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| Britain’s rail franchise model 'unfit for purpose', say MPs | Britain’s rail franchise model 'unfit for purpose', say MPs |
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| Britain’s rail franchising model is “no longer fit for purpose” and is failing passengers, MPs have warned. | Britain’s rail franchising model is “no longer fit for purpose” and is failing passengers, MPs have warned. |
| Private operators are restricted in how much they can improve services and efficiency and their relationship with Network Rail is “not as coordinated as it should be”, leading to higher fares and poor performance, a House of Commons transport select committee report has found. | Private operators are restricted in how much they can improve services and efficiency and their relationship with Network Rail is “not as coordinated as it should be”, leading to higher fares and poor performance, a House of Commons transport select committee report has found. |
| The MPs have urged the Department for Transport (DfT) to commission an independent review of rail franchising, including the possibility of transferring enforcement powers to the Office of Rail and Road regulator. | |
| The report added that although there can be no “single template” for franchises, there would be merit in obtaining longer agreements covering smaller areas. It advised there would be less financial risk to firms taking on smaller franchises, which could lead to new companies appearing on the market. At the time of privatisation in the 1990s, there were 25 franchises compared with 15 today. | The report added that although there can be no “single template” for franchises, there would be merit in obtaining longer agreements covering smaller areas. It advised there would be less financial risk to firms taking on smaller franchises, which could lead to new companies appearing on the market. At the time of privatisation in the 1990s, there were 25 franchises compared with 15 today. |
| The report came after the Association of British Commuters applied for a judicial review into the government’s handling of the Southern rail crisis. | The report came after the Association of British Commuters applied for a judicial review into the government’s handling of the Southern rail crisis. |
| The group says ministers have acted unlawfully by failing to determine whether managers have breached franchise obligations. | The group says ministers have acted unlawfully by failing to determine whether managers have breached franchise obligations. |
| The transport select committee chair, Louise Ellman, said the current franchising model was “no longer fit for purpose”. | The transport select committee chair, Louise Ellman, said the current franchising model was “no longer fit for purpose”. |
| She said: “While franchising enabled passenger growth and service improvements when it was first rolled out, passenger satisfaction with the railways is falling. Its core objectives are no longer being met, potential benefits are being lost and the passenger is suffering through higher fares and continued underperformance.” | She said: “While franchising enabled passenger growth and service improvements when it was first rolled out, passenger satisfaction with the railways is falling. Its core objectives are no longer being met, potential benefits are being lost and the passenger is suffering through higher fares and continued underperformance.” |
| Transport user watchdog Transport Focus found that passenger satisfaction suffered a “significant decline” over the past 12 months. | Transport user watchdog Transport Focus found that passenger satisfaction suffered a “significant decline” over the past 12 months. |
| Fares rose by an average of 2.3% across Britain on 2 January, sparking protests by public transport campaigners and trade unions. | Fares rose by an average of 2.3% across Britain on 2 January, sparking protests by public transport campaigners and trade unions. |
| MPs advised that a wide restructuring of the system would be “prohibitively impractical” but recommended that as contracts expire, the DfT should consider whether they should be modified to “align better with the specific market they serve”. | MPs advised that a wide restructuring of the system would be “prohibitively impractical” but recommended that as contracts expire, the DfT should consider whether they should be modified to “align better with the specific market they serve”. |
| The DfT said £40bn was being spent on upgrading the railways and the franchising system has brought major investment to help create one of the safest and fastest growing networks in Europe. | |
| A spokesperson said: “We can make improvements and the transport secretary has been clear that it will take new ways of working, more investment and better collaboration across the industry to tackle the challenges ahead.” | A spokesperson said: “We can make improvements and the transport secretary has been clear that it will take new ways of working, more investment and better collaboration across the industry to tackle the challenges ahead.” |
| Paul Plummer, the chief executive of the Rail Delivery Group, which represents rail operators and Network Rail, said passengers and taxpayers had benefited from the franchising system in which rail companies brought new ideas and innovation to Britain’s railways. | |
| Plummer added: “Under franchising, the railway has gone from costing taxpayers £2bn a year in terms of day-to-day costs to now contributing £200m, money which helps to fund the major rail upgrades making journeys more comfortable and reliable.” | Plummer added: “Under franchising, the railway has gone from costing taxpayers £2bn a year in terms of day-to-day costs to now contributing £200m, money which helps to fund the major rail upgrades making journeys more comfortable and reliable.” |