GBR Reform: UK Rail’s Future – Competition, Innovation, & Passenger Experience

GBR Reform: A Critical Examination of the Future of British Railways

A new report from the Centre for Policy Studies (CPS), authored by rail expert Tony Lodge, is sounding the alarm over the proposed structure of Great British Railways (GBR). Released on July 28th, 2025, the report, titled *‘Rail’s Last Chance: A four-point plan to save the railways’*, warns that the planned reforms risk repeating the failures of British Rail by centralizing control and stifling competition. The report argues that without significant changes, GBR, intended to streamline and modernize the UK rail network, could instead become a bureaucratic bottleneck. This article will examine the key recommendations of the report, focusing on their potential impact on accountability, innovation, passenger experience, and financial sustainability within the evolving railway landscape.

Accountability and Regulatory Independence

The CPS report’s primary concern centres on the potential erosion of regulatory oversight. The proposed structure of GBR involves transferring key regulatory functions from the independent Office for Road and Rail (ORR) to GBR itself. Lodge argues that this centralisation poses a significant threat to transparency, allowing GBR to effectively “mark its own homework.” The report emphasizes the vital role of the ORR in maintaining standards, controlling costs, and ensuring fair competition within the rail industry. The ORR’s continued independence is seen as crucial for holding GBR accountable and preventing a return to the inefficiencies and lack of customer focus that plagued British Rail. Maintaining a robust, independent regulator is seen as a cornerstone for ensuring the success of any railway reform.

Fueling Competition: The Open Access Model

The report strongly criticizes the perceived government’s apparent reluctance to embrace open access rail competition. Tony Lodge highlights open access as a key success story of recent decades, citing the East Coast Main Line (ECML) as a prime example. On the ECML, open access operators have delivered tangible benefits, including increased service choice, faster journey times, and reduced fares. Moreover, open access has incentivised the incumbent franchise operator, London North Eastern Railway (LNER), to improve its performance. Lodge advocates for setting open access quotas, suggesting a minimum of 10% on all long-distance intercity routes by 2030. He points to passenger increases of up to 40% and fare reductions of up to 60% in European countries that have adopted similar models.

Prioritizing the Passenger Experience

The CPS report emphasizes the need for GBR to be fundamentally customer-centric. Lodge recommends the development of a new national ticketing app designed to simplify the fare structure and enhance the overall passenger experience. The proposed app would incorporate features such as a “Rail Miles” loyalty scheme and bundled deals integrating rail travel with hospitality and retail. This customer-focused approach aims to make train travel easier, more affordable, and more appealing to potential passengers, aligning with the broader goal of increasing rail usage and achieving financial sustainability. This is seen as critical to encourage modal shift from private vehicle use.

Unlocking the Potential of Railway Assets

The report calls for GBR to explore the untapped revenue potential of the railway estate. Lodge advocates for increased commercial development, renewable energy generation, and innovative use of railway properties. Drawing on examples from international railway systems, particularly the model employed in Japan, the report highlights the potential for ancillary income streams. The UK railway network manages approximately 52,000 hectares of land, representing significant potential for solar energy generation, potentially generating 188 MWp across 34 sites and powering up to 180,000 homes. The report further suggests exploring lineside solar generation across the network to tap into this revenue stream and contribute to a greener transport sector.

Conclusion

The CPS report provides a timely and critical assessment of the proposed GBR reforms, underscoring the need for caution and strategic planning. The study underscores the importance of preserving regulatory independence and embracing open access competition to foster innovation and accountability. The report also rightly highlights the importance of focusing on improving the customer experience and realizing the potential of railway assets through commercial development and renewable energy initiatives. The industry implications are clear: the success or failure of GBR will depend on its ability to learn from the mistakes of the past and to prioritise customer focus and competition. Without meaningful reforms and a strong commitment to these key recommendations, GBR risks repeating the errors of British Rail. The future outlook for the UK rail network hangs in the balance, dependent on the decisions made by those in charge of designing and running the new system.