

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[Jerome Mayhew]

We now turn to paragraph 4 of schedule 2, which deals with the business plan and approval by the Secretary of State.

To receive public funding under paragraph 4, GBR is required to include in its business plan an explanation of how it will meet the objectives set by the Secretary of State. Amendment 124 seeks to strengthen this obligation by requiring GBR to set meaningful KPIs against which its performance and meeting its statutory duties—as set out in clause 18, which we will come to in a bit—can be measured. We had the saga of the missing licence; now we have the saga of the missing KPIs—and 19 other documents. This is important, given the absence of any direction from the Government on KPIs, despite being repeatedly requested on the Floor of the House over a number of months. The only response from the Government as a result of that probing is that they will be “robust”, whatever that means, hence the need for amendment 124.

Amendments 125 to 128 would strengthen GBR’s focus on minimising the cost to the taxpayer and increasing the role of the Office of Rail and Road to make sure that that happens. Amendment 125 would require an express focus on how plans will minimise costs to the taxpayer, which is too often overlooked—the Bill makes hardly any reference to value for money. The taxpayer is ignored entirely. This amendment would make it a legal requirement to address that and would—under the maxim that “you get what you measure”—drive behaviour.

Amendment 127 would require the Office of Rail and Road to provide an assessment of whether GBR’s plans to minimise costs to the taxpayer are, in fact, likely to do so. That would be undertaken before the Office of Rail and Road approves the business plan. Again, this is about driving behaviour through focus and making sure that the taxpayer is not forgotten in the deliberations between nationalised Great British Railways and civil servants at the Department for Transport.

Finally, amendment 128 would require GBR to publish its full business plan, save for commercially sensitive sections, which they should of course have a carve-out from displaying to their potential competitors—although most of their competitors have been designed out under the wording of the Bill. Amendment 128 would welcome transparency, which—given the huge amount of public funding that the organisation currently requires and no doubt will continue to require—is necessary, so that the public can see how their money is being spent, and whether the organisation is focused on driving down the cost to the taxpayer and driving up value for money.

I commend all the amendments to the Minister.

[Keir Mather]

I thank the hon. Member for the amendments, which seek to add requirements to the production of GBR’s business plan and the ORR’s advice on that plan. However, on the subject of the publishing of advice, I briefly return to a question that was put to me by the right hon. Member for Melton and Syston. I feel that I was unnecessarily circumspect in the answer that I gave him, and it did not reflect the incisive nature of his question, which was about a mandatory requirement that exists in the Bill for the Secretary of State to obtain advice from the ORR on whether the activities of GBR represent value for money, and whether or not that advice can be published. I tell him that the ORR must publish a summary of that advice, and it can publish the advice in full. Although I do not wish to predict the future, I expect that it will likely to so, as part of its work in holding the Government to account. I hope that that is a full answer for the right hon. Member.

[Keir Mather]

Committees move in mysterious ways—that is all I will say.

I will take each amendment in the group in turn, starting with amendment 124, which would require GBR to develop key performance indicators for each of its statutory duties. I am sure the hon. Member for Broadland and Fakenham will agree that KPIs should be realistic and measurable, so they would also need to be grounded in the specific proposals for what GBR intends to deliver over the next five years. They also need to be allowed to evolve over time, to ensure that they are most relevant to GBR’s planned delivery and can be effectively used to track GBR’s progress.

The way an indicator is set out can influence how an organisation behaves, and we should be able to refine them over the course of several funding periods, to get GBR to deliver in the way that it needs to. Therefore, a more flexible process works better than fixing the nature of the indicators in legislation—and I give way to the hon. Member.

[Jerome Mayhew]

The Minister is a mind reader; I was just about to ask him to give way. He says he cannot agree to amendment 124 because we need flexibility in the future, but he will see that it refers to

“measurable performance indicators for each statutory duty listed in Section 18”,

so that flexibility would only run so far as any alteration to the statutory duties set out in his own clause 18, which GBR has no ability to change. The Government do not intend for there to be flexibility, so why does the Minister say he needs it?

[Keir Mather]

I respectfully disagree with the shadow Minister’s interpretation. This is about how GBR discharges those legally binding duties, and whether we should be overly prescriptive about the means by which it does so. It is important to have flexibility. Given the amount of technological change that we have seen in railway processes over recent decades, as well as socioeconomic factors and the need for GBR to balance those duties, we cannot be overly prescriptive about how we ask it to meet them—apart from the fact that it is legally required to do so.

I assure the hon. Member that GBR’s business plan will have not just a robust but a comprehensive set of KPIs against which it will be held to account. Progress against them will be tracked, and GBR will publish updates in line with the requirements in the Bill. The ORR will also monitor GBR and its business plan, and provide advice to the Secretary of State.

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[Laurence Turner]

On amendments 125 and 127, I have full sympathy with the ambition of reducing costs to the taxpayer wherever possible. However, the word “minimise” is important here, because a natural reading would be to bring that cost to a minimum.

Each Government have recognised that there is a balance to be struck between the charges raised against the taxpayer, fare payers and other users of the railway. We heard evidence from Richard Bowker, the former chief executive of the Strategic Rail Authority, who has contributed what is sometimes known as Bowker’s law—there are only two sources of income to a railways: passengers and taxpayers.

I fear that if these amendments were incorporated into the Bill, the natural outcome would be that fares would rise, as indeed may charges levied upon freight users of the railway. For that reason, I hope they are not supported.

[Jerome Mayhew]

Mr Western, you get what you measure. We on this side of the Committee are very keen that we measure the level of involvement for the taxpayer and that we do our best to look after the taxpayer in the design of this structure, so I intend to press all the amendments.

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[Keir Mather]

I thank the right hon. Member for Melton and Syston for his contribution. He is right to note that the five-year funding process has a different period from that of the spending review. It is tested in the sense that the funding process for Network Rail works similarly now. As was acknowledged in the oral evidence from the ORR, there is not in reality a cliff edge through the five-year funding settlement, as funding always tends to roll over the five-year boundary, but five years is the envelope through which those decisions take place.

That is my assessment of how the process works; if I have failed to answer any of the right hon. Gentleman’s questions, perhaps he will illuminate me on what they are and I can provide him with a more fulsome response later on.

Question put and agreed to.

Schedule 2 accordingly agreed to.

Clause 13

Charging and terms and conditions

[Jerome Mayhew]

I beg to move amendment 22, in clause 13, page 7, line 22, leave out “as it thinks fit” and insert “as are reasonable”.

This amendment would ensure Great British Railways only charges what is reasonable for provision of services in circumstances where it is a monopoly supplier.

[The Chair]

With this it will be convenient to discuss amendment 23, in clause 13, page 7, line 28, at end insert—

“(3) A person aggrieved by a charge, or terms and conditions issued under this section, may appeal to the Office for Rail and Road.”

This amendment allows appeals against the charges and terms and conditions issued by Great British Railways under section 13.

Clause stand part.

[Jerome Mayhew]

This afternoon is turning into a marathon session, and the only people who cannot take a comfort break are the shadow Minister and the Minister, so far as I can work out; I have my legs crossed.

Clause 13 allows GBR to charge people to whom it is providing a service relating to its functions—this is the important bit—“as it thinks fit”; there is no qualification there. The clause will allow GBR to charge for services that it provides that are currently chargeable under the existing rail regime, such as the back-of-house services currently provided by the Rail Delivery Group, from which all passenger operators, private and public, including open access operators, benefit.

There is a very significant problem with the wording of the clause, because the difference between now and then is that GBR will be a monopoly provider of those services. If we add the two factors together—first, the fact that it is a monopoly provider and secondly, that it is allowed to charge as it thinks fit, with no qualifying criteria—the result is at least the opportunity for GBR to abuse its position to inflate charges and kill competition. GBR will be in direct competition with competitors that can only buy those services from GBR. We know that that will cause a huge issue for open access operators because they have told us so, as GBR will once again be acting as a player and as the referee. That is a clear conflict of interest designed into the structure that the Bill creates. The clause needs to have much greater protections on the calculation of access charges.

The Government use the example of the back-of-house services currently provided by the RDG to explain what would be applicable under the clause. The Rail Delivery Group is a membership organisation consisting of train operating companies, owning groups and Network Rail. The key services they provide are journey information, reservation systems, railcards and working to improve performance, safety and accessibility.

The language in the clause as drafted gives Great British Railways carte blanche where no alternative provider of those key services is allowed—a conflict that will lead to abuse and is contrary to the direction of the Competition and Markets Authority, which expressly said that there needs to be a level playing field when dealing with matters of this kind. That is the Government’s Competition and Markets Authority, so who is right here—the CMA, or the Bill as drafted?

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[Keir Mather]

I thank the shadow Minister for tabling amendments 22 and 23 and the hon. Member for South West Devon for speaking in their support. Amendment 22 seeks to require GBR to set reasonable charges for the delivery of its functions, and amendment 23 seeks to require the ORR to provide an appeals role for anyone who considers the charges set by GBR to be unfair.

On amendment 22, we clearly agree that GBR must act reasonably when setting charges and there is no suggestion that it will not do so. In fact, safeguards to ensure that GBR cannot levy unreasonable charges already exist in the Bill. Clause 18 requires GBR to act in the public interest and to ensure that railway service providers, such as devolved operators, freight operators and open access operators, can plan, invest and make decisions about their own businesses. When setting charges, GBR must therefore do so in a manner consistent with those duties, and it must not set charges that undermine operators’ ability to run viable and successful businesses.

[Jerome Mayhew]

The Minister refers to clause 18(2)(e), which states:

“They must exercise the functions… in the manner best calculated to be in the public interest”.

Can the Minister not see that GBR’s assessment of what is in the public interest could very well be what it considers to be in its own interest, because it is a public body? The provision would allow GBR to prioritise its own interests, such as the increased receipt of revenue from third-party operators, at the expense of the competition. That is not the safeguard that the Minister says it is, is it?

