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

Connaught Tunnel refurbishment works complete

29/07/2014Connaught Tunnel refurbishment works complete

Crossrail has completed work to refurbish a disused tunnel in Docklands. The 550m-long Connaught Tunnel, under the Royal Docks next to ExCeL... more >
Lack of contactless payment on National Rail in London ‘will cause confusion’

28/07/2014Lack of contactless payment on National Rail in London ‘will cause confusion’

London’s passenger watchdog says the inconsistent rolling-out of contactless payment – which is being extended to the Tube, DLR and O... more >
Siemens starts UK component production for Thameslink trains

25/07/2014Siemens starts UK component production for Thameslink trains

Production of high-tech electrical components and assemblies for the new fleet of Thameslink Class 700 trains is underway at the Siemens factory ... more >

editor's comment

01/07/2014Too many to mention

The RTM team has been very busy since the last edition went to press, at events big and small. We were there at Infrarail and Rail Live, of course, two great and inspiring shows – as well as the more research-focused Next Generation Rail. Then there was Gen Y Rail, the series of competitions put on by RTM’s own UK Rail Industry Training Trust. That fantastic series of events reached its conclusion in June with a national fin... read more >

rail industry focus

View all News

featured articles

View all News

interviews

Victoria Station Upgrade

01/07/2014Victoria Station Upgrade

Craig Prangley, project director of the Taylor Woodrow/BAM Nuttall joint venture, and Glenn Keelan, programme manager at London Underground, give a... more >
Delivering the North Doncaster Chord

01/07/2014Delivering the North Doncaster Chord

Adrian Elliott, Alliance manager on the North Doncaster Chord at Network Rail, talked to RTM about delivering the new railway flyover. On 26 Jun... more >
Bringing innovation funding together for a brighter future

01/07/2014Bringing innovation funding together for a brighter future

David Clarke, director of FutureRailway, says the programme is building on the success of the Enabling Innovation Team (EIT) thanks to a new part... more >

last word

Great time to be a rail engineer

Great time to be a rail engineer

Phillip Hodgson, rail and property department manager at Matchtech, discusses the opportunities available for rail engineers in CP5. There was a... more > more last word articles >

'the sleepers' daily blog

Responsible Business Practice Royal Gala Awards

25/07/2014Responsible Business Practice Royal Gala Awards

Guest blog by Chris Leech MBE, Business in the Community The huge positive impact businesses are making to society and the environment were ... more >
read more blog posts from 'the sleeper' >

UKRIA banners-05

rail industry events

Steam on the Underground: 150 years of the Hammersmith & City Line

02 Aug 2014

Celebrate the 150th anniversary of the Hammersmith and City line with an exciting opportunity t...

read more >

Steam on the Underground: 150 years of the Hammersmith & City Line

09 Aug 2014

Celebrate the 150th anniversary of the Hammersmith and City line with an exciting opportunity t...

read more >

Steam: Rickmansworth to Chesham

16 Aug 2014

Enjoy a stunning steam train ride on the Metropolitan Line between Rickmansworth and Chesham. O...

read more >

Waterfront Rail Conference: The Future of Railway in Britain

11 Sep 2014

Sharon Hedges, passenger manager, will be presenting to the Waterfront Rail Conference about &l...

read more >

ASPECT 2015 – IRSE Conference

15 Sep 2014

ASPECT is the major international conference organised by the IRSE every 2-4 years with papers ...

read more >
view all events

back

July 2014

forward
mon tue wed thu fri sat sun
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16

High Speed Rail – Vision into Reality

16/07/2014 18:00 - 20:30

The IET, Parsons Brinckerhoff and HS2 Ltd are collaborating on a regional programme of knowledge dissemination on high speed rail across the UK

17 18 19

The 2014 Festival of Modern Tramways

19/07/2014 - 20/07/2014

Now in its twenty-sixth year, the Festival features the highest quality model tramway layouts and displays. There are sales stands to supply the modeller with all the necessary materials, kits, drawings, photographs, books etc., for model tram building. There is a competition, with a trophy given for the best model tram of the show (no competition entry fee, just bring along your models).

20

The 2014 Festival of Modern Tramways

19/07/2014 - 20/07/2014

Now in its twenty-sixth year, the Festival features the highest quality model tramway layouts and displays. There are sales stands to supply the modeller with all the necessary materials, kits, drawings, photographs, books etc., for model tram building. There is a competition, with a trophy given for the best model tram of the show (no competition entry fee, just bring along your models).

21 22 23 24 25 26

Listen to London - The Future of London Underground

26/07/2014 10:00 - 14:00

27
28 29 30 31 1 2 3
4 5 6 7 8 9 10

comment

A slow train to the future?

01/07/2014A slow train to the future?

Malcolm Dowden, consultant at Charles Russell LLP, updates RTM on the HS2 legislation. Parliamentary scrutiny of the first stage of HS2 has just... more >
BIM at New Street

01/07/2014BIM at New Street

Mace is working as delivery partner with Network Rail for the redevelopment of Birmingham New Street Station. Paul Dalton, senior project manager f... more >
Enery audits to hit all businesses

01/07/2014Enery audits to hit all businesses

The government’s decision to implement energy audits on all non-SMEs before 5 December 2015 will cause a headache for every company relying... more >
Making All Jobs Greener

01/07/2014Making All Jobs Greener

Jonathan Nobbs, corporate network and development manager at the Institute of Environmental Management & Assessment (IEMA), discusses the All... more >