UK Rail Freight Group Warns: Railways Bill Threatens Sector Growth

LONDON – The Rail Freight Group (RFG) has issued an urgent call for amendments to the UK’s Railways Bill 2025, warning that its proposed appeals process is critically flawed and threatens the future growth of the nation’s rail freight sector. The concerns are amplified by a challenging global economic backdrop, including recent reports of declining rail freight volumes in the United States, underscoring the need for robust and fair regulatory frameworks to ensure industry stability.

As the Railways Bill 2025 enters its crucial Commons Committee stage this week, the Rail Freight Group (RFG) has voiced significant alarm over provisions that would fundamentally weaken the rights of freight operators. The proposed legislation would see the Office of Rail and Road (ORR) stripped of its current role in awarding track capacity, instead becoming a limited appeals body. According to legal advice commissioned by the RFG, the new framework would force any appeal to meet the stringent principles of a Judicial Review. This sets an exceptionally high legal barrier, meaning the ORR could only overturn a decision by the new state-run Great British Railways (GBR) in the rare event of a clear error of law where only one alternative outcome was possible.

The RFG warns this structure effectively allows GBR to “mark its own homework,” creating an imbalance of power that could jeopardise the freight sector. “Even with the best intentions, future GBR decisions could harm rail freight customers or constrain growth,” stated Maggie Simpson OBE, RFG Director General. “A strong independent appeals function that hears cases on merit and enforces decisions is essential.” The fear is that without a powerful and accessible arbiter, GBR could de-prioritise freight traffic in favour of other services, directly undermining government commitments to modal shift and economic growth. The RFG has published a detailed position paper calling for urgent changes to establish a fairer system.

This UK-centric debate is reflective of broader global trends where regulatory oversight is becoming a critical battleground for the rail industry’s future. In the United States, for instance, the Association of American Railroads (AAR) recently reported declines in rail carload and intermodal volumes towards the end of 2025, highlighting market fragility where regulatory certainty is paramount for investment. Simultaneously, the proposed $85 billion mega-merger between Union Pacific and Norfolk Southern is drawing intense scrutiny from lawmakers and unions, who are demanding clarity and robust oversight from the Surface Transportation Board. In both the UK’s nationalisation reforms and the US consolidation trend, the central issue is ensuring that powerful, large-scale railway operators are subject to effective and independent scrutiny to protect competition and service levels.

Key Takeaways

• The RFG contends the Railways Bill 2025 severely restricts freight operators’ right to appeal decisions made by the new Great British Railways (GBR).
• The proposed appeals process is based on high-threshold Judicial Review principles, making it extremely difficult for the Office of Rail and Road (ORR) to overturn GBR rulings.
• This call for stronger oversight in the UK echoes international concerns, such as the regulatory scrutiny of the proposed Union Pacific-Norfolk Southern merger in the U.S.

Editor’s Analysis

The Rail Freight Group’s challenge to the Railways Bill is more than a domestic squabble; it’s a critical test case for the future of rail regulation in an era of increasing consolidation. As the UK government centralises control under Great British Railways, it risks creating a state-backed monopoly that could inadvertently stifle the very commercial agility that makes rail freight competitive. The RFG’s position highlights a fundamental tension: how to balance the theoretical efficiencies of a unified railway with the practical need for an independent, commercially-aware referee. If Parliament fails to embed a truly robust and accessible appeals process, it won’t just harm UK freight; it will send a cautionary signal to other nations that regulatory protections can become casualties of large-scale structural reform, threatening private investment and economic growth.

Frequently Asked Questions

What is the RFG’s primary objection to the Railways Bill 2025?

The primary objection is that the Bill creates an inadequate and weak appeals process for freight operators. It raises the bar for challenging decisions by the new Great British Railways (GBR) to an almost insurmountable level, effectively removing independent oversight.

How will the role of the Office of Rail and Road (ORR) change under the Bill?

The ORR will lose its power to award track access and will be repurposed as an appeals body. However, its ability to act will be severely constrained, as it can only overturn a GBR decision on narrow “error of law” grounds that are difficult to prove.

Why is a strong appeals process considered vital for the rail freight industry?

A strong, independent appeals process ensures fair access to the rail network for freight operators. It prevents the primary network controller (GBR) from unfairly prioritising its own or other passenger services over freight, thereby protecting supply chains, supporting economic growth, and encouraging investment in the freight sector.