[Keir Mather]

I disagree with the shadow Minister’s interpretation of how the duties function in this regard. GBR cannot take a wholly self-interested, cynical interpretation of what constitutes “best use” under clause 60, which we will turn to in due course. GBR has to make a best-use decision that takes into account the needs of open access and freight. Also, under GBR’s duties, it must take account of promoting the interests of users and potential users of the railway, some of whom—even though open access constitutes a small proportion of the railway network usage overall—will be people using open access operators. Further, the duty in clause 18(2)(d) says,

“so as to enable persons providing railway services to plan the future of their businesses with a reasonable degree of assurance”.

Such persons would not be able to do so if they were being levied unreasonable charges.

There are supplementary safeguards that I will turn to. Existing competition legislation will also require GBR to ensure that the charges it sets are fair, non-discriminatory and not anti-competitive. The ORR will retain its enforcement role in consumer and competition law, concurrent with the Competition and Markets Authority, so it will be able to ensure that GBR is treating the private sector fairly. It is also important that, as a public body, GBR must be able to recover appropriate costs from those who benefit from the services that it provides. If it were prevented from doing so, the burden would ultimately fall on taxpayers and passengers. The Government’s ambition is to have a successful rail industry that attracts investment and can support its own costs, rather than unnecessarily relying on the taxpayer.

Amendment 23 would introduce an appeals role for the ORR on these charges. Again, we fully support the principles of fairness and transparency that underpin the amendment. For significant charges, such as charges for access and the use of infrastructure, the Bill already provides an appeals route to the ORR. However, an appeals route to the ORR for every possible charge that GBR may levy in relation to its statutory functions is clearly disproportionate. The amendment would require an appeals route to be provided even when those charges may be small, such as contributions to cover a railcard cost.

Clause 13, in its sum, simply ensures that GBR can recover the costs of managing and delivering services, such as back-office retailing services, by charging those who use GBR services, such as non-GBR operators or retailers. It is essential that GBR should have a clear statutory right to recover costs from users of its services. That supports the sustainability and efficiency of GBR’s operations, and ensures that taxpayers and GBR customers are not subsidising the operations of others. Importantly, it replicates how those cross-industry functions are paid for today. The Bill and existing competition law already provide adequate protections for third parties and a route of redress, should that be required. I urge the hon. Member for Broadland and Fakenham to withdraw his amendment and commend clause 13 to the Committee.

[Jerome Mayhew]

The Government’s defence is pretty extraordinary. What they are saying is that GBR should be free to charge unreasonable amounts—otherwise there would be no objection to the wording of the amendment, which simply seeks to put the word “reasonable” into the requirement. The Government say that even though this monopoly provider can charge as it thinks fit, there should be no specific right of appeal and that the other operators should rely on the CMA taking an interest or on wider competition law—in other words, after-the-event litigation.

We all know that in a business environment we can argue about the chaos at the end, but a business can already have been destroyed by a decision from a monopoly provider—on which there is no right of appeal and which could not be held back until an appeal has been heard. This is an absolute charter for GBR to run roughshod over independent retail operators, open access operators and even rail freight. It is with no hesitation at all that I seek to push for a vote on both the amendments.

Question put, That the amendment be made.

--- Later in debate ---

[Jerome Mayhew]

So here we are: this is the eminently sensible approach to providing funding for the ORR to continue its operations as a safety regulator. Clause 14 allows the Office of Rail and Road to require GBR to pay a levy to the ORR for performing its non-safety railway functions. That provides the ORR with a legally guaranteed funding source independent of the Secretary of State or Government. The provision aims to provide the ORR with a stable and predictable funding stream that will enable it to plan and carry out its activities. Those were remarkably similar words to the ones used by the Minister—I wonder why!

What I have described replaces the current system under which the ORR requires Network Rail to pay a fee for it to perform its non-safety functions via the process set out in the Network Rail licence. The ORR, as we all know, is an independent regulator, so decisions on its funding should be kept separate from organisations that have a vested interest in its decisions, which is why GBR, despite paying the levy, will not determine the amount. The amount is agreed between the ORR and the Treasury and then provided by GBR through this levy.

This is one of the few clauses through which the Bill is not actively diminishing the role of the ORR. Instead, it provides the ORR with a legally guaranteed funding source, independent of the Secretary of State or Government—save, obviously, for its negotiations with the Treasury. The aim of that is to provide the ORR with a stable and predictable funding stream that will allow it to plan and carry out its duties successfully. That duty already exists in the Network Rail obligation, as I have already mentioned.

I am glad to see from the Government’s explanatory notes on the clause that GBR will not determine the amount of the levy, which will be agreed between the Treasury and the ORR. It seems that the Government do understand the concept of partiality and bias, but are prepared to admit that only when it comes to certain clauses in the Bill.

[Keir Mather]

I thank the shadow Minister for his support—slightly barbed support, but support nevertheless. I have nothing further to add. I commend the clause to the Committee.

Question put and agreed to.

Clause 14 accordingly ordered to stand part of the Bill.

Clause 15

Rail strategy

--- Later in debate ---

I feel I have said more than enough. I have attempted to be concise, but we have tabled a large number of amendments. I am sure the Minister, in his polite but devastating way, will obliterate them all, but even if he does, I still want to welcome the thought that has gone into clause 15; we definitely need a long-term rail strategy, and it is good that the Bill provides for one. I look forward to his comments.

[Jerome Mayhew]

Clause 15 requires the Secretary of State to publish a document that sets out the long-term strategy for the railway, which we welcome, after consulting with Welsh Ministers and the passenger watchdog. The Secretary of State must keep the strategy under review and publish any revisions.

The clause does not provide any detail, which is part of the problem. The industry is in the dark now, and it will still be in the dark if the Bill ever becomes law. There is no draft prepared. There is no indication of the direction of travel. There is just subsection (4), which is very limited. All it says is:

“(4) The Secretary of State—

(a) must keep the rail strategy under review, and

(b) may revise or replace it.”

Well, with what and when? We are in trouble here, with no direct reference to even the development of rail freight, which we have seen in other parts of the Bill is apparently in the Government’s mind. Amendment 224 would serve to correct that by making specific reference to rail freight.

More widely, the Government have missed an opportunity to set clear targets for the strategy to achieve. Colleagues will know from the debate on clause 3 that we have already tried to amend the Bill to assist with that. Our purpose clause, new clause 1, would have set a clear direction, and new clause 2 would have set KPIs for what the strategy should achieve. That would have helped to inform our set of amendments to clause 15.

We are told that Great British Railways should be the guiding mind, so our approach is that GBR will implement the long-term strategy for rail, based on the Secretary of State’s long-term priorities for the railways. GBR is intended to be the stand-alone expert implementer of the development of the railway. The priorities are set out by the Secretary of State through the licence in schedule 1, access to funding in schedule 2 and the long-term rail strategy. All recognise that the political cycle and control periods are far too short for rail infrastructure projects. The industry really needs more predictable forward views. There is inevitably an uncomfortable fit between the needs of democracy and the political cycle—political views change with general elections and sometimes even between them—and the long-term investment certainty that large projects need. There is currently no indication of how long term the strategy will be, or even what it will seek to achieve.

Amendments 24 and 25, which we debated with clause 13 but would also affect clause 15—I do not seek to repeat the debate, but I wish to mention the impact that they would have—seek to address those failings by requiring the rail strategy to be geared towards enabling GBR to meet its key performance indicators. Without the amendments, the clause will set out a long-term strategy that includes no requirement to set clear growth targets for passenger numbers or freight use, meaning that there will be no measurable outcomes or performance metrics. I intend to seek to divide the Committee on those amendments when the time comes.

The Liberal Democrats’ amendment 134 would ensure that the rail strategy covers a 30-year period. That is logical given the infrastructure life cycle, and any timeframe is, by its nature, arbitrary, but I have to say that 30 years feels on the long side, given the political cycle of four or five years. I wish the hon. Member for Didcot and Wantage well and we should be having a stab at setting out what long term actually means, but that is why we have tabled an amendment that would set the period at 15 years. That would be long enough to show the direction of travel, as he has in mind, but short enough to have some sense of connection between the political cycle and the objectives of the strategy. We may have a difference of opinion, but we are pointing in the same direction.

[Olly Glover]

I understand the shadow Minister’s point, but I put it to him that the fact that our Parliaments tend to be four or five years long is precisely why the strategy needs to be very long term, so that we avoid subjecting our railway to the political cycle and the whims and whimsies of the Government of the day. But perhaps the key point is that the Government’s own guidance on the Bill, in the section entitled, “What is the Long-Term Rail Strategy?”, states:

“It will set out strategic objectives for the railway over a 30-year period.”

Would it not be coherent to put that on the face of the Bill?

[Jerome Mayhew]

From the Government’s perspective, yes, it would be, but we have recent experience—this is a slight tangent, but I hope the Committee will bear with me—of Governments passing key objectives to achieve long out in the distance. I am thinking of the Climate Change Act 2008 and its objective of achieving net zero by 2050. That all sounds good in 2008, but in my view it does not achieve the objective of balancing democratic accountability with a long-term direction. Look, we are slightly arguing about how many angels can dance on the head of a pin. Both parties agree that we want a long-term strategy, but should it be 15 years or 30 years? In a sense it does not really matter, but it needs to be significantly beyond the current five-year control period.

Amendment 137, also in the name of the hon. Member for Didcot and Wantage, would require the strategy to set out a long-term strategy for supporting rural communities in accessing rail travel and co-operating with transport authorities to integrate travel options. It is a worthy objective, although we would want to go further if extending clause 15(1) beyond the railway network and railway services—the catch-all descriptors. The amendment is slightly a halfway house, but it nevertheless points in the right direction, and in so far as it makes progress, we are happy to support it.

Amendment 207, again in the name of the Liberal Democrat spokesman, would introduce a requirement for the rail strategy to consider the rail network as a whole, and the relationship between integrated timetables and infrastructure enhancement to enable such integration. There is perhaps a better solution tabled in the name of my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer), who is engaged somewhere else as we speak—there may be a better way to achieve that outcome.

