The Office of Rail and Road (ORR) has launched a discussion document outlining how it intends to update railway licences held by non-GBR operators, ensuring they are fit for purpose when rail reform is implemented and Great British Railways (GBR) becomes operational.
While GBR will operate under a new, single licence issued by the Secretary of State, ORR will remain responsible for licensing and regulating the wider rail industry, including devolved operators, open access companies and freight businesses. Around 50 non-GBR licence holders currently hold approximately 90 licences covering a range of railway assets, including train services and stations that will not fall under GBR’s direct control.
The regulator says changes will be needed to ensure licences remain aligned with the future structure of the railway and continue to provide clear accountability across the sector. Particular focus is expected to fall on consumer standards and industry-wide coordination arrangements.
Under the proposed reforms, railway licences will continue to serve as a key regulatory tool, enabling ORR to monitor compliance, enforce standards and hold operators accountable on behalf of passengers and freight customers.
One of the most significant changes is likely to stem from the Passenger Watchdog’s expanded role in setting consumer standards across the industry. Areas such as passenger information, accessibility and complaints handling are expected to be covered by binding requirements that apply equally to both GBR and non-GBR operators.
The review will also address industry coordination arrangements. As GBR takes over several sector-wide functions currently managed by the Rail Delivery Group, licence conditions will need to be updated to reflect the new responsibilities and governance structure.
However, ORR has stressed that the exercise is intended to facilitate a smooth transition to rail reform rather than trigger a wholesale review of existing licence conditions. The regulator says it is focused on changes that are necessary to support an effective licensing framework from day one of GBR's operation.
Stephanie Tobyn, Director, Strategy and Reform said:
“This is part of ORR playing its role in getting the rail industry ready for GBR day one."
“Licences may sound technical, but they set out the fundamental principles and processes through which passenger, freight and station operators work and will continue to be essential for us to hold these bodies to account on behalf of passengers and freight customers.”
The discussion document marks the first stage of industry engagement. A formal policy consultation is expected to take place this autumn and will be aligned with the Department for Transport’s consultation on the GBR licence, allowing stakeholders to review both sets of proposals simultaneously.
Subject to the successful passage of the Railways Bill and progress on the new GBR licensing framework, ORR plans to undertake a statutory consultation on specific licence modifications before completing the process ahead of GBR’s launch.
The proposed updates are designed to ensure regulatory consistency across the reformed railway, providing a clear framework for operators while maintaining strong consumer protection and accountability arrangements across passenger, freight and infrastructure services.
Image credit: ORR
