Fears new UK rail revamp plans could derail competitiveness, innovation and growth

The Railways Bill, originally announced in the King’s Speech in July 2024 but introduced into the UK parliament on 5 November, is designed to help the government meet its goal of bringing the country’s rail network infrastructure back into public ownership and streamlining ticketing and regulation of the public transport system.

The government completed a consultation process over the plans in April this year. 

The bill will begin the process of creating Great British Railways (GBR) - a new body responsible for rail operation and ticketing, aimed at increasing rail freight and better passenger service, which will be formed from merging various organisations and services with the existing Network Rail.

Transport and parliamentary expert Robbie Owen, of Pinsent Masons, said the new plans risked adding uncertainty over transparency and competition to the rail network.

“The government’s plan to create Great British Railways as a vertically integrated monopoly raises some real concerns about fairness, transparency and competition,” he said.

“Handing control of track, infrastructure and train operations to one body risks making GBR ‘judge and jury’ in decisions that affect the entire network, while weakening the independent oversight that currently ensures a level playing field.

“Transferring powers from the regulator to the secretary of state only adds uncertainty. Will these powers be exercised robustly against GBR? Without stronger duties on GBR itself, these proposals could choke private investment and undermine the role of competition in driving growth and innovation. Parliament will need to ensure that the bill safeguards core competition principles.”

Angelique Bret, an antitrust and competition expert at Pinsent Masons, said the bill marked a pivotal shift in the UK rail landscape, making GBR both operator and gatekeeper of the network.

“While this integrated model promises efficiency, it raises important competition law considerations for open access passenger operators, freight operators, and third-party ticket retailers like Trainline,” she said.

“The bill introduces competition safeguards - including statutory duties to promote freight, preserve open access, and allow third-party ticket sales – however stakeholders may wish to scrutinise whether these measures are robust enough to keep GBR’s new monopoly in check. Notably, the Office of Rail and Road (ORR) – which already has significant competition law and consumer protection powers – will take on a strengthened role as an independent appeals body, empowered to review and overturn GBR’s decisions on access and charging to ensure fair treatment and competition.

“With GBR also assuming control of ticket retailing, the ORR will enforce a code of practice to prevent anti-competitive behaviour and protect the role of independent rail ticket retailers. Industry should engage actively in the parliamentary process to ensure these protections are sufficient and future-proofed.”

The public ownership process for the rail network got underway last year, after the Passenger Railway Services (Public Ownership) Act was given royal assent in November 2024. The act ended the private sector presumption relating to passenger rail services, allowing the government to bring them back under public ownership when existing franchises reach the end of their contract.

The first three services to fall under this new regime changed hands earlier this year, with South Western, c2C and Greater Anglia moving to public ownership – and West Midlands Trains set to join them in February 2026.  

Chiltern and Great Western Railways’ services have been targeted as the next to switch to public ownership, with the Department for Transport looking to complete switching all services over by the end of 2027.

Alongside GBR’s creation, regulatory body the Office of Rail and Road will be streamlined to focus on safety and network efficiency, while the establishment of a passenger watchdog – based on the current Transport Focus organisation - will be carried out to provide the consumer protection functions currently performed by the ORR.

As part of the GBR rollout, the body will also take over responsibility from existing train operator companies for setting fairs and revenue collection, looking to simplify the current ticketing process with a centralised booking website – although the government said it will work alongside, and in competition with, third-party rail ticket retailer websites.

Alongside passenger services, the new company will have a statutory responsibility to promote freight services and ensure third party companies have fair access to the rail network for shipping and distribution to drive improved competition.

Owen added that there was concern apparent from initial consideration of the bill in relation to its extensive powers to re-write rail access agreements retrospectively by regulations, so that they would fit into the new access regime.

“Despite what the government has said by way of explanation and justification, the powers in the bill go considerably wider and so I fully expect parliament to seek to amend them so that they correspond to why government is saying the powers are necessary,” he added.

“These changes provide an opportunity to fundamentally redesign the railway around the interests of passengers and support a more customer-focussed culture,” said Transport Focus in a statement.

“It is also encouraging to see a strengthened role for the passenger watchdog. As attention inevitably shifts to the legislation, it is important not to lose sight of the ongoing challenges of running a railway that passengers rely on every day and recognise that change will depend on a lot more than what is written into law. 

“Ultimately passengers will judge the reforms by how successful they are in delivering what matters most to them: reduced cancellations, increased punctuality, reliable delivery of Passenger Assist and turn-up-and-go, simpler fares and better communication during disruption."