Amendment 224, which I tabled, would add paragraph (c) to clause 15(1). As drafted, the provision requires the Secretary of State to

“prepare and publish a document that sets out”

her

“long term strategy for…(a) the development and use of the railway network in Great Britain, and…(b) the railway services that the Secretary of State wishes to see provided in Great Britain.”

This important amendment would add a focus on “rail freight network usage”. Rail freight does, in a sense, come under “railway services”, but we need to give it particular focus, and the amendment offers a good opportunity to do so.

Amendment 25, which is also in my name, would require the rail strategy to remain in place

“for a minimum of three control periods”,

which would be 15 years. We have already debated whether it should be 15 or 30 years, but the provision would provide the industry with a genuine long-term strategy and mean that that strategy is less likely to be used as a political football when Governments come and go. The period of 15 years is short enough to have political weight, but long enough to give the certainty that the industry also seeks.

I will briefly mention amendment 260, which was tabled by my hon. Friend the Member for Runnymede and Weybridge. I know that the subject is close to my hon. Friend’s heart because he has told me so, multiple times.

[Edward Morello]

Repeatedly.

[Jerome Mayhew]

Yes, repeatedly, which is great, because my hon. Friend is absolutely fighting for his constituency and his constituents. He has told me of a repeated trouble that communities experience when a level crossing closes very frequently and for long periods with no regard to the economic impact of that on the town in which it is based. That can cause long periods of tailbacks, but there is no consideration of that when the usage of the piece of line is set, and the Bill, as drafted, makes no provision for GBR even to take that problem into account. Amendment 260 would insert clause 15(2A), which states that the

“rail strategy must include a strategy for level crossings (“the level crossings strategy”)”,

and clause 15(2B), which states:

“The level crossing strategy must set out an assessment of the impact of level crossings on the economy and community of the area in which the level crossing is situated, for the purpose of reducing disruption caused by level crossings.”

That is actually a very sensible point, because it recognises that the railway does not impact just trains. If a level crossing temporarily closes arterial routes, there is an impact on other modes of transport, so it would be sensible for a strategy to take into account the full impact of the changes that the Secretary of State has in mind.

Amendment 261, which my hon. Friend the Member for Runnymede and Weybridge also tabled, would insert an alternative subsection (2A) in clause 15, stating:

“The rail strategy must include an assessment”

of

“the ability of passengers to change between…main line rail services”

and from rail services to

“other modes of public transport.”

The amendment would also provide that the

“assessment under subsection (2A) must consider how to reduce delays and disruption to end-to-end journeys involving a change between rail services, or between rail services and other modes of public transport.”

This is, again, my hon. Friend the Member for Runnymede and Weybridge standing up for his constituents and the particular issues that they face with the co-ordination of services. Having heard the experience of Mayor Burnham with the Bee Network in Greater Manchester, the Committee could argue that the increased integration of all modes of transport should properly be a focus of GBR, and the amendment would apply that integration to areas that are not mayoral combined authorities. Later in Committee, we will consider an amendment that seeks to extend the same courtesies to local transport authorities as the Bill extends to mayoral combined authorities, and I know that my hon. Friend the Member for South West Devon will be keen to speak to that.

Liberal Democrat amendment 135, which was tabled by the hon. Member for Didcot and Wantage, would require the Secretary of State to make an international rail strategy part of the Government’s long-term rail strategy. That would specifically look to support new routes and operators, and increase channel tunnel and London St Pancras high-speed rail capacity.

Railways Bill (Fifth sitting)

Jerome Mayhew Excerpts

Committee stage
Tuesday 27th January 2026 Public Bill Committees

[The Chair]

We are now sitting in public and the proceedings are being broadcast. Before we begin, I remind Members to switch electronic devices to silent, and that tea and coffee are not allowed during sittings. The selection and grouping list shows the way in which amendments and new clauses have been arranged for debate. Any Divisions on amendments or new clauses will take place in the order in which they appear on the amendment paper—I remind Members, after Thursday afternoon’s confusion, that new clauses will be voted on at the end of proceedings.

Clause 7

Directions by Secretary of State

[Jerome Mayhew (Broadland and Fakenham) (Con)]

I beg to move amendment 12, in clause 7, page 4, line 30, after “functions” insert—

“where the Office for Rail and Road, in carrying out its functions under section 69A of the Railways Act 1993 (as inserted by section 74 of this Act), has deemed Great British Railways to be in breach of its statutory functions.”

This amendment would restrict the Secretary of State’s ability to give directions to Great British Railways to circumstances where the Office for Rail and Road has deemed Great British Railways in breach of its statutory functions.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 11, in clause 7, page 4, line 30, at end insert—

“(1A) A direction under this section may only be given as a last resort, and only if the executive head of Great British Railways has had to be removed because Great British Railways is failing to comply with its key performance indicators as set out in section [Great British Railways: Key Performance Indicators].”

This amendment limits the Secretary of State’s power to give directions to Great British Railways to a last resort.

Amendment 13, in clause 7, page 4, line 31, leave out subsection (2).

This amendment would remove the Secretary of State’s ability to say that Great British Railways can only exercise unspecified functions after consulting the Secretary of State or with the Secretary of State’s consent.

Amendment 14, in clause 7, page 5, line 9, after “publish” insert “and lay before Parliament”.

This amendment would require the Secretary of State to lay any directions given to Great British Railways before Parliament.

Amendment 16, in clause 7, page 5, line 11, at end insert—

“(5A) If the Secretary of State uses the powers in this section to give a direction to Great British Railways about the general level and structure of fares for travel on railway passengers services designated under section 25 or 26, then the Secretary of State must publish the assumptions, criteria, and objectives underpinning any direction.”

This amendment puts a duty on the Secretary of State to publish the assumptions, criteria and objectives used when giving any direction about the level or structure of fares, so decisions can be assessed against passenger growth and affordability.

Amendment 15, in clause 7, page 5, line 12, leave out subsection (6).

This amendment would prevent the Secretary of State enforcing failure to comply with a direction through civil proceedings.

Amendment 17, in clause 8, page 5, line 35, leave out subsection (2).

This amendment would remove Scottish Ministers’ ability to say that Great British Railways can only exercise unspecified functions after consulting them or with their consent.

Amendment 18, in clause 8, page 6, line 4, leave out subsection (6).

This amendment would prevent Scottish Ministers enforcing failure to comply with a direction through civil proceedings.

Amendment 24, in clause 15, page 8, line 21, at end insert—

“(1A) The document set out in subsection (1) must ensure that Great British Railways is focussed on meeting the key performance indicators set out in section [Great British Railways: Key Performance Indicators].”

This amendment would require the rail strategy to be geared to enabling Great British Railways to meet its key performance indicators.

New clause 4—Secretary of State: power to dismiss the executive head of Great British Railways—

“(1) The Secretary of State may dismiss the executive head of Great British Railways.

(2) The Secretary of State shall only exercise the power in subsection (1) if—

(a) Great British Railways is not meeting a key performance indicator set out in this Act,

(b) Great British Railways has failed to act on guidance given by the Secretary of State under section 9 of this Act.”

This new clause gives the Secretary of State the power to dismiss the executive head of Great British Railways if the organisation is failing to perform against its statutory duties.

[Jerome Mayhew]

It is just as pleasurable to have you in the Chair today as it was last week, Sir Alec.

I remind hon. Members that clause 7 gives the Secretary of State the power to issue and publish directions to Great British Railways relating to its railway activities. It also outlines how the Secretary of State must obtain consent from Welsh and Scottish Ministers before giving directions relating to their devolved services, except where powers are used in relation to the access regime. The clause further outlines how GBR will be required to comply with directions, which are mandatory and binding, and intended to be used as a so-called

“responsive tool for necessary course correction, rather than as a proactive tool to set requirements on GBR,”

or, as further clarified in the explanatory notes, as “a last resort”.

Interestingly, although the explanatory notes state that a direction by the Secretary of State is a mechanism of last resort, the clause itself gives no indication to substantiate that. Instead, it suggests that the Secretary of State can act independently of their Welsh and Scottish counterparts’ views, especially as there is a reliance on non-legislative measures. My first question to the Minister is, therefore: why is this supposed last-resort requirement not on the face of the Bill?

When dealing with matters relating in particular to the interpretation of devolution, the risk is that any decision taken by the Secretary of State may be disputed by the devolved nations and end up as a political football, which only increases lawyers’ profits. Would it not therefore be prudent to set out in the legislation exactly what is meant? Without a clear breakdown of the procedures and directions, surely we run the risk of granting the Secretary of State a large degree of power with very limited oversight.

The clause gives the Secretary of State unrestricted power, other than for operations in Scotland and Wales, to intervene in the running of GBR. That is a step too far. While it is justifiable for the democratically elected Government of the day to set and agree GBR’s strategic objectives, key performance indicators and business plans, after those are set out, the Government’s role should be to hold GBR to account for the delivery of the targets, objectives and strategies, and not to tell it how to do so on a day-to-day basis.

A question arises on clause 8(4), and I would be grateful if the Minister could provide clarity on the oversight system outlined in clauses 7 and 8. Subsection (4) states:

“Before giving, varying or revoking a direction under this section the Scottish Ministers must consult the Secretary of State.”

Presently, GBR must decide whether a decision directly affects devolved services, but the Bill provides no statutory test, which leaves a delivery body making politically sensitive judgments, further increasing the risk of challenge by devolved nations. Clarity for Members, especially those from the devolved nations, will be extremely helpful, so I would be grateful if the Minister would address that directly.

Under subsection (5) of both clauses 7 and 8, directions must be published, but there is no requirement for them to be laid before and scrutinised by Parliament—the old trap of creating transparency without consequence. A reporting or laying requirement, perhaps through the Select Committee, would turn publication into genuine accountability. However, I am interested to hear what rationale the Minister has not to allow greater scrutiny of GBR in Parliament. Again, perhaps he will address that directly in his response. That is the rationale behind our suggested amendments to require the Secretary of State to lay directions before Parliament, in order to allow us to scrutinise the decisions in greater detail.

