As the Railways Bill returns to Parliament this week, the Future Governance Forum (FGF) has issued a timely warning in its latest paper: without a clearly defined purpose, sound institutional design and genuine autonomy, Great British Railways (GBR) may falter before it ever hits full stride. For those operating across the UK’s rail sector, this moment represents both a challenge and an opportunity to help shape a more coherent, resilient and passenger-focused railway.
A Historic Reform with High Stakes
GBR is the most significant restructuring of Britain’s railways since privatisation in the 1990s. The government’s ambition is clear: to unify track and train under a single public body and replace the fragmented landscape of train operating companies (TOCs), Network Rail and the Department for Transport’s patchwork of roles.
If delivered effectively, this reform could yield substantial benefits: improved service quality, integrated timetables, better use of infrastructure, and enhanced value for money. But these goals hinge on more than structural changes. As FGF puts it, “Success won’t happen automatically with a change of ownership”.
Defining Purpose Before Process
FGF’s central critique is GBR’s lack of a clearly articulated overarching purpose. Despite widespread political support for renationalisation and the consolidation of operational functions, there is still confusion about GBR’s end goal. Is the priority to reduce taxpayer subsidy, increase reliability, grow passenger numbers, support economic growth, or accelerate decarbonisation? The answer, FGF warns, cannot be “all of the above” without creating organisational paralysis.
The absence of clarity risks replicating past institutional failures, such as the short-lived Strategic Rail Authority. For GBR to endure, it must anchor decisions in a shared purpose – from boardroom to platform – that filters through investment strategy, workforce culture, and passenger experience.
FGF suggests one potential framing: “To run a reliable, safe and high-quality railway that unlocks jobs, housing and opportunity across the country”. Whether or not this is the final version adopted, the message is clear—defining what success looks like is now urgent.
Institutional Culture: A Once-in-a-Generation Reset
Rail companies must prepare for a profound cultural transformation. GBR is expected to absorb 17 predecessor organisations, employ nearly 100,000 people, and manage a £22 billion annual budget. The risk is that Network Rail’s existing ways of working dominate by default, entrenching inefficiencies and alienating staff from incoming TOCs and other agencies.
FGF calls instead for a deliberate cultural reset: one that promotes public service ethos, collaborative problem-solving and innovation. This is also a strategic moment to address recruitment and retention. With over a third of rail workers aged over 50, and 70,000 expected to leave by 2030, there is a critical need for a long-term skills strategy that links employment pipelines to social mobility and regional development.
GBR’s leadership will need to move quickly on this front. Board appointments – particularly the Chair and CEO – must reflect both industry expertise and transformation capabilities. A credible, accountable executive team will be central to building confidence within government and across the sector.
Balancing Oversight and Autonomy
The Railways Bill envisions a GBR that is accountable but not micromanaged. Striking this balance will be delicate. The Secretary of State for Transport remains GBR’s sole shareholder, but day-to-day operational interference could undermine the very efficiencies the reform seeks to deliver.
FGF recommends that ministers use their powers judiciously – reserving them for strategic course correction rather than routine decision-making. A clear delegation of authority, underpinned by robust internal accountability mechanisms, will help shield GBR from political volatility while ensuring democratic oversight.
The same principles apply to fiscal control. The Treasury is expected to take a keen interest in GBR’s performance, especially given the scale of public funding involved. Aligning funding cycles—for infrastructure and service operations – and enabling GBR to retain surpluses for reinvestment could significantly improve planning and delivery outcomes. This would, however, require mutual trust between the Treasury and GBR’s leadership.
A Smarter Regulatory Framework
With GBR acting as both infrastructure owner and service operator, the regulatory environment must evolve accordingly. The Office of Rail and Road (ORR) will retain a vital advisory and oversight role, though its enforcement powers are being redefined. It will focus more on ensuring value for money and less on imposing compliance through sanctions.
Simultaneously, the new Passengers’ Council will have real teeth – able to set standards, demand information, and escalate non-compliance. While this may enhance passenger voice, FGF cautions against regulatory overload. The goal should be smarter, not necessarily more, regulation—designed to support performance and innovation, not stifle it.
Navigating Devolution with Care
Rail devolution is set to accelerate under the English Devolution and Community Empowerment Act. Mayoral combined authorities will gain the right to request full control over local rail services. Meanwhile, Scotland and Wales already exercise varying degrees of autonomy.
FGF warns that without clear frameworks for collaboration, this landscape could become a source of fragmentation rather than partnership. The paper advocates for co-designed investment strategies, shared evidence bases, and early agreement on priorities. It also suggests that formal dispute mechanisms may be necessary to avoid standoffs between central and devolved governments.
Rail businesses operating across borders – or serving regions with active metro mayors – should anticipate more variation in governance and accountability. But they can also help shape this new terrain by engaging early with devolved authorities, highlighting mutual benefits and helping to define what success should look like regionally.
For businesses already working with Network Rail or TOCs, this is a chance to help shape GBR from the ground up. Contributing to consultations, engaging with early pilots like the South Western Integrated Railway, and investing in skills and systems that align with GBR’s mission will be vital.
Equally, industry needs to hold government to its promises – on long-term strategy, devolved collaboration, and purpose-led delivery. Only then can GBR become more than just a rebranding exercise and deliver the integrated, high-performing railway the UK deserves.
