Railways Bill — Explanatory Notes: Bill 325 EN 2024-26 - pdf

Bil 325–EN 59/1

RAILWAYS BILL
EXPLANATORY NOTES
What these notes do
These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5
November 2025 (Bill 325).
● These Explanatory Notes have been prepared by the Department for Transport in order to
assist the reader of the Railways Bill and to help inform debate on it. They do not form part of
the Railways Bill and have not been endorsed by Parliament.
● These Explanatory Notes explain what each part of the Bill will mean in practice; provide
background information on the development of policy; and provide additional information on
how the Bill will affect existing legislation in this area.
● These Explanatory Notes might best be read alongside the Bill. They are not, and are not
intended to be, a comprehensive description of the Bill.

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

Table of Contents
Subject Page of these Notes

Overview of the Bill/Act 2
Policy background 2
Legal background 9
Territorial extent and application 11
Commentary on provisions of Bill/Act 12
Commencement 43
Financial implications of the Bill 44
Parliamentary approval for financial costs or for charges imposed 44
Compatibility with the European Convention on Human Rights 45
Related documents 45
Annex A - Territorial extent and application in the United Kingdom 47

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

Overview of the Bill
1 The Railways Bill delivers on the government’s manifesto commitment to establish
Great British Railways.
2 The Bill will fundamentally alter the rail landscape in Great Britain. It includes
provisions on a wide range of railway related topics.
3 The Bill contains 93 clauses and 3 Schedules, which are explained below.
Policy background
4 The 2024 Labour Party manifesto included a commitment to reform the railways
under a public ownership model. Last year, the Passenger Railway Services (Public
Ownership) Act 2024 brought train services back into public ownership. This was the
first step in the public ownership programme as an interim measure. Although the
Government is taking steps to improve the performance of all publicly owned train
services, the next step is to legislate through this Railways Bill.
5 The primary purpose of the Bill is to enable the creation of Great British Railways
(GBR), a new publicly owned body which will be the directing mind taking
responsibility for the railway infrastructure (e.g. tracks, bridges, tunnels and stations)
and most passenger train services. This means the Bill aims to bring “track and train”
together.
6 The current system suffers from unreliable services, low customer satisfaction and
poor value for money, caused by a model which is overly fragmented, lacks
accountability, and contains perverse incentives and irregularities, such as different
operators selling different tickets and charging different prices for the same journey.
7 The new rail system that is established by the Bill is designed to better meet the needs
and expectations of those who rely on it and support the Government’s growth
agenda. The Bill will:
a. Establish GBR
b. Set out the functions and duties of GBR (its purpose)
c. Provide funding for GBR
d. Create a statutory role for Mayors to enable local influence
e. Enable GBR to set fares and sell tickets
f. Establish a Passenger Watchdog
g. Establish an ‘access regime’ that allows GBR to make decisions on which
services can access the tracks

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

8 Please see below for a summary of these main policy provisions.
Establishing GBR
9. The Bill gives the Secretary of State the power to designate a body corporate as “Great
British Railways” through secondary legislation. Following Royal Assent, a company
will be designated as GBR. GBR will be established out of Network Rail Infrastructure
Limited (the main operating company of Network Rail, which currently manages the
core rail infrastructure and some stations). This will ensure GBR can be established as
quickly as practicable. Creating GBR will involve consolidating existing train
operating companies (e.g. Avanti, CrossCountry), DfT Operator (the publicly owned
train operating company), Network Rail, and parts of the Rail Delivery Group (an
industry collective which facilitates back of house functions for ticketing, for example)
into one organisation.
10. Following its establishment, GBR will become the main “train operator” in England,
running many of the passenger services such as those provided by LNER, South
Western, Greater Anglia, etc.
Functions, Duties and Strategies
11. GBR's functions are set out on the face of the Bill, which lists the activities that the
Government intends Great British Railways to do. These include managing, operating,
maintaining, renewing and improving, and providing access to, the network (i.e.
including the tracks and stations); operating its railway passenger services; setting
fares for them; selling tickets for railway passenger services; providing industry
services to facilitate the operation of railway services, and carrying out research and
publishing advice.
12. GBR’s general duties are also set out on the face of the Bill. These set out the
considerations GBR must take into account when it carries out its statutory functions.
Taken together, the functions (what it should do) and duties (what it should think
about) can be read as GBR’s core “purpose”.
13. The duties include acting in the interest of passengers, including disabled passengers,
promoting high standards of railway performance, promoting freight and the public
interest (such as social, economic and environmental factors), the efficient use of
public funds, and enabling other railway service providers to plan the future of their
business. Where appropriate, these duties will be shared across GBR, the Secretary of
State for Transport, Scottish Ministers, Welsh Ministers, and the Office of Rail and
Road (ORR), which is the independent regulator responsible for Britain’s railways.