There is a fundamental question about leadership and who is the key decision maker. We are told repeatedly by the Minister and others that GBR is the directing mind, but will that really be the case if the clause goes through unamended? If GBR really is the directing mind, what is the necessity for the clause? It is a recipe for decision paralysis, with GBR, given the decision-making structures, undermined by guidance—we will come on to that when we discuss clause 9—and by directions from the Department for Transport in the name of the Secretary of State.

Clause 7 really does risk creating the worst of both worlds. We will have the cost of GBR and its oversight structures—we are told in the recently published job application for the part-time chair that GBR will have more than 100,000 employees; it will be an enormous organisation, with its own senior management team—and then we will have the same again, with an overactive Department for Transport second-guessing GBR’s day-to-day working and being able to give guidance and directions as a result of clauses 7 and 8.

[Joe Robertson (Isle of Wight East) (Con)]

As my hon. Friend describes the growing size of the Department for Transport and Great British Railways, I am slightly reminded of the Department of Health and Social Care, and NHS England. The Government talk of doubling up and so are winding back by abolishing NHS England, but here they are doubling up in the Department for Transport over Great British Railways. I wonder whether he has any reflections on that analogy.

[Jerome Mayhew]

It is not a perfect analogy, because GBR is at least intended to be more akin to a business—a nationalised business—but my hon. Friend is entirely right that where we have two organisations in competition, each one thinking that it runs the railways, that is a recipe for confusion at the least, and disaster at the worst.

This is not an idle concern, because it has happened before. We all remember the Virgin West Coast franchise debacle in 2012, when the slightly arm’s length process of franchising did not go well, causing a communal panic in the Department for Transport. The phrase, “Something must be done to prevent this from ever happening again,” was no doubt repeated many times. The result was that more and more micromanaging took place by the Department for Transport in the setting of franchises. The Department no longer talked only about outcomes that needed to be achieved, leaving how companies went about that entirely up to them, which is the appropriate way to draft a franchise agreement. Instead, that devolved into mechanisms of how a franchise should be operated.

We had that mission creep, and I fear that under the Bill we might get exactly the same approach with GBR. It will be set up with the best of intentions, and perhaps in the first two or three years all will run smoothly and the directing mind in practice might well be GBR, but then something will happen, because something always does happen in the real world, with lots of people doing their best but sometimes making mistakes, and there will be a collective gasp from the Department of Transport, because it will feel like it is on the hook, so “Something must be done to ensure that this doesn’t happen again.” We have designed into this mechanism a structure that allows the removal of GBR’s operational independence, and it does so without any reference to actions of last resort by the Government—the Bill is silent on that.

We talk about the Secretary of State, but we all know that officials in the Department for Transport will be advising the Secretary of State on what he or she should be doing in a particular circumstance, and there will be a power grab. Without amendment, the clause will absolutely allow for that. We should be alive to the real-world experience that we all have and take this opportunity to strengthen its wording in order to design out that issue and ensure that there is proper accountability—with GBR accountable to the Secretary of State and, through the Secretary of State, to Parliament—and that operational independence stays with what will be a nationalised business, rather than creating a railway version of NHS England, as my hon. Friend the Member for Isle of Wight East mentioned a moment ago.

I have tabled two amendments to address this issue. Amendment 12 would limit directions to circumstances in which the Office of Rail and Road assesses GBR to be in breach of its statutory functions. It could be argued that the Secretary of State should have an emergency lever; that is fair enough, because bad things happen. One of our great complaints before the election, although I am beginning to hear it from Labour Ministers as well, was, “We pull the levers but they’re not attached to anything—we have no power.” When we form the Government after the next election, we will want to have levers that are attached to something, and I accept that it is necessary to have an emergency lever to pull should a significant unforeseen event occur—another pandemic, perhaps—and an intervention be required.

However, amendment 12 would still allow the Secretary of State to intervene in emergency scenarios, as the ORR would deem that such events make it impossible for GBR to conform to its business plan targets. Clause 74 sets out the ORR’s power to monitor GBR’s performance. Elsewhere in the Bill, we shall argue that the ORR needs more teeth to hold GBR to account, and this provision limiting the potential for the Secretary of State to intervene until such time that an independent regulatory body has recognised that GBR has not been able to fulfil its functions will be an important safeguard.

Amendment 11 would put the words “last resort” on the face of the Bill, and would provide that a direction may be made only after the removal of GBR’s chief executive officer. The intention behind the amendment is to treat GBR as a business, which I think we all agree is what it is intended to be—albeit a nationalised one. Where there is a board of non-executive directors, they can question the executive team, and they can challenge decisions and require the chief executive to explain and defend the direction of the company. However, when push comes to shove, and the decision is made that the organisation is moving in the wrong direction, the weapon available to the chairman is the removal of the chief executive officer.

If GBR is operating on a day-to-day basis with oversight from the Department for Transport—the Secretary of State—and concerns arise as to its direction or performance, the sequence of severity of the response should not start with guidance from the Secretary of State and then mandatory directions. They might be the final requirement, because we all need those levers, but surely they should come only after the chief executive has been challenged and then removed, just as in the private sector with an arm’s length majority investment.

[Olly Glover (Didcot and Wantage) (LD)]

I certainly see what the hon. Member is trying to do with these amendments, and the Liberal Democrats share some of his concerns about the balance between holding GBR to account and GBR’s autonomy. However, does he not feel that amendment 11 may go a little too far? Laudable though the KPIs that he has set out are, I am not sure that any railway in this country has ever achieved them all at once, and if the amendment were made we may very well go through a revolving door of chief executives before the Secretary of State can give any direction.

[Jerome Mayhew]

That is a perfectly fair challenge, but amendment 11 would not require the CEO’s removal by the Secretary of State if those KPIs are not met; it would be a necessary first step to demonstrate that the KPIs are not being met, and then there would be a discretion. I suppose the hon. Member is really arguing that my safeguard is not quite as strong as it could be. Nevertheless, it would be a step in the right direction, and it would not require the removal of the chief executive.

New clause 4 would give the Secretary of State the power to dismiss the CEO of GBR on the grounds that a KPI has not been met and—this is an important bit, which the hon. Member for Didcot and Wantage might recognise gives the new clause some weight—GBR has failed to act on guidance that has been issued by the Secretary of State under clause 9. It is sequential. First, the chief executive is given guidance from the Secretary of State. Most chief executives worth their salt would take notice of official guidance given by their 100% shareholder, but if for some reason they fail to act on the guidance and they are still missing their KPI, then the power to dismiss would be exercisable. In my submission, that is a good approach.

Clause 7(2)—the “interference clause”—anticipates minor direction changes, which is exactly the kind of direction that should not be issued and is contrary to the explanatory notes. We are told that the powers in the clause will be used only as a last resort, but subsection (2) states:

“A direction under this section may provide, in particular, that a function is only to be exercised—

(a) after consulting the Secretary of State, or

(b) with the Secretary of State’s consent.”

The clause is not an emergency lever. It is quite clear from the drafting that the circumstances in subsection (2) cannot apply to a last-resort emergency lever. It is saying, “You can carry on doing things, but we need to have oversight in the nitty-gritty.” It is truly an interference clause.

Is it the Government’s intention that directions issued under clause 7 will be, as described in the explanatory notes, used as a “last resort” emergency brake, or do they intend—this is the case as the Bill is drafted—that the Secretary of State will give himself or herself the power to intervene in day-to-day management, even down to the level that individual decisions will not be taken until there has been consultation with the Secretary of State or the Secretary of State has consented to them?

Clause 7(5) needs improvement. It requires publication by the Secretary of State, but anticipates no role for Parliament in that oversight. The organisation Rail Forum said:

“We agree that this is desirable to ensure GBR remains arm’s length and is allowed to manage its own affairs.”

That is important. The industry itself is saying that GBR needs to be operationally independent and to manage its own affairs. Amendment 14 would correct that issue. It would require the Secretary of State to lay any decision before Parliament—the right place for primary scrutiny. Rail Forum supports the amendment. It says:

“This is essential to ensure that normal Parliamentary process is not bypassed.”

Amendment 16 would mean that decisions on fares imposed on GBR by the Secretary of State can be assessed against passenger growth and affordability. Such a direction would have a huge impact on the financial position of GBR, because decisions on fares and passenger growth and affordability are central to revenue. It is crucial that decisions are made on proper evidence and in line with the objects of GBR.

--- Later in debate ---

[Rebecca Smith (South West Devon) (Con)]

I do not want to stop my hon. Friend’s flow, as I believe he is probably coming to the end of his remarks. On listening to his eloquent speech, it strikes me that these amendments point directly to the fact that if Parliament had more of a role under the Bill, we would not even get to such places. Ultimately, if there is scrutiny throughout the process and an ability for Parliament, once GBR exists, to hold the Secretary of State and GBR to account, we should avoid the need for a civil proceeding, because a lot of the issues could be nipped in the bud before getting to that stage.

[Jerome Mayhew]

My hon. Friend is entirely right. That will be a theme of our comments on and challenges to the Bill throughout the progress of our scrutiny: accountability without responsibility is no accountability at all. Time and again, we see an unwillingness from those who drafted the Bill to trust the role of parliamentarians as scrutineers.

As a former businessman, I know—I have not made this one up; it is not unique thinking—that, in any organisation, you get what you measure. That will have been the case in any organisation that hon. and right hon. Members may have worked in in the private or public sector: the NHS has targets because it gets what it measures. At the moment, the Bill measures very little on GBR’s performance, and where it does, that disappears off to the Department for Transport and is reported to other civil servants.

As parliamentarians, we know our value in holding not only GBR to account but the Government of the day, which will not always be a Labour one. That is our important role, which is done through the Select Committee process and more widely. As parliamentarians, we should seek to improve the Bill. I recognise that we will have a number of Divisions during this process and I am unlikely to win a single one, but I urge the Government to listen—perhaps to the private comments of its own Committee members; they do not have to tell me about it—because these are genuine areas of improvement that we as parliamentarians should be encouraging the Government to add to the Bill. On that note, I will stop.

