Rail franchising ‘ended’ to create ‘more effective structure’ in major shake-up of network

Ministers today ended the rail franchising system after 24 years during which passengers have suffered endless delays, cancellations and overcrowding.

Transport Secretary Grant Shapps announced a major shake-up for the rail network to scrap the complicated franchising model and aim to get trains running far more on time.

A series of new “recovery” contracts will focus on high performance targets and simplifying journeys and ticketing.

Transport Secretary Grant Shapps said: “The model of privatisation adopted 25 years ago has seen significant rises in passenger numbers, but this pandemic has proven that it is no longer working.

“Our new deal for rail demands more for passengers. It will keep the best elements of the private sector, including competition and investment, that have helped to drive growth - but deliver strategic direction, leadership and accountability.

“Passengers will have reliable, safe services on a network totally built around them.”

The first stage of the reforms, he added, is to move operators onto transitional contracts.

Emergency Recovery Management Agreements were being brought in from this morning to replace franchising, which has seen several commuter routes into London suffering woeful services.

These agreements will include “tougher” performance targets and lower management fees, set at a maximum of 1.5 per cent of the cost base of the franchise before the pandemic began, and demand better co-operation.

The shake-up aims to cut “excessive capital costs” on the network.

Keith Williams, who led the Williams Review into Britain’s railways, said: “These new agreements represent the end of the complicated franchising system, demand more from the expertise and skills of the private sector, and ensure passengers return to a more punctual and co-ordinated railway.

“I am ensuring the recommendations I propose are fit for a post-Covid world, but these contracts kickstart a process of reform that will ensure our railways are entirely focused on the passenger, with a simpler, more effective system that works in their best interest.”

Train firms will be expected to run almost a full service, as the country faces a second Covid-19 wave, so passengers can travel “safely”.

They will continue to receive substantial taxpayer’s support and a White Paper, to bring in reforms from the Williams Review, will be published later.

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