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

This aims to create one clear set of expectations for the railways, shared by all key
players, to avoid duplication or misaligned incentives.
14. Alongside these duties, the Secretary of State will be required to prepare and publish a
Long-Term Rail Strategy (LTRS) which will provide the overarching vision for the
railway, considering longer term factors such as economic growth, the changing
climate, and an ageing population. Scottish Ministers already have a power to publish
a railway strategy under section 5 of the Railways Act 2005, and Welsh Ministers
already have a power to publish a transport strategy under section 2 of the Transport
(Wales) Act 2006. The Bill will place additional duties on the ORR and GBR to have
regard to these strategies when exercising their relevant functions as above. GBR will
also be required to have regard to the strategy, as well as to local transport plans of
mayoral combined authorities and mayoral combined county authorities, and the
Mayor of London’s transport strategy.
15. The Bill also requires the Secretary of State to set a rail freight growth target for Great
Britain. GBR must have regard to this target, as well as to any rail freight growth
target or strategy in Scotland that is set by Scottish Ministers.
Business Plan and Funding GBR
16. The Bill will make changes to the existing processes which determine and grant
funding to Network Rail. These provisions are designed to ensure that the UK and
Scottish Governments can fund GBR effectively and transparently.
17. At present (i.e. before this Bill), the “periodic review” is the 5-year, ORR-run process
through which Network Rail's funding is determined. Following detailed analytical
work, ORR sets access charges for train operators to use the tracks and infrastructure,
within the context of how much money Network Rail will receive from the
Government.
18. The Railways Bill retains the principles of this periodic review process but updates it
to work for GBR (reflecting, for example, the fact that GBR train services will not pay
access charges as the train services and the track will be run within the same
company).
19. The funding review process in the Bill is that: first, the ORR will set the timetable and
deadlines. The Secretary of State will then issue a statement explaining their
objectives for the railway, and an estimate of the funds they will provide GBR to run
it over the subsequent five-year funding period. The ORR will be consulted to
provide their assessment of whether the funds and the objectives are aligned and

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

practical. GBR will then produce a business plan in response. GBR must consult the
Secretary of State, the ORR, and new Passenger Watchdog when producing this
business plan. The ORR will advise the Secretary of State on whether the business
plan achieves their objectives and represents good value for money. The business
plan will then be formally approved by the Secretary of State and published, with
updates made as needed.
20. The business plan should: a) ensure that there is transparency about what activities
GBR proposes to carry out over the five-year funding period; b) allow the Secretary of
State and the ORR to monitor GBR’s activities against the business plan; and c)
inform the Secretary of State’s final funding decisions for GBR.
21. The Bill provides a power for the Secretary of State to give “infrastructure funding” to
GBR (i.e. funding for tracks, signals, stations, and maintenance). This power does not
extend to passenger services funding (i.e. funding to run train services) or funding
other GBR activities, which can still be funded using existing legislative powers.
However, the funding power in the Bill can also be extended by regulations to cover
passenger services and other types of funding in the future.
22. The Secretary of State must notify the ORR in advance if there are material reductions
to the funding agreed and must publish any material changes. The Secretary of State
will need to consider how a material impact is defined and may choose to publish
guidance/ information on how they will approach that determination. The
requirement to notify the ORR of material changes in advance will only apply to
funding provided for operations maintenance and renewal activity (i.e. infrastructure
funding for tracks, stations, and signals maintenance and renewal). The Bill also
provides a broadly equivalent business planning and funding processes for Scottish
Ministers to fund Scottish railway activities.
Scotland and Wales
23. The Bill will uphold the current devolution settlement s in Scotland and Wales, with
Scottish Ministers as the funder of passenger services and infrastructure in Scotland, and
Welsh Ministers responsible for passenger services in Wales and the Borders (as provided
by Transport for Wales) as well as the infrastructure of the Core Valley Lines.
24. Under the Bill, Scottish and Welsh Ministers will have various options for delivering their
passenger services. They may delegate their function to provide passenger services to
GBR (or a company wholly owned by GBR or a jointly owned company between GBR
and Scottish or Welsh Ministers). Alternatively, they will have the option to contract with