[The Parliamentary Under-Secretary of State for Transport (Keir Mather)]

It is a pleasure to see you back in the Chair, Sir Alec. I thank the shadow Minister, the hon. Member for Broadland and Fakenham, for this group of amendments, which are primarily about the direction powers in the Bill.

Amendments 11 and 12 would each limit the use of the Secretary of State’s direction power, requiring that the power can be used only as a last resort, after dismissing the head of GBR and if GBR has breached its functions. I understand the intention here, which is to ensure that these direction powers are used proportionately. I assure the hon. Member that the Government agree with that aim—we absolutely must empower GBR to be the directing mind of the railway—and I agree that the railway will not work if Ministers are forced to keep meddling in it in the way that they do today. That said, this power is not the problem that he thinks it is.

The new direction power is common in relationships between the Secretary of State and arm’s length bodies. Other examples in the transport sector that are not limited to last resort use include the power in the Infrastructure Act 2015 for the Transport Secretary to direct National Highways. Hon. Members will note that these types of powers are not frequently used. These amendments would create restrictions that undermine the principle that the Secretary of State should retain the ability to respond to persistent, urgent or unforeseen issues where rapid intervention is required.

[Jerome Mayhew]

Where is the reference to persistent, urgent and unforeseen incidents in the Bill?

[Keir Mather]

The Government have made it clear what the provisions within these clauses are designed to implement. I ask the shadow Minister to look at legislation passed under his own Government that contain direction powers that are remarkably consistent with those found in the Bill, and at the directions provided in other pieces of legislation. Does he feel that they represent mission creep when it comes to Secretary of State responsibilities? He will note that these type of powers are not used frequently. We believe that these amendments would create restrictions that undermine the principle that the Secretary of State should retain the ability to respond as required.

Critically, a direction should come before there has been a serious impact. The removal of an executive or the ORR deeming GBR to be in breach of its statutory functions would suggest that a serious failure has already occurred. In the latter case, it is unclear in what situation the hon. Member would consider a breach of a statutory function to have occurred, which would introduce ambiguity into the system.

Restricting the direction powers by limiting their use to only the most serious of instances would mean that any directions were more likely to be more prescriptive and severe. I am sure that the shadow Minister would not wish to see the public or industry seriously impacted before the Secretary of State acted. The new powers also recognise the GBR board as the railway’s directing mind while enabling Ministers to intervene to support GBR to deliver or correct course.

Amendments 13 and 17 would remove the ability for the Secretary of State and Scottish Ministers, respectively, to say that GBR can exercise unspecified functions only after consultation or with their consent. I do not think that these amendments are helpful. They would effectively remove the clarity on the directions power, but would not restrict the legal scope of it. They would simply lessen the legal transparency around the use of the direction.

There are circumstances where requiring GBR to consult the Secretary of State or Scottish Ministers before taking a specific action would be entirely reasonable, and maybe even desirable for GBR. For example, where GBR needs to address a specific risk or situation as part of a wider national co-ordination or cross-industry response, the Secretary of State may need to ensure that actions are in line with national responses. The ability to revoke a direction allows Ministers to ensure that they operate in a proportionate and rational way in response to time-sensitive issues.

Amendments 15 and 18 would prevent the Secretary of State and Scottish Ministers, respectively, from enforcing GBR’s failure to comply with a direction through the civil courts. The Government need to retain the right to independent enforcement with fixed remedies that compel GBR to act across a range of mechanisms, to ensure a pathway to protecting taxpayers’ money and the delivery of the Government’s objectives. I hope the hon. Member would agree that it is completely undesirable to remove any ability for Ministers to hold the executive to account.

I also politely say that the hon. Member cannot have it both ways: either GBR is an organisation that could exercise mission creep and is too independent of scrutiny, whether from Parliament or anywhere else, or the powers in the Bill place too many strictures on it from the perspective of Government. That point of clarity is required in the Opposition’s overall perspective on the Bill.

[Jerome Mayhew]

As I have set out in my series of amendments, the appropriate oversight and control is to remove the chief executive. The Minister must accept that, if the Secretary of State thinks that the organisation is going in the wrong direction, is not listening to guidance or has gone rogue in some way, they have the unfettered power to remove the chief executive officer at any stage. If he does not think that is the case, he should say so now, because if the Secretary of State has the power to remove the chief executive officer and put in place someone who will do his bidding, then none of this is needed, is it?

[Keir Mather]

I will turn in a moment to the specific points that the shadow Minister raises around the chief executive, but I think I share his views on the importance of GBR’s compliance with its fundamental functions and with the law. That is why amendments 15 and 18 are peculiar—they do not recognise GBR needing to be able to have enforcement through that particular route.

Amendments 14 and 16 both relate to the transparency of directions. Amendment 14 would require directions to be laid before Parliament, but we believe that is unnecessary as provisions in the Bill already require directions issued under this power to be published, and Parliament has the power to call the Secretary of State to account should it take the view that more information is required.

--- Later in debate ---

[Keir Mather]

I agree with my hon. Friend’s sentiment that it is unwise to hypothesise about what potential eventualities could befall GBR in specific instances, as the shadow Minister encourages me to do. What is important—my hon. Friend made an important point around consistency, both in our legislative work and the work of the Government more broadly—is to ensure that the bedrock upon which GBR sits is legally sound, and that all eventualities that may arise are catered for through provisions within the legislation that offer sufficient breadth. That is why amendments 15 and 18 do not serve the legal accountability purposes that the shadow Minister seems to want to stress.

[Jerome Mayhew]

rose—

[Keir Mather]

I will give way one final time and then I want to make some progress.

[Jerome Mayhew]

I am grateful that the Minister is being very generous. In my opening remarks, I asked him to give me some real-world examples of when injunctive relief might be required. Could he not forget to provide those?

[Keir Mather]

I had not forgotten the shadow Minister’s request for me to provide specific examples. In a sense, though, I do not believe that it would be wise to do so. I do not think that the purpose of this Committee is to speculate about what GBR may or may not do in future; it is important that we develop a suite of measures that create the accountability that is required.

--- Later in debate ---

[Keir Mather]

It puzzles me that with all the other transport bodies that have been set up—National Highways is an interesting example—I do not recall a series of concerns having been outlined that one of the most robust systems of parliamentary democracy in the world was in some way, shape or form incapable of—

[Jerome Mayhew]

Will the Minister give way?

[Keir Mather]

I will, but very briefly, and this is the final time.

[Jerome Mayhew]

I am grateful to the Minister, though I remind him that we do have 14 sessions; we are not cantering to the last fence. He prays in aid National Highways. We are all constituency MPs. We all know how frustrating it is trying to deal with National Highways. I do not want to make a headline unnecessarily, but my personal view, as a constituency MP, is that trying to deal with National Highways in the interests of my constituents is almost impossible. Why would he choose that as the example to follow when designing accountability for GBR?

[Keir Mather]

In a spirit of cross-party contrition, I agree with the shadow Minister’s point; it is a fair one, and perhaps that was a poor example.

In the setting out of the long-term rail strategy, through the Secretary of State, there are myriad means of Parliamentary accountability to ensure that process is done in a way that reflects the long-term interests of the railway and of passengers. There are robust means of scrutiny through this House and other means of which Parliamentarians can avail themselves of, and of which the hon. Member for South West Devon has availed herself multiple times through the passage of this Bill.

I would like to conclude on this grouping and so I want to speak to new clause 4. As the hon. Member for Broadland and Fakenham will be aware, with bodies of this nature the Government’s long-standing policy is that the Secretary of State of the sponsoring Department has responsibility for appointing the non-executive chair of the board. The executive team is then accountable in the first instance to the organisation’s non-executive board, and it is right that trust is given to the expertise and experience of the executive and that there is appropriate distance between the Secretary of States and those tasked with the day-to-day operational management of the organisation. That is one of the benefits of the GBR model.

Legislating to dictate a process whereby the chief executive is dismissed directly by the Secretary of State for failure to meet a single KPI is not appropriate and it cuts across all guidance and understanding of effective partnership between Government Departments and their arm’s length bodies. For those reasons, I cannot accept these amendments and urge the hon. Members to withdraw them.

[Jerome Mayhew]

I am wholly unconvinced by the explanation the Minister has given. On many of the clauses and amendments I have put forward, and those put forward in the names of other Members, one can see both sides of the argument; on this one, I think the Government are entirely wrong. They are setting up a structure using another arm’s length non-governmental body, National Highways, that is a byword among us constituency MPs for a lack of accountability and for being a frustrating body to deal with. That is not the right direction for the Government to be going in and I will push the amendments to a Division.

Question put, That the amendment be made.

--- Later in debate ---

[Jerome Mayhew]

The Committee will be pleased to hear that I am not going to reheat my arguments on clause 7, but we have not yet discussed clause 8. The arguments inevitably mirror each other to a degree, because clause 8 in the main seeks to extend the provisions of clause 7 to Scottish Ministers.

Clause 8 will grant Ministers in Scotland the power to issue and publish directions to GBR—so far, so similar—and GBR will be required to comply with those directions. However, the Secretary of State has ensured that they will have the ability to remove a direction of Scottish Ministers where it is inconsistent with her directions. The clause requires the Secretary of State to consult Ministers in Scotland before revoking and must publish any revocations.

The clause suffers from the same issues as clause 7, as I have already intimated: granting the Secretary of State, and then by extension Scottish Ministers, the ability to direct GBR, which is meant to be operationally independent. That is the first confusion. I will not rehash the arguments, but hon. Members should take it as read that I repeat them here.

As the Minister just mentioned, clause 8(7) will allow the Secretary of State to revoke a direction given by Scottish Ministers under that clause. That is confusion No. 2. We anticipate circumstances in which GBR has a direction of travel—that is not meant to be a rail pun—with which the Scottish Minister disagrees; the Scottish Minister issues a direction for GBR to go in a different direction, and then the Secretary of State disagrees with that direction and issues a revocation. What a recipe for confusion, delay and poor governance that creates!

