Railways Bill (Twelfth sitting)

Olly Glover Excerpts

Thursday 5th February 2026 Public Bill Committees

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

It is a pleasure to serve under your chairship once again, Mrs Hobhouse. Our amendment 212 relates to what the Minister said: it would remove the restriction on the ORR’s ability to impose fines on GBR for licence breaches. I am hoping that we can find some agreement or that the Minister can improve my understanding of the Bill. I entirely agree with him that we do not want wooden dollars—are we still allowed to say that?—sloshing around the system. We do not want fake money, fake economics or fake regulation. That has not been a strength of the rail industry under the current structure.

The Minister said that the ORR would have the powers to tell GBR to do better and to put a legally binding notice on it. Perhaps this is an extreme thought experiment, but what would happen if GBR said, “Thank you very much, ORR, for your legally binding improvement notice, but we’re not interested—we’re not doing it.”? Is the Minister saying that the ORR could then sue GBR? What would happen next? If he covers that in his summing up, I might not move my amendment—I am sure he feels very threatened given how many Divisions we have won so far.

[Rebecca Smith]

Clause 75 prevents the ORR from issuing directions to GBR relating to providing, improving or developing railway facilities. It also prevents the ORR from imposing a fine on GBR for licence breaches. We think those are both terrible ideas.

The Transport Committee asked Maggie Simpson of the Rail Freight Group:

“What is your view on the ORR’s downgraded power merely to ‘advise’ the Secretary of State on GBR’s performance, rather than having actual powers of enforcement?”

She said:

“I am quite worried about this.”

To the same question, Steve Montgomery from First Rail said:

“Following on from that, the independence element of it—marking your own homework—is a big concern for us. How do we ensure that we do not see a perverse behaviour where GBR looks after its own operations to the detriment of others?”

Nick Brooks from ALLRAIL said:

“I can only echo that. With GBR writing the rules, controlling capacity and being linked to the main operator in the country, there is a structural conflict of interest, unless there is a clear duty of fairness and non-discrimination. I do not know of other European countries that do not have a strong independent rail regulator, across the EU and beyond. To be the judge and the jury at the same time is somewhat worrying.”

Emma Vogelmann, the co-chief executive of Transport for All, told the Transport Committee:

“Our recommendation on the role of the ORR is to retain its independent authority. We are definitely interested to see how that transition of powers, as Ben mentioned, plays out, and how enforceability plays into that.”

For once, the Government need to stop and listen. The sector is speaking with one voice and telling them that this is the wrong approach. The clause needs to be removed in its entirety. It is common for regulators to be able to issue financial penalties to private utility companies that are in breach of their statutory duties. Why should that consumer protection not also be applied to a public body like GBR? Removing clause 75 would restore the ORR as a strong, independent economic regulator.

Government amendment 271

“would ensure that the ORR may not impose a fine on GBR under an order to secure compliance with conditions etc, to align with the amendment to section 57A of the Railways Act 1993 made by clause 75(3) of the Bill.”

The Conservatives are against the whole clause, but, to save time, we will not seek a Division specifically on this amendment—I am sure that everybody will be pleased to hear that. However, as somebody who serves on the Transport Committee and sat through a lot of those evidence sessions, one of the key things that concerned me and some other members of the Committee was the breakdown of the relationship between the ORR and GBR and the weakening of the ORR’s powers. When I heard that evidence, I certainly felt that it was a compelling argument.

Liberal Democrat amendment 212 would remove the restriction on the ORR to impose fines on GBR for licence breaches. That is okay as far as it goes, and we will support the amendment, but we think that it does not quite go far enough. As I am sure Members expect on the basis of what I have just said, we will vote against clause 75 as a whole.