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

a public sector company to deliver the services (including the above options or a
company they solely own - e.g. Scotrail or Transport for Wales).
25. The Bill will require the preparation and publication of Memoranda of Understanding
(MoU) between the Secretary of State for Transport and the respective Cabinet Secretary
in each of the Scottish and Welsh Governments . The intention of the MoU is to outline
Scottish and Welsh Ministers’ roles in GBR’s governance and management and establish
a method for track and train integration to be furthered in both nations.
26. In Wales, the MoU will create shared objective s for Wales and Borders , i.e. the area
covered by Transport for Wales services and the corresponding infrastructure in both
Wales and the adjacent counties of England. These objectives will relate to the
management of cross-border services, and collaboration on the Core Valley Lines. They
will underpin a partnering arrangement between Transport for Wales (TfW) and GBR,
enabling further track-train integration in the Wales and Borders area, whilst addressing
the existing challenge of misaligned objectives for infrastructure and passenger service
delivery.
27. In Scotland, the MoU may set out how a GBR subsidiary, or a company jointly owned by
GBR and Scottish Ministers can deliver track and train integration in Scotland. The MoU
should set out a subsidiary or joint company’s accountability to Scottish Ministers as
funders of the railway within Scotland , alongside how it will continue to meet its
responsibilities to UK Ministers. The Bill will give the Scottish Ministers powers of
direction and guidance over GBR, reflecting their role as funder in Scotland, when GBR
is undertaking activities within Scotland on matters that fall within the executive
functions of Scottish Ministers.
Role of Local Leaders
28. The Government’s intention is that GBR will agree partnership arrangements with
mayoral strategic authorities (MSAs) to enable local influence over the railways and
support integration with other transport modes. As such, the Bill enables GBR to enter
arrangements with MSAs, including options for mayors to fund GBR.
29. The Bill will create statutory roles for MSAs in the railway reflecting a desire to bring
decision-making as close as possible to local communities while recognising that – as a
nationally integrated network – the railway’s governance must balance local,
commuter, regional, national, international and high-speed services, as well as the role
of freight.
30. The Bill will ensure that MSAs are consulted before GBR makes certain decisions
relating to a rail passenger service or additions to the network in the authority’s area

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

that would significantly affect the interests of the economy of the area and of people
living in, working in, or visiting the area. It will also ensure that GBR has regard to
devolved transport strategies.
31. Legislative mechanisms to devolve passenger services will also remain in place. This
will be supported by new non-legislative guidance which will set out a clear process
to enable MSAs to seek further devolution of rail responsibilities. Guidance will meet
government commitments regarding a “right to request” further devolution. Overall,
these measures will strengthen the role of mayors in the railway and emphasise the
importance of rail in local public transport networks.
Fares, Ticketing and Retail
32. When GBR is established, it will take over from train operating companies as the
main body responsible for delivering rail passenger services in the UK. As part of this
it will have responsibility for setting fares on the services it operates. Alongside GBR,
open access and devolved operators will remain responsible for setting fares for
services they operate.
33. The Bill enables the Secretary of State, Scottish Ministers, and Welsh Ministers to set
fares parameters for the services they designate (i.e. the services they fund and run,
through GBR or devolved operators). Additionally, the Bill will require GBR and
devolved operators to provide discount fares for young, elderly, and disabled people.
34. The Bill also confers powers on GBR to sell tickets. GBR’s ticketing website will
combine the existing 14 rail operator websites and apps into one – with the previous
websites ceasing to function. This will reduce fragmentation, deliver savings through
removing duplication, and provide a more coherent user-friendly way to buy tickets
for passengers. Open access train operators and devolved operators can continue to
sell tickets and rail products as they do today. Independent private sector retailers
will also continue to retail alongside GBR in a fair and open market.
35. GBR will be able to use all available channels to sell tickets to passengers (for
example, at station ticket offices, using ticket vending machines and on-board trains).
36. GBR will also have responsibility for certain industry functions currently overseen by
the Rail Delivery Group (RDG). This includes the “back of house” ticketing
management functions that RDG performs currently (such as the provision of
booking and reservation systems).
37. The Bill will enable the ORR to produce documents (e.g. codes of practice) that
governs GBR’s provision of these functions to wider industry, to ensure fairness. The
Secretary of State will then require GBR’s adherence to these documents through the

