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

TOC payments to government leap from £40m to more than £800m

28/08/2015TOC payments to government leap from £40m to more than £800m

All but two train operators either received less subsidy or paid higher premiums to the government during 2014-15 than the year before, according... more >
Network Rail questions capability of its route bosses

28/08/2015Network Rail questions capability of its route bosses

One of the “biggest challenges” in trying to boost the performance of Network Rail’s operations is having route managing direct... more >
ScotRail fund to ‘breathe new life’ into derelict railway stations

28/08/2015ScotRail fund to ‘breathe new life’ into derelict railway stations

ScotRail and Transport Scotland have launched a £1.5m ‘Stations Community Regeneration Fund’ to regenerate old and disused rail... more >

editor's comment

01/07/2015New Priorities

Is Sir Peter Hendy the right man to get Network Rail’s control period back where it needs to be? It was an open secret that the Department for Transport wanted new blood at the top of Network Rail, and it is hardly a surprise to see a pause in Midland Main Line electrification either – there is only so much money, only so many engineers and only so much plant to get this ‘rolling programme’ of electrification don... read more >

rail industry focus

View all News

featured articles

View all News

interviews

World-leading asset management on London Underground

01/07/2015World-leading asset management on London Underground

London Underground is only the second metro in the world to receive the new ISO 55001 accreditation endorsing its asset management systems. RTM h... more >
Caledonian sleeper: Poor performance figures and the role of new loco's

01/07/2015Caledonian sleeper: Poor performance figures and the role of new loco's

Since becoming a separate franchise, the punctuality and performance for Caledonian Sleeper have dipped substantially. But David Simpson, perform... more >
The 'British Bullet Train'

01/07/2015The 'British Bullet Train'

Hitachi used Railtex 2015 to launch the interior concept for its latest generation of ‘very high speed’ vehicles, the AT400 range. RT... more >

last word

Opening doors into the rail industry

Opening doors into the rail industry

RTM catches up with one of its former business development executives, Jonathan Berry, who is nearly a year into his management graduate scheme w... more > more last word articles >

'the sleepers' daily blog

‘Victoria’ chopped up and unscrewed after Crossrail completion

14/08/2015‘Victoria’ chopped up and unscrewed after Crossrail completion

The final Crossrail tunnelling machine, Victoria, is being broken up and recycled after “finishing her journey” under the capital. ... more >
read more blog posts from 'the sleeper' >

Web call out 1

rail industry events

Fifth international rail human factors conference

14 Sep 2015

The Fifth International Rail Human Factors Conference will be held in London on the 14th to 17t...

read more >

ASPECT 2015

15 Sep 2015

ASPECT 2015 is an international conference covering all aspects of railway signalling, control ...

read more >

The RBF National Annual Dinner 2015

02 Oct 2015

The RBF are delighted to be hosting once again a night of celebration, entertainment, dancing a...

read more >

Elmia Nordic Rail 2015

06 Oct 2015

Nordic Rail is the only dedicated railway exhibition in Scandinavia. It's a fair for companies,...

read more >

Dinner at the Roundhouse

15 Oct 2015

Having just celebrated its fourth year, Dinner at the Roundhouse is well-established as th...

read more >
view all events

back

August 2015

forward
mon tue wed thu fri sat sun
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

comment

Managing fatigue

01/07/2015Managing fatigue

In his second article on fatigue for RTM, Chris Langer, human factors advisor at CIRAS, the Confidential Incident Reporting & Analysis System... more >
Why rail companies may be ignoring the benefits of SMEs

01/07/2015Why rail companies may be ignoring the benefits of SMEs

Suzanne O’Keane, rail and transport community manager at Achilles, examines why rail companies may be reluctant to increase the number of s... more >
Meeting the land referencing challenge of HS2

01/07/2015Meeting the land referencing challenge of HS2

Before the first construction work starts, let alone the first train runs, a phenomenal amount of work is required to ensure the development of a... more >
Are we looking at a new age of elegant, visually appealing rail buildings and trackside structures?

01/07/2015Are we looking at a new age of elegant, visually appealing rail buildings and trackside structures?

The new roof structure at Manchester Victoria station is a fantastic example of what is possible with modern steel manufacturing techniques; it j... more >