Over the last 10 years, rail passenger journeys in Great Britain have increased by 57% and today over 4.3 million journeys are made by rail each day77. To support this level of growth, the government has committed to upgrading the railway and bringing this largely Victorian asset into the 21st century, including by spending £38 billion on the railways over the 5 years to 201978. As problems at Network Rail have become clear, the government has acted to put the rail investment programme back on track.
Specifically, the government has appointed Sir Peter Hendy, formerly the Commissioner of Transport for London, as the new Chairman of Network Rail. The government has asked Sir Peter Hendy to bring to bear his experience and expertise and do what is necessary to ensure Network Rail can deliver effectively and operate the railways safely, and in particular to report by autumn 2015 with a plan to get the rail investment programme back onto a sustainable footing.
The government will also take further action to improve incentives and drive improvements in Network Rail and the wider rail industry:
•the government has asked Sir Peter Hendy and Mark Carne, Chief Executive of Network Rail to continue with the work started in Network Rail to devolve more power to route managers closer to the front line, so that the railways are more focussed on delivering what passengers need and to drive comparative benchmarking of the efficiency and effectiveness of individual routes – to drive up performance across the network
•the government will also change the way it channels public money through the industry, directing it through the train operating companies, so that Network Rail focuses firmly on the needs of train operators, and, through them, passengers – this will put the customers of the railway back in the driving seat in demanding efficiency and improvements that matter to them, making the best use of scarce capacity on the rail network
•the government will introduce a new approach to station redevelopment and commercial land sales on the rail network, building on the experience of regenerating land around Kings Cross Station and Stratford in East London – the government will establish a dedicated body to focus on pursuing opportunities to realise value from public land and property assets in the rail network to both maximise the benefit to local communities and reduce the burden of public debt
Looking further ahead, the government has also asked Nicola Shaw, Chief Executive of High Speed 1, to advise the government on how it should approach the longer-term future shape and financing of Network Rail. Nicola Shaw will work closely with Sir Peter Hendy in conducting her work, which will be concluded before Budget 2016.