The Office of Rail and Road (ORR) has launched the first stage of plans to update railway licences ahead of the creation of Great British Railways (GBR), outlining how regulation will adapt to the biggest structural reform of Britain’s railways in a generation.
The regulator has published a discussion document setting out proposed changes to the licences held by around 50 non-GBR operators, including freight companies, open access operators and devolved passenger services, to ensure they remain fit for purpose once GBR is established.
Preparing the regulatory framework
While Great British Railways will operate under a new licence issued by the Secretary of State, ORR will continue to license and regulate operators outside the new public body, covering around 90 licences across the sector.
The regulator says updating these licences will help create a consistent regulatory framework, ensuring clear accountability across both GBR and non-GBR operators.
Among the areas expected to require changes are consumer standards and industry-wide coordination, reflecting the transfer of responsibilities under rail reform.
In particular, licences are expected to be amended to recognise the expanded role of the new Passenger Watchdog, which will set industry-wide standards covering areas such as passenger information, accessibility and complaints handling. These standards will apply across both GBR and non-GBR operators.
The reforms will also reflect Great British Railways’ responsibility for industry-wide systems and functions currently overseen by the Rail Delivery Group.
Targeted changes ahead of reform
ORR said it intends to focus only on the licence amendments necessary to support the transition to GBR, rather than undertaking a wholesale review of existing licence conditions.
Railway licences will remain one of the regulator’s primary tools for monitoring compliance and enforcing standards across the industry once Great British Railways is operational.
Stephanie Tobyn, ORR’s Director of 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.”
Consultation to continue
The discussion document marks the beginning of ORR’s engagement with industry stakeholders.
A formal policy consultation is planned for the autumn and will run alongside the Department for Transport’s consultation on the new Great British Railways licence, allowing stakeholders to consider both sets of proposals together.
Subject to the passage of the Railways Bill, ORR intends to undertake a statutory consultation on specific licence modifications before the launch of Great British Railways, ensuring the regulatory framework is in place from day one.
While largely technical in nature, the changes will underpin how the reformed railway is governed, ensuring consistent consumer protections, regulatory oversight and accountability across Britain’s evolving rail network as Great British Railways begins to take shape.