Who is really in charge of the railways in Britain? It is certainly does not sound as though it is GBR, which is being second-guessed on the one hand by the Scottish Ministers and on the other by the Secretary of State. It does not sound as though Scottish Ministers are in charge even in Scotland, because they can suffer a revocation from the Secretary of State. Yet the consultation document tells us, as the Government have told us time and again, that

“GBR will be operationally independent, staffed by experts and professionals from the rail sector…who will be empowered to deliver for passengers and freight customers without government interference in day-to-day decision-making.”

When did that change? Perhaps the Minister can let us in to the secret. Clause 8 not only prevents GBR from being independent—as clause 7 does—but prevents devolved Ministers from acting within their own devolved settlements without being second-guessed by the Secretary of State.

I accept that the Scottish Cabinet Secretary for Transport, Fiona Hyslop MSP, when speaking about clause 8 during the Transport Committee evidence session, seemed not to oppose that oversight, as she recognised that certain aspects, such as access and freight, remain reserved. It seems that Scottish Ministers are content to accept the clause as drafted because a further memorandum of understanding will create firebreaks between non-devolved powers, in which the Secretary of State may intervene, and devolved powers. That could be okay, but we as a Committee do not know, because we have not seen the memorandum of understanding, even in draft.

We are going to come back to this issue again and again. There are a plethora of documents designed to support the operation of GBR—to support this skeleton Bill—and yet we have not seen them. How can this Committee do our job of scrutinising this Bill line by line, seeking to improve it and to ensure that it achieves the objectives that the Government say it does, when 19 documents and counting—documents that are crucial to the actual running of the railway both in Scotland and in the United Kingdom as a whole—are absent, even in draft?

Bill Reeve, the director of rail reform for Transport Scotland, when invited to add further to the remarks from the Cabinet Secretary, said:

“An awful lot will rely on the memorandum of understanding to flesh that out and give examples.”

There is a question for the Minister surrounding this memorandum of understanding for Scottish and Welsh Ministers. A lot of the powers in the Bill seemingly rely on a document that is not part of the Bill. Will the Minister provide details of the memorandum of understanding prior to the passage of this Bill? If not, why does he refuse to let us know what the memorandum of understanding is likely to stay? Why does he believe that Parliament should approve a working arrangement between the devolved Governments on which no consultation has been undertaken?

I will speak further in detail on the memorandum of understanding when we reach clauses 23 and 24, but it is important that Ministers note that the current framework of the Bill relies on a document that has little oversight or clearly defined objectives, and which we have not seen.

[Keir Mather]

On memorandums of understanding, I point the shadow Minister to the fact that the heads of terms for the memorandum of understanding with the Welsh Government have already been published. On the overall principle on the development of memorandums of understanding, the stakeholders who gave evidence to the Committee were very clear that the process is being carried out in close consultation with devolved Governments and that it is very common for such operational documents to be developed in consultation in this way.

We are creating an operational framework by which GBR can function as an organisation. It is very important that that platform exists before the devolved settlements that will dictate the operational reality of how the railway works are layered on top.

On the shadow Minister’s point about direction powers, these are the same direction powers that exist, almost like for like, with Great British Energy, Great British Nuclear and the North Sea Transition Authority. They are there to respond to urgent and pressing matters. His points on overreach should have applied to the creation of those organisations as much as to the creation of GBR.

The factual reality of how the direction power has been used in the case of oil is that only one direction has been issued in 10 years. It is the Government’s intent—we have been very clear in saying so—that this direction power must operate in a similar way and only respond to urgent, pressing and persistent matters.

On the issue of direction from Scottish Ministers, the Secretary of State cannot revoke a direction if it pertains purely to a devolved matter, but Scottish Ministers did agree that revocation powers are necessary when there are conflicts in directions. Speaking from my perspective on how this Bill puts the devolved settlement at the centre of how the railway functions, there are sufficient methods to create accountability, mutual working and shared recognition of priorities and ambitions across devolved Governments, the UK Government and GBR, so that I do not envisage a revocation of a direction being used regularly. It is only there to ensure the smooth function of the railway.

Amendment 166 agreed to.

Amendment made: 167, in clause 7, page 5, line 8, leave out

“operation of a GBR-provided Welsh service”

and insert—

“exercise by Great British Railways of functions—

(i) on behalf of the Welsh Ministers in accordance with arrangements made under section 4, or

(ii) under a contract awarded under section 31(4)(b).”.—(Keir Mather.)

This amendment broadens the circumstances in which the Secretary of State must obtain the consent of the Welsh Ministers, where giving directions to GBR.

Amendment proposed: 14, in clause 7, page 5, line 9, after “publish” insert “and lay before Parliament”.—(Jerome Mayhew.)

This amendment would require the Secretary of State to lay any directions given to Great British Railways before Parliament.

Question put, That the amendment be made.

--- Later in debate ---

I commend amendment 143 to the Committee and look forward to the Minister’s comments.

[Jerome Mayhew]

I will deal briefly with amendment 143 and develop some arguments on the other amendments. I congratulate the hon. Member for Didcot and Wantage on tabling amendment 143, which pushes in exactly the same direction that I have been pushing today, and also last Thursday, in developing the concern about increasing micromanagement by Department for Transport officials in the name of the Secretary of State, which will undermine the independence of GBR as a tactical organisation.

The culture is already there: the Department has been micromanaging the railways to an increasing extent since 2012 at the latest. This Bill needs to change culture. It is not a steady-state Bill; it is a once in a generation opportunity to change the culture not just of GBR, moving it away from Network Rail, but of the Department for Transport, which is as necessary as the other cultural change. If this Bill is to achieve what it is meant to, the Department’s relationship with the railways should properly be changing. Amendment 143 is a modest but important proposal that would go some way to facilitating that.

Dealing with the group as a whole, and continuing the theme of the exercise of functions and guidance by the Department, the Opposition once again note the contrast between the supposed independence of GBR and the various mechanisms that the Department and the Secretary of State have managed to wheedle into the Bill to grant themselves extra powers, whether as a last resort or, as I fear, to create a micromanaging charter, and where that last resort, as it has been described, has no qualifying criteria—although as we have heard from the Minister, that is seemingly of little consequence.

The clause enables the Secretary of State to “issue and publish guidance”, with notable devolved exceptions, which will allow the Secretary of State to

“clarify policy intentions to GBR.”

The explanatory notes acknowledge that

“in most cases requiring course correction, guidance would be used before directions,”

although I note that it is not required. The Government anticipate that they could move straight to directions if they wish to. However, subsections (1) and (2) are very clear:

“The Secretary of State may give guidance…or revoke guidance”

without any qualifying criteria at all.

What is guidance? It is a steer short of direction, and an application for an injunction against GBR—which we have just voted in favour of—destroys the myth of GBR operational independence. It will be taking orders from the Department for Transport, because that is the status quo ante. Without strengthening this clause and some others, we will confine the relationship between the Department for Transport and the newly created GBR to “more of the same”. That is the fear that we should collectively be fighting against.

The guidance will be not just on the strategic direction or the business case, but on delivery decisions, at the whim of the Department. We can say, “Well, it’s the Secretary of State. This will be done under advisement,” but we all know that in practice it will mean officials micromanaging GBR in the name of the Secretary of State, who will provide the rubber stamp. I fully expect the Minister to reassure me that that would never happen, and that the provision is only for course corrections. Now, if I was in the passenger seat of a vehicle and kept telling someone how to drive, I suppose I would call that a course correction, but they might call it backseat driving. That is the problem: the Bill is designed for backseat driving by the Department for Transport. Will the Minister explain how the clause is nothing short of backseat driving?

I obviously wish GBR the best of luck, and I hope the Minister’s enthusiasm and optimism is fully justified, but I fear that the disastrous consequence of forcing it to walk on eggshells will be constant second-guessing. I have been involved in an organisation in which there was second-guessing—no one was sure who had the decision-making power—and it was a disaster. If there is second-guessing, the organisation as a whole does not know when a decision has been taken. Does the power lie with the board? Does the board have to get clearance from a second board in a wholly different organisation, which might have a different view? Should people in GBR wait for the nod from the Department for Transport before taking action within the organisation, particularly if it is a decision with which its sub-department may not agree?

[Rebecca Smith]

My hon. Friend’s argument highlights the challenge that a lot of the independent retailers, open access users and, potentially, freight users will face if the Bill remains as drafted. Ultimately, they are the people outside the walls of the castle who will struggle to understand who is making what decision and which decision is final. It is a bit like a child going to one parent, getting an answer they do not like, and going to the other parent to get a different answer. Should there be more clarity in the Bill specifically for that reason?

[Jerome Mayhew]

I completely agree with my hon. Friend. When one’s children come and ask for something, the wise answer is always to ask first, “What did your mother say?” If we were able to apply that common sense to this situation, I would not be so concerned. What we have instead is stakeholder management culture seeping into the core aspects of GBR functions.

[Laurence Turner]

Will the hon. Gentleman acknowledge that progress has been made on the cultural issues and the micro-management that he describes? I note in passing that he dates that culture from 2012 onwards, which was, of course, entirely under the Government of which he was part. In the Transport Committee, we heard that until the election, Network Rail had to seek Treasury permission to do as much as put up a passenger footbridge. Is it not welcome that that has now come to an end?

[Jerome Mayhew]

It is certainly welcome, but we are still in the position in which an improvement to a line—something as small as the Haughley junction improvement, which costs roughly £15 million to £20 million—still needs ministerial sign-off from the Treasury before it can be authorised. The Government have some way to go to improve the situation.

This will leave us with a stakeholder management culture. My hon. Friend the Member for South West Devon is entirely right that many organisations in the 60% of the railway that is not being nationalised as part of GBR will be intimately and hugely impacted by GBR’s decisions—or will they? Will they, too, have to wait for the all clear from the Department for Transport? If GBR gets on the wrong side of Ministers or the Department, its course is going to be corrected to all manner of different ports.

