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

Please enter the code shown in the image into the box below
(note: this is case sensitive)



Can't read this one? Try another

rail technology magazine tv

more videos >

latest rail news

Abellio CEO unveils ambitious smart ticketing plans for ScotRail

27/11/2014Abellio CEO unveils ambitious smart ticketing plans for ScotRail

Abellio has ambitious plans for smart ticketing for the ScotRail franchise with the Dutch company looking to introduce new contactless innovation... more >
Network Rail should be incentivised for better use and improving of capacity - ORR

27/11/2014Network Rail should be incentivised for better use and improving of capacity - ORR

Network Rail should be incentivised for improving and making better use of capacity in addition to punctuality, according to Office of Rail Regul... more >
Network Rail to accelerate digital-enablement of Britain’s railway

27/11/2014Network Rail to accelerate digital-enablement of Britain’s railway

Network Rail will spend the next 15 years dramatically speeding up the digital-enablement of Britain’s railways. Paul Harwood from Net... more >

editor's comment

01/11/2014Two BIG events

It’s been a busy week for Rail Technology Magazine, not just because of Sir David Higgins’ major new announcements on HS2 (and HS3, come to that), but also because of some of our own major events coming up soon. First is High Speed 2 The Northern Hub on 6 November, a black tie dinner with some fantastic speakers and what promises to be a great panel discussion. There are full details on pages 92 to 100, but suffice to say th... read more >

rail industry focus

View all News

featured articles

View all News

interviews

‘The ambitions of the rail industry have filled me with excitement’

01/11/2014‘The ambitions of the rail industry have filled me with excitement’

Atkins’ UK rail business got a new managing director this summer – Philip Hoare, who previously led the company’s highways and ... more >
Silwood sidings set for five-car trains

01/11/2014Silwood sidings set for five-car trains

Mike Stubbs, director at London Overground, discusses the completion of the Silwood sidings facility and the challenges faced by the contractors ... more >
Major opportunities for SMEs on HS2

01/11/2014Major opportunities for SMEs on HS2

Approximately 60% of contract opportunities arising in the HS2 supply chain will be awarded to small and medium-sized enterprises (SMEs), Simon K... more >

last word

HS2 Stoke Route launched

HS2 Stoke Route launched

High speed transport specialist Dr Alan James, project director of HS2: The Stoke Route, outlines the benefits of the proposed alternative route ... more > more last word articles >

'the sleepers' daily blog

IET innovation award for Network Rail’s ORBIS scheme

21/11/2014IET innovation award for Network Rail’s ORBIS scheme

We always like to highlight innovation here at RTM. And this week Network Rail’s multi-million pound saving ORBIS scheme was awarded the In... more >
read more blog posts from 'the sleeper' >

UKRIA banners-05

rail industry events

Transport Security Expo

02 Dec 2014

Rail Security Conference alongside Transport Security Expo Trains and Underground. Our att...

read more >

UK Rail Industry Awards 2015

19 Feb 2015

The very first UK Rail Industry Awards in 2014 were widely judged a huge success, with 650 of t...

read more >

Railtex 2015

12 May 2015 10:00

Railtex is the UK's leading rail exhibition covering railway equipment, systems and services &n...

read more >
view all events

back

November 2014

forward
mon tue wed thu fri sat sun
27 28 29 30 31 1 2
3 4 5 6

High Speed 2 The Northern Hub Dinner

06/11/2014 18:00 - 02:00

The High Speed 2 The Northern Hub Dinner brings together businesses, government and the UK rail industry for an exclusive event providing the ideal setting for you to discuss better connectivity between key towns and cities in the North of England and the opportunities these projects will bring to you and your organisation.

7 8 9
10 11

European Rail Congress

11/11/2014

The 2nd annual European Rail Congress will take place in London on 11 November 2014 and will stage a prestigious awards ceremony and summit.

12

Integrated Transport 2014

12/11/2014 08:30 - 16:00

13

Beating the Elements - Railway, Weather and Climate Change

13/11/2014

14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
1 2 3 4 5 6 7

comment

Changing the face of engineering education in schools

01/11/2014Changing the face of engineering education in schools

Susan Scurlock, CEO of Primary Engineer, a not-for-profit organisation established in 2005 to encourage young people to consider careers in STEM-... more >
Connecting HS2 to the community

01/11/2014Connecting HS2 to the community

HS2 will transform rail connectivity in Britain and provide vast opportunities and challenges for businesses. Paul Hanafin, director for infrastr... more >
Affordability and safety risk at level crossings

01/11/2014Affordability and safety risk at level crossings

Martin Gallagher, Futronics Group Ltd managing director and chair of the United Nations Expert Group on Level Crossing Safety, discusses the doub... more >
How we measure railway health and safety

01/11/2014How we measure railway health and safety

Ian Prosser, the Office of Rail Regulation’s director of railway safety, encourages the industry to adopt the regulator’s management ... more >