The Office of Rail and Road (ORR) has today set out its assessment of Network Rail’s plans for spending during Control Period 7.
Network Rail recently set out how it planned to spend the £44.8 billion budget set out by the Department for Transport for the British rail network over the five-year period.
Whilst acknowledging that Network Rail’s plans largely deliver against the UK and Scottish governments’ priorities, ORR is asking for a renewed focus on better train performance and core network assets like track, structures and earthworks to improve resilience.
ORR has also asked for more detail on certain areas of the plan before they issue its final determination to stakeholders in October.
In it’s draft determination, ORR has also outlined its plans to introduce specific targets that will require Network Rail to improve punctuality, reliability on passenger and freight services whilst also asking for Network Rail to set aside a specific budget to support train performance improvements.
John Larkinson, ORR chief executive, said: I’m pleased to see that Network Rail’s plans respond to government priorities and have not shirked from making clear judgements on how to deliver these within constrained budgets.
“Improving performance for passengers and freight is, however, a top priority and while we acknowledge there is no easy fix, Network Rail has to be more ambitious if positive change is to happen.
“Our assessment is that while the plans are generally well founded, greater investment and focus is needed on the renewal of core assets such as structures and earthworks. These are essential for a reliable and safe service for passengers and freight, particularly given the pressures from climate change.”
Part of ORR’s recommendations includes an increase in spend on core assets of £600 million across the British rail network to ensure that assets are managed sustainably and better deliver on safety.
ORR also propose an increase in financial provisions for severe weather and fluctuating inflation. For England and Wales ORR proposes that Network Rail focuses on a variant of its plan which releases significant funding for risk, which would take the total provision to nearly £2 billion. For Scotland, ORR propose an increase of £100 million in risk planning.
The ORR plan was welcomed by the Railway Industry Association with Darren Caplan, chief executive commenting: “The Railway Industry Association and our members welcome the publication of the ORR’s draft determination.
“The publication provides welcome detail on future plans and comes at an important point for rail suppliers at a time when freight and passenger numbers, and revenues, are heading in the right direction post pandemic. We look forward to reviewing the draft determination and providing our response.
“There is still wider uncertainty looming over rail policy, whether for example the lack of clarity over the timing of legislation to create Great British Railways, the fact an updated Rail Network Enhancements Pipeline has still not been published for three and a half years, or the absence of a clear plan for rolling stock in the second half of this decade.
“So whilst we welcome the publication of the ORR’s draft determination, we urge policy makers and influencers to note that rail businesses continue to need much more clarity over the future structure of rail, and the forward work pipeline, to help them plan ahead and deliver work as efficiently, and as cost-effectively for the taxpayer, as possible.”
Photo credit: Istock, WC Johnston
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