Question to the Department for Transport:

To ask the Secretary of State for Transport, when the Department expects DfT Operator Limited to deliver a 3.5 per cent real return as set out in paragraph 11.43 of the Consolidated Budgeting Guidance.

DfT Operator Ltd (DFTO) is the government’s public sector rail owning group. As a head office it is responsible for overseeing its rail operator subsidiary companies. DfT Operator Ltd therefore has minimal external trading activity and therefore it is not currently required to achieve a specific return on capital employed.

The Government does, however, expect DFTO Group to make efficiencies and savings through public ownership of rail services and from rail reform with the creation of Great British Railways. These efficiencies contribute to the more than 50 per cent reduction in the rail passenger services subsidy from £2.4 billion in 2024-25.