Transport operator FirstGroup has submitted its response to the government’s consultation on planned railway reforms, ahead of the upcoming Railways Bill that will pave the way for the creation of Great British Railways (GBR).
While FirstGroup has welcomed the government’s intention to place passengers at the heart of its rail sector plans and broadly supports the establishment of GBR following last year’s initial legislation on public ownership, the company has voiced concerns regarding potential monopolistic impacts.
In its submission, FirstGroup cautions against the risks associated with a single GBR operator, arguing that to truly prioritise passenger interests, the new framework must maintain the ability to procure services from the private sector and actively encourage private investment. This, they contend, will foster healthy competition with publicly owned operators, mirroring successful models in European markets like France and Spain, ultimately leading to better services for passengers.
To effectively champion passenger interests and ensure proper oversight of GBR’s operations, FirstGroup advocates for an empowered independent regulator with the authority to adjudicate fairly and impartially. This, they believe, will safeguard the continued growth of popular open access operators, which have proven a significant success within the rail industry over the past 25 years, delivering increased passenger choice, more affordable fares, and enhanced connectivity across the UK.
FirstGroup highlights the success of its own open access operators, Lumo and Hull Trains, alongside others, in connecting previously underserved areas and providing additional capacity, thereby encouraging a shift towards rail travel and away from less sustainable transport options.
In a bid to support the swift delivery of the forthcoming legislation, FirstGroup has offered practical and achievable policy recommendations aimed at benefiting both customers and communities. These recommendations would also enable the Group to further expand its contribution to the national and regional economy through its successful open access rail businesses and affiliated operations.
Commenting on the submission, First Rail Managing Director Steve Montgomery said:
“Enhancing rail connections is critical to boosting economic growth in the UK. We have long called for reform of the railway sector, and we are keen to see new arrangements introduced which consider the customer and commercial elements of rail, alongside measures on infrastructure.
“Delivered effectively, reform will ensure the industry can grow passenger numbers, generate greater revenues and develop the value of rail in a customer focused, dynamic and efficient environment. To do so, it is essential the Government considers the need for appropriate protections and controls through independent regulation of GBR, private sector investment and open access operations.
“This will ensure open access operators can deliver customer benefits and drive modal shift, while playing a role in ensuring the wider railway offers best value for the taxpayer.
“Across Europe, we see private sector operators co-existing with state-owned services. Such competition is healthy, necessary and in the interests of passengers. It is proven to grow the overall rail market, and it is vital the GBR model allows for the same in the UK.”
FirstGroup’s full submission can be accessed [HERE], with the key recommendations outlined as follows:
Independent regulation should ensure customer interests are defended:
FirstGroup advocates for a stronger passenger watchdog equipped with regulatory powers to ensure passenger interests are prioritised. The Group expresses concern that passengers could be left vulnerable under the proposed industry structure and calls for a statutory requirement for GBR to drive passenger growth, alongside empowering the watchdog to intervene when standards fall short. Additionally, FirstGroup supports the continuation of a unified Rail Ombudsman service across all operators to protect customer rights, and expects GBR to be subject to this service on equal terms with other operators, emphasising the value of the ombudsman’s independence for passengers.
Provision for successful open access services must be protected:
FirstGroup stresses the importance of robust, independent regulation for GBR, featuring fair, transparent, and open decision-making processes for both freight and open access operators. This, they argue, is crucial to ensure open access operators can continue to deliver benefits to customers, encourage a shift to rail, and provide the best value for taxpayers from rail infrastructure. The Group believes the Office of Rail and Road (ORR) should retain its role in setting access policy and regulating charging regimes to guarantee fair and non-discriminatory access for non-GBR operators, including effective rights of appeal and remedies to ensure fair, timely, and objective decision-making.
Private sector investment which secures the best service for customers should be enabled:
FirstGroup highlights the potential financial and economic risks associated with the proposed industry structure, emphasising the need for certainty to foster investment and innovation. While supporting a five-year funding settlement for GBR, the Group calls for a longer-term strategy to underpin investment. They also advocate for immediate collaboration and co-operation to implement improvements, rather than waiting for the potentially lengthy establishment of GBR.
Devolution is key to ensure strong local provision:
FirstGroup generally supports devolution, believing it brings transport provision closer to the needs of local communities and ensures accountability for key local transport decisions. They argue that GBR reforms should ensure private operators can continue to support devolved bodies in the delivery of rail services.
Click here to download FirstGroup’s full submission to the Department for Transport’s consultation.