The combination of clauses 7 and 9 removes almost any semblance of operational independence from GBR. Clause 9(5) states that GBR

“must have regard to guidance given under this section.”

That sounds soft, but in practice it creates a standing expectation of compliance and makes it impossible for GBR to make dynamic tactical decisions that are free from day-to-day second guessing by departmental and ministerial intervention.

That brings me to amendments 19 and 21, which would help defend the operational independence of GBR. If the Secretary of State is concerned about an aspect of GBR’s performance, they may instead issue guidance to inform GBR of its failure to meet the key performance indicators. Additionally, under clause 10, the Secretary of State may give guidance only if

“Scottish Ministers have drawn to Great British Railways’ attention that Great British Railways is not meeting a key performance indicator…and…Great British Railways has not taken action to remedy this failing within the period of two months.”

As a result, the amendments would apply to GBR in both England and Scotland.

Finally, amendment 20 repeats the argument made about directions or guidance given by the Secretary of State on the general level and structure of fares, and it would introduce new subsection (5A), which states:

“If the Secretary of State uses the powers in this section to give guidance to Great British Railways about the general level and structure of fares for travel on railway passengers services designated under section 25 or 26, then the Secretary of State must publish the assumptions, criteria, and objectives underpinning any guidance.”

That is self-evidently sensible, and I look forward to the Minister agreeing with me.

[Keir Mather]

May I begin by addressing the point about backseat driving? Following the shadow Minister’s remarks, I identified that this is something that we want to avoid not only in future but because it is the existing scenario that we inherited. Right now, under the old system, the Secretary of State is the only person who is really accountable for driving the system forward, and private operators spent more time employing people to decide who was to blame for failures on the railway than ensuring that the railway actually ran in the interest of passengers.

Interference in access and timetabling is another issue that has been raised. The reason why we have diffuse responsibility and muddled accountability in that space is because Network Rail and the ORR, which are two separate organisations, both have responsibility there but they cannot do it in a unified way, and therefore they cannot serve the interests of passengers. That is exactly what the creation of GBR as a directing mind for the railway seeks to avoid, and guidance within that system plays a very important role in removing one of the shadow Minister’s key concerns: an overbearing Secretary of State issuing direction to GBR. Guidance has been designed to create an iterative process by which GBR can enter into a dialogue with the Secretary of State to talk through and deal with common challenges.

The amendments seek to limit the ability of the Secretary of State and Scottish Ministers to issue guidance to GBR under clauses 9 and 10. I am clear that the new system established by the Bill does not intend to involve the Secretary of State or Scottish Ministers in ongoing or individual operational decisions. That is for GBR’s board and the thousands of employees working on the railway. Instead, the guidance power provides a mechanism through which Ministers can respond to overarching issues that might emerge. For example, if the ORR identified persistent failures in GBR’s performance against its business plan, it may suggest guidance from the Secretary of State that could help to support GBR to course correct, and to clarify the desired outcome without requiring more stringent action, such as a direction.

Further, it is not all one-directional guidance. Guidance will be a flexible tool designed to support Great British Railways. For example, there may be instances where guidance is requested by GBR and is issued in a collaborative manner to provide clarity on the policy direction or shared objectives. I also remind members of the Committee that GBR must have regard to the guidance—in other words, it must consider the guidance and weigh it against its other duties and obligations. It is not required to blindly follow the guidance in all cases.

Let me turn to the specifics of each amendment. Amendment 143 would limit the issuing of guidance to solely financial or strategic matters. In seeking to establish a hard line between types of decision making, the amendment would create a false dichotomy. Strategic and financial decisions are likely to have operational implications. The amendment could therefore inadvertently prevent the Secretary of State from being able to issue guidance where there is any operational impact at all, which is clearly disproportionate, given the potentially collaborative and helpful nature of the guidance.

Similarly, amendments 19 and 21 seek to prevent the Secretary of State and Scottish Ministers from issuing guidance unless GBR is not meeting a key performance indicator under the Opposition’s proposed new clause 2. I have already explained why that proposed new clause is nonsensical. I reiterate that KPIs would be better designed and included as part of GBR’s business plan.

--- Later in debate ---

I am happy to reassure Members that we will publish our assumptions, objectives and criteria relating to fares, if doing so will support GBR and the industry to understand the Government’s policy goals. However, that is just good Government; it does not need to be in legislation. With all that in mind, I urge the hon. Member for Didcot and Wantage to withdraw the amendment and the hon. Member for Broadland and Fakenham not to move the others in the group.

[Jerome Mayhew]

You are kind to call me to speak again, Sir Alec; I realise that I did not speak to clause 10 earlier. Briefly, I recognise that clause 10 mirrors clause 9, which we have debated substantially, but it is important to note that Scottish Ministers are given a guidance function, whereas Welsh Ministers are not. That reflects the devolution settlement, whereby Scotland funds and controls its rail system in its entirety, whereas Welsh responsibilities are substantially limited to the core valley lines. I repeat our previous arguments about the express need for operational independence for GBR, without constant second-guessing by Department for Transport officials, which my amendment 21 addresses, and about fares, which I discussed in relation to amendment 20. I will press a selection of the amendments to a Division.

Question put, That the amendment be made.

--- Later in debate ---

[Jerome Mayhew]

We have debated these two clauses. We have made clear our concerns about the current drafting and have tried our best to improve the Bill through a number of very sensible amendments, the majority of which were supported by the Liberal Democrats. We in our turn have supported some sensible amendments proposed by the hon. Member for Didcot and Wantage. I recognise that to vote against the clauses would potentially put a difficult hole in the armoury of the Secretary of State for GBR, so it is with a heavy heart that I do not oppose these two clauses.

Question put and agreed to.

Clause 9 accordingly ordered to stand part of the Bill.

Clause 10 ordered to stand part of the Bill.

Clause 11

Licensing

Question proposed, That the clause stand part of the Bill.

[Keir Mather]

On a point of order, Sir Alec. Before turning to the clause, I would like to correct the record. My Department’s commitment has always been to publish the draft GBR licence during the Bill’s passage, rather than before the Bill leaves the Commons, as I had said in oral evidence on 20 January. Before publication in draft, my Department will undertake engagement with stakeholders to inform the draft. That engagement will start before the Bill leaves the Commons, and I will ensure that hon. Members are involved in it if they would find that beneficial.––[Official Report, Railways Public Bill Committee, 20 January 2026; c. 97, Q180.]

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[Joe Robertson]

It is a pleasure to serve with you in the Chair, Sir Alec. My right hon. and hon. Friends have already spoken at length and I agree with them, but I will add just a couple of short points to place my disappointment on the record that not even a draft of the licence has been presented.

It is good that the Minister has clarified that it will be coming forward sooner than he suggested previously, but the reality is that it is already too late, as we heard from stakeholders last week during evidence. I urge him not to delay any further. Even an outline draft of the licence as soon as possible, rather than a more detailed one, would be clearly better than nothing. He should also bring forward the other 19 documents identified by my hon. Friend the Member for South West Devon—again, in draft form as appropriate—as soon as possible. As I say, it is already too late for this Committee today, as we debate this very clause and schedule. I wish to place that on the record.

[Jerome Mayhew]

I echo all the comments made by my right hon. and hon. Friends. I also thank the Minister for facing up to it with a point of order. It was obvious last week that a point of order was on its way. None of us on the Opposition Benches will hold him to his initial, rather quick, response—no doubt I will do something similar during the passage of the Bill—but that does not let the Government off the hook.

This is not business as usual for a Department bringing through a Bill of this nature. My right hon. Friend the Member for Melton and Syston, an experienced former Minister, gave two examples of primary legislation that also relied on secondary documentation. In those circumstances, the departmental teams did provide skeleton outlines for Parliament, which is what we are, to consider and do our job properly. I do not want the Minister to rush out a quick affirmative like last week, so I ask him to take time to consider, perhaps discuss with his officials, and reply later today on whether he and his officials are able to commit to some form of briefing—some skeleton outline—on the nature of the licence, at a time when we can collectively discuss and debate it, and see whether it points in the right direction.

Clause 11 simply enables GBR’s licensing to be set out in schedule 1, which we will come on to in a moment. That schedule amends part 1 of the Railways Act 1993 and sets out the detailed process by which the GBR licence will be issued and maintained. Both the Secretary of State and the Office of Rail and Road will retain the ability to grant licences to railway bodies other than GBR—for example, open access operators, freight operators and other infrastructure managers such as the core valley lines in Wales. I know we will discuss the contents of schedule 1 and the detail of the licence extensively.

[Keir Mather]

Although we have had an opportunity to discuss some of the provisions regarding the creation of the licence—it being enforced by the ORR with powers that include giving GBR directions to escalate issues to its board, requiring GBR to create and publish improvement plans and issuing enforcement orders— I have heard Opposition Members’ points that they would like an opportunity to discuss those matters more closely and in further detail.

We believe that developing the licence in this way will ensure that what is published for statutory consultation is informed by the development of a stable legislative framework in which to scrutinise the licence—as we are doing now—and can be meaningfully refined and enhanced by a wide range of views. However, I take the point that the shadow Minister and other right hon. and hon. Members have made, and I am sure that we can have further discussions today. I commend the clause to the Committee.

Question put and agreed to.

Clause 11 accordingly ordered to stand part of the Bill.

Schedule 1

Licensing of Great British Railways

[Jerome Mayhew]

I beg to move amendment 109, in schedule 1, page 55, line 10, leave out from “may,” to “grant” and insert—

“at the recommendation of the Office of the Rail and Road in relation to matters related to safety and standards and, after consultation with the Passengers’ Council,”.

This amendment would require the Secretary of State to get a formal recommendation from the Office of the Rail and Road that the GBR licence adequately ensures that licence obligations related to safety and standards are not compromised or undermined.

