Great British Railways ‘risks repeating the mistakes of the past'

Times

10 hours ago

The government's state-owned framework for the railways risks 'morphing into the ghost of British Rail' unless ministers find ways to boost competition and develop fresh income streams, a new report warns.
Concerned that Great British Railways is about to 'repeat the mistakes of the past', the study urges ministers to drop their 'profound and misguided hostility to open access rail competition' and seek ways to cut annual subsidies.
It finds that, with railway revenue at only at 89.1 per cent of pre-pandemic levels, thanks to working from home and a drop in season ticket sales, the taxpayer is spending £12.5 billion a year in subsidy. That is despite the sector accounting for only 2 per cent of all journeys taken by the public.
Tony Lodge: How to make Great British Railways a success
The report, Rail's Last Chance, is from the Centre for Policy Studies think tank. Its author, Tony Lodge, outlines a four-point plan to get the industry back on track. 'It is hard to avoid the conclusion that Great British Railways is a solution looking for a problem — prioritising the nationalisation of the railways over their effective and efficient operation,' he says.
His study follows a damning report last month from the management consultancy Arthur D Little, which found that Britain is embarking on a new era of nationalised railways, including taking back control of private franchised train operators, with no coherent strategy. It quoted one senior rail executive saying the railway was stuck with the Albert Einstein maxim that 'the definition of madness is to do the same things and expect a different outcome'.
Lodge is particularly critical of the government's antipathy to open access rail operators, which run without government contracts or public subsidy. After heavy pressure from the transport department, the Office of Rail and Road (ORR) blocked applications earlier this month for new services from Sir Richard Branson's Virgin Group, FirstGroup's Lumo and the Wrexham, Shropshire & Midlands Railway Company citing 'insufficient capacity on the west coast main line southern section'.
Calling for a minimum of 10 per cent open access on intercity routes by 2030, Lodge argues that they deliver 'better services, more routes, faster trains and cheaper tickets', while lifting the performance of the incumbent operator.
He cites the east coast main line, where Hull Trains, Lumo and Grand Central compete with the state-backed LNER. He says quarterly data shows that LNER has grown passenger numbers by 28 per cent since 2019, while on the west coast the monopoly operator Avanti is 'still struggling to get passengers back' to pre-Covid levels.
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Pointing to the 'enormous missed opportunities for the rail estate to generate wider ancillary income', Lodge's second recommendation is for ministers to examine the potential for property, retail and green energy income across 'the rail sector's 52,000 hectares'. He says there is scope to develop 34 sites for solar energy — enough to power at least 140,000 homes — and room for health hubs at stations.
Thirdly, he calls for the ORR to 'retain its independent regulatory powers' to scrutinise Great British Railways, saying it 'should not be able to mark its own homework'. His final plea is not just for an 'easy, cheap and user friendly' ticketing app but one that also offers such things as a 'rail miles loyalty scheme'.
British Rail was the name for the monolithic state-owned railway business until 1997 by which time the industry had been broken up and part privatised.