Latest Rail News

18.12.13

Network Rail reclassified as a public sector body

Network Rail is to be reclassified as a central government body in the public sector, the Office for National Statistics (ONS) has announced. It means that the company’s net debt, currently £30bn, will appear on the government’s balance sheet from 1 September 2014.

The move, which will apply retroactively from April 2004, and has come about following guidance under the 2010 European System of Accounts (ESA10), is likely to increase public sector net debt by about 2% of GDP.

The ONS said: “ONS has concluded that, under ESA10 rules, Network Rail is a non-market body. Consequently, since the financial indemnity which guarantees Network Rail’s debt is provided by Central Government, Network Rail is a central government controlled, non market body classified as part of the Central Government sector.”

The DfT and Network Rail have published a memorandum of understanding to set out how they will work together to develop this framework.

Network Rail stated: “This reclassification of Network Rail as a central government body is a statistical decision that does not alter the company's structure as a not-for-dividend company, limited by guarantee, with Members rather than shareholders. The business acts and operates today as it did yesterday, and its job of delivering a safe, reliable and improving railway for four million daily users continues.”

Transport secretary Patrick McLoughlin said: “I am committed to ensuring that Network Rail maintains the operational flexibility to continue to deliver a safe, punctual rail network and increased capacity for our busy railways and that it is able to attract a high calibre of staff, while still providing value for money and being accountable to Parliament.

“My department will agree appropriate accounting and governance adjustments for Network Rail to ensure it can continue to deliver world class railway infrastructure when the company is reclassified for statistical purposes on 1 September 2014.”

Tell us what you think – have your say below, or email us directly at opinion@railtechnologymagazine.com

Comments

There are no comments. Why not be the first?

Add your comment

 

rail technology magazine tv

more videos >

latest rail news

HS2 can ‘only be as good as local rail connections make it’

17/02/2017HS2 can ‘only be as good as local rail connections make it’

It is of vital importance that investment in the conventional rail network continues over the next 20 years during the development of HS2 to ensu... more >
Settle to Carlisle line on track for March reopening

17/02/2017Settle to Carlisle line on track for March reopening

Considerable progress has been made on plans to reinstate the iconic Settle to Carlisle railway ahead of its scheduled reopening next month. ... more >
GTR failures account for 86% of national decline in rail performance

17/02/2017GTR failures account for 86% of national decline in rail performance

Govia Thameslink Railway (GTR) has, unsurprisingly, once again come bottom of the two separate public performance measure (PPM) charts released t... more >

editor's comment

17/01/2017Rising to the digital demand

The countdown is well and truly on for this year’s UK Rail Industry Awards (UKRIA), and the whole RTM team is looking forward to welcoming you to the fourth edition of this event on 9 February.  Held once again at Battersea Evolution, the prestigious awards ceremony promises to be an extraordinary evening, celebrating some of the major achievements of the industry in the last year. You can see the awards shortlist on pag... read more >

rail industry focus

View all News

interviews

Tackling regulation at its routes

24/01/2017Tackling regulation at its routes

John Larkinson, the ORR’s director of railway markets and economics, speaks to RTM about the move to regulating Network Rail at a route lev... more >
Investing in the future of Scottish Rail

15/11/2016Investing in the future of Scottish Rail

Phil Verster, managing director of ScotRail Alliance, speaks to RTM’s Luana Salles about the recently-published ‘Investing in the Fut... more >
Maintaining the safety momentum

12/09/2016Maintaining the safety momentum

Britain’s railways are currently the safest they have ever been, but there is still room for improvement, Ian Prosser, HM chief inspector o... more >

last word

Making rail fares simpler

Making rail fares simpler

David Sidebottom, passenger director at Transport Focus, explains how a number of initiatives over the next 12 months aim to make rail fares simp... more > more last word articles >

'the sleepers' daily blog

Southern Rail passengers reminded to claim compensation

03/02/2017Southern Rail passengers reminded to claim compensation

Southern’s annual season ticket holders have been reminded that they are entitled to claim compensation due to the franchise’s poor p... more >
read more blog posts from 'the sleeper' >

comment

The role of simulation in ERTMS training and system design

01/02/2017The role of simulation in ERTMS training and system design

Paul Boyle, head of ERTMS at Virgin Trains East Coast (VTEC), discusses the role of simulation in ERTMS training ahead of this year’s &lsqu... more >
Digital railway maintenance

01/02/2017Digital railway maintenance

Tim Flower, head of maintenance at Network Rail, explains how the infrastructure owner is adopting a new approach for condition monitoring to max... more >
Challenges and opportunities for big data in the Digital Railway

01/02/2017Challenges and opportunities for big data in the Digital Railway

Dr John Easton and Dr Shruti Kohli from the University of Birmingham write for RTM about the role big data can play in transforming the country&r... more >
A better railway depends on harnessing technology

27/01/2017A better railway depends on harnessing technology

Paul Plummer, chief executive of the Rail Delivery Group (RDG), argues that we must change the status quo and invest in technology if we are to c... more >