Schedule 1 contains the meat of what we have been talking about. It amends part 1 of the Railways Act 1993 to set out how GBR will be licensed. Paragraph 2 confirms that GBR should never be exempt from holding a licence, and paragraph 3 inserts new section 7B, which will enable the Secretary of State, following consultation, to grant GBR a written licence to operate specified railway assets. The licence must be in writing and will remain in force unless revoked or surrendered. Surrendering the licence will require the Secretary of State’s consent.

Paragraph 3 also sets out the process for granting licences to persons other than GBR. The Secretary of State and the Office of Rail and Road will continue to be able to grant licences to persons other than GBR to operate railway assets. The ORR may grant such licences only with the Secretary of State’s consent or under a general authority issued by the Secretary of State. Licences must be in writing and will remain in force unless revoked or surrendered. Surrendering the licence will require the ORR’s consent, much in the same way as it previously required the Secretary of State’s consent.

Proposed new section 8A sets out the requirements for the granting of licences by the Secretary of State or the ORR. It provides that a notice must be published outlining the intention to grant a licence, the reasons for doing so, and allowing at least 28 days from the date of publication for interested parties to make representations or objections. There is a duty to consider representations or objections made within the period specified in the notice.

Proposed new section 8B gives the Secretary of State the power to set rules for how licence applications must be made. Among other things, that includes the format of the application, the fee payable—different fees may apply—and the requirements for publishing the application. Before making any regulations, the Secretary of State must consult the ORR. Any fees collected by either the Secretary of State or the ORR in connection with licence applications must be paid to the consolidated fund.

Paragraph 4 clarifies that a licence granted to GBR may specify when the authorisation it provides takes effect. It allows the licence to include a start date or a mechanism for determining it. Paragraph 5 provides that the licence granted to GBR may include a condition requiring it to comply with the provisions set out in separate document that is prepared by the ORR and approved by the Secretary of State. It might be something such as a code of practice—one of these operating documents that we have been talking about so much—and it may relate to the sale of tickets by GBR or third parties, or to services that GBR provides to the rail industry to facilitate railway operations that are of particular interest to the independent retail sector. The paragraph makes it clear that an approved document may be used to regulate GBR’s behaviour in relation to the sale of tickets by parties other than GBR, in the independent retail sector.

Paragraph 6 provides that, before making modifications to a GBR licence, the Secretary of State must publish a notice explaining the proposed modifications and the reasons for them, and must allow the usual period of 28 days for interested parties to make representations. There is a duty on the Secretary of State to consider representations or objections to the notice made within the period specified.

Paragraph 7 clarifies that the ORR must consult the passengers’ council before making any amendments to passenger or station licences that relate to functions of the council. The ORR must also send a copy of the modifications to the council as soon as practicable. Paragraph 9 clarifies that any licence under section 8 of the Railways Act 1993 that was in force immediately before the changes made by the schedule come into force will remain so, per the conditions and periods set out in the licence, unless it is revoked or surrendered.

Here is the mystery of the missing licence: where is it? We have explored this at some length, and the Minister is going to go away and see what he can rustle up in the Department’s cupboard to point us in the right direction, or at least to give us the direction of travel of the missing licence. In oral evidence to the Transport Committee, Ben Plowden, chief executive officer of the Campaign for Better Transport, said:

“I think the licence will be critical. There are various references in the documents that the Government published to a ‘streamlined licence’, so I would be quite interested to see what that means relative to the current licence that applies to Network Rail. I think the Government are going to consult on the draft licence, so we will all have a chance to look at it.

The other point I would make is one I made earlier, which is that the licence will be one of many documents the Government will produce in the next year to 18 months. There is the long-term rail strategy and GBR will produce its business plan. There will be the access and use policy; the new periodic review process; and MOUs with Ministers in Scotland and Wales. There will be guidance on partnerships with mayoral combined authorities, and guidance on the right to request full rail devolution. There is a huge amount still to come.

Understanding how the licence intersects with those other documents and processes is going to be critical, because between them they will add up to the set of arrangements that determine whether GBR is successful or not for passengers. We have to see the licence in the context of all the other things that will be guiding, directing and shaping what GBR does, how it invests, and what it does operationally.”

That is the experts in the industry repeating what the Opposition have been arguing repeatedly today and last week. More accurately, it is the other way around: we have been listening to the industry in a way that the Government have not, and have been expressing the deep concerns in the sector that the current proposals are half cocked. Huge chunks of the direction, guidance and memorandums are simply missing, including the licence that the schedule is designed to address.

[Rebecca Smith]

The Minister spoke earlier about the consultation. It is worth restating that it is not the final draft but a consultation on the draft that is going to happen. We will have sight of the final version of the licence way down the road of the Bill’s progress, and ultimately the final licence may not be ready before scrutiny of the Bill is complete. Does my hon. Friend agree with me that that is something that we need to address? Hopefully the Minister will reassure us.

[Jerome Mayhew]

My hon. Friend is absolutely right. We have made that point as forcefully as we can. I trust the Minister when he says that he will take it away and do his best with his ministerial and departmental colleagues, but it is not just a matter of saying, “We kind of understand that licences already exist. Licences have been issued by the Office of Rail and Road. It will not be some kind of copy and paste, but taken from what already exists and we are going to get something similar here.” As Ben Plowden said, there are various references in the documents that the Government have published to something very different: a streamlined licence. That begs all sorts of questions about what is anticipated to be removed from the licence. The Department for Transport has got as far as saying it is going to be smaller, perhaps significantly smaller because it is streamlined, but this is critical.

The licence of ORR is a mission-critical document that anyone who works in the industry would acknowledge, yet we are told it is streamlined, and therefore elements of what is traditionally considered to be a licence under the current system are anticipated to be removed. Is the Minister able to tell us what parts are likely to be removed? What is it? Because the Government documents refer to a streamlined licence, he can tell the Committee what that means. The Department says it is going to be streamlined, but what does it intend to remove to justify that description? It must be somewhere within the Department; otherwise those words would not have been used in the supporting documentation. There is no excuse for the Minister not to describe the definition of a streamlined licence and what is anticipated.

My hon. Friend the Member for South West Devon made the point that the Minister has corrected the record on when the draft licence will be provided during the passage of the Bill through both Houses, but in the next breath he said there will be consultation on that document, which has not yet started. How can that consultation be anything other than a paper exercise? The Minister seems confident that he can go through a consultation process that has not yet started, that the Department can then properly consider the contributions and come to a considered view and redraft the licence, taking into account all the comments, good, bad and ugly, that the consultation came up with, and then produce the draft licence in the two or three months that the Bill has to run through both Houses. That is an extraordinary position. It suggests either that the Minister will have to come and make a second point of order in a couple of months’ time, or that the consultation to which he refers is an absolute farce, because the Government have already decided what they want to do. They are going through the performance of a consultation, but they have already made up their mind. Perhaps the Minister will tell us which one it is.

Amendment 109 would constrain the Secretary of State’s ability to modify GBR’s licence without first seeking consent from the ORR and the passengers’ council. It is part of a series of amendments including amendments 110, 112 to 116 and 233, to which I will speak later. The Government strategy is that the Bill will be the legislative shell for the creation of GBR. Crucial matters of detail, such as the licence under which GBR will operate and important long-term strategies, business plans, targets and so on are separate and, at this stage, missing. Such details matter and deserve proper scrutiny.

We know that other plans and targets are unlikely to be set until after the Bill is enacted, so it is important to include strong checks and balances. That is the purpose of amendment 109. At present, the Bill merely requires the Secretary of State to consult the Office of Rail and Road. Legally, that is weak; after consultation, the Secretary of State may simply ignore whatever the ORR comes up with. The amendment and those linked to it would require the Secretary of State to obtain the Office of Rail and Road’s agreement for the licence to be issued. Subsequent amendments would require the Office of Rail and Road’s agreement for the licence to be modified.

Modification of the licence requires consent from the new passenger watchdog. If the passenger watchdog is to be as powerful in championing the interests of passengers as the Government claim they want it to be, it requires proper powers that go beyond an invitation to be consulted. For that reason, I propose that we put amendment 109 to the vote.

[The Chair]

I note that debate on amendment 109 has included discussion of schedule 1 more generally. In order to use the Committee’s time more efficiently and if the Committee is content, we could debate schedule 1 more broadly now. That would mean that group 20 is not debated; there would just be a formal decision on schedule 1 and debate on group 19 would be unchanged. As that is the will of the Committee, we will take that approach.

--- Later in debate ---

[Keir Mather]

I thank the hon. Gentleman for the amendment, which is intended to prevent the Secretary of State from granting a licence to GBR unless the ORR gives a formal recommendation that licence obligations related to safety and standards are not compromised or undermined. The amendment does not specify what the ORR’s recommendations would need to contain or how it would operate in practice. The Government recognise the importance of effective regulation in the rail sector, particularly in relation to safety. The safety of our railways is a priority, and we will ensure that it is central to GBR, so that our railways continue to rank among the safest globally. The Bill makes no changes to the existing safety regime, which has proved to be exemplary.

In practice, amendment 109 would give an approval role to the ORR on matters relating to safety and standards ahead of the GBR licence being granted by the Secretary of State. It would confuse the clear accountabilities that the Bill establishes, which place responsibility for drafting, consulting on and granting the GBR licence with the Secretary of State, with the ORR then enforcing against its provisions. That aligns with the Government’s approach to regulation: Ministers set policy and strategy, and regulators provide validation and reassurance to the industry.

The Bill already requires a consultation on the contents of the GBR licence and specifies that the ORR and the passenger watchdog must be consulted as part of that. That will ensure that any concerns about safety and standards can be raised and considered appropriately ahead of the GBR licence being granted. The amendment would confuse accountabilities and add additional processes where they are not needed. I therefore urge the hon. Member to withdraw the amendment.

[Jerome Mayhew]

I am grateful for Minister’s explanation, but I am not persuaded by it and seek to put amendment 109 to a vote.

Question put, That the amendment be made.