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

GBR licence. The Bill anticipates a code of practice for ticket retailing, which will
incorporate clear requirements for how GBR interacts with all market participants in
the retail market to ensure it treats all participants fairly to ensure an open and
competitive market. Enforcement action by the ORR will be possible in the event of
any failure to comply with a document issued under this provision. These documents
will be owned and managed by the ORR, who will also handle any complaints and
appeals of GBR decisions that are governed by them.
Passenger Watchdog
38. The Labour Party’s manifesto committed to establish a new passenger watchdog
which would consolidate consumer functions from three existing bodies: the ORR,
Transport Focus, and the Rail Ombudsman. The Passenger Watchdog is intended to
support the Secretary of State for Transport to ensure that an improved passenger
experience is at the heart of the reformed railway. By advocating for all passengers,
including those with disabilities, monitoring their experiences and ensuring there is
an independent and clear path to resolve disputes, the watchdog will help create a
better, more inclusive railway for all.
39. The Passenger Watchdog will set standards for the industry relevant to matters that
affect the passenger experience. These standards must be approved by the ORR and
the Secretary of State before they can become binding on operators.
40. The watchdog will be formed from the existing passenger watchdog, Transport Focus.
Transport Focus’s legal name “The Passengers’ Council” will be retained in
legislation, but it is expected that the operating name will change with the
establishment of the new watchdog (when it assumes its new functions from the other
bodies).
Access Regime
41. In relation to the railways, “access” refers to the question of who has the right to run
trains on the track (i.e. who has “access” to the track). There is a finite amount of space
on the railway, with many of the main lines and stations already operating at capacity.
At present, the decision-making process on access is fragmented across different
organisations responding to different duties, criteria, and objectives: for example, at
present, Network Rail owns the timetable, but the ORR takes access decisions, which
can lead to conflicting conclusions about whether and where a service can fit.
42. The Bill aims to establish a body which can make better use of existing capacity
(potentially facilitating more train services) and manage which services can run when

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

(enabling trains to run on time). GBR will become the decision maker on its own
network. This means it will decide which services should be granted access – choosing
fairly between its own services, devolved services, freight services, and open access
services. GBR will determine the duration and form of access rights, the charges other
operators should pay for access (within parameters set by the Bill), and the design of
performance incentive regimes which encourage other operators to run reliable
services. The Government’s intention is for GBR to take decisions on the genuine best
use of the network in line with the duties in the Bill. Whichever services offer the
genuine best value proposition for the passenger, the public, and the taxpayer,
according to the criteria in the duties, should gain access to the track.
43. The ORR will retain an independent appeals role: any aggrieved party who believes
that GBR has acted inconsistently or unfairly against its policies or legal duties can
appeal to the ORR.
Legal background
44. The principal legislation currently governing the management of railway
infrastructure and the delivery of rail services on that infrastructure is as follows:
a. The Railways Act 1993 (the 1993 Act) established a framework of licensing of
persons controlling railway assets (including track, stations, depots, and
trains), established the role of the regulator (in particular, in approving or
directing access), and set out the role of the Secretary of State in designating
parts of the network that will be subject to franchising and appoints
authorities responsible for the provision of railway services through
franchising. The Passenger Railway Services (Public Ownership) Act 2024
amended the franchising provisions in the 1993 Act to begin the move away
from franchising and into public ownership.
b. The Railways Act 2005 (the 2005 Act) amended the 1993 Act to transfer the
Strategic Rail Authority’s functions to the Secretary of State and the ORR,
created the periodic review process and established procedures that must be
followed when it is proposed to close lines or discontinue services.
c. The Public Service Obligations in Transport Regulations 2023 (replacing
Regulation 1370/2007) (the 2023 Regulations) established the framework
within which contracts may be awarded by public authorities setting out
public service obligations in connection with the provision of passenger
transport by rail.

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

d. The Railways (Access, Management and Licensing of Railway Undertakings)
Regulations 2016 (the 2016 Regulations) set out the duties of managers of
railway infrastructure, in particular in relation to the granting of access to
applicants wishing to run passenger or freight services on that infrastructure
and the charges to be paid for the use of the infrastructure. The 2016
Regulations set out the statutory framework for access to service facilities such
as stations and depots and the charges for this use.
e. The Railway (Licensing of Railway Undertakings) Regulations 2005 are EU
derived regulations which add to the licensing regime set out in the 1993 Act.
f. The Rail Passengers’ Rights and Obligations Regulations 2010 (the 2010
Regulations), which implemented Regulation (EC) No. 1371/2007 of the
European Parliament and of the Council of 23rd October 2007 on rail
passengers’ rights and obligations. The 2010 regulations designate the ORR as
the enforcement body and Passengers’ Council as the complaints body in
relation to Regulation (EC) No. 1371/2007.
g. Safety legislation, such as the Health and Safety at Work etc Act 1974 (1974
Act) and the Railways and Other Guided Transport Systems (Safety)
Regulations 2006 (ROGS), which set out the safety obligations relevant to
GBR. The 1974 Act provides an enabling power to make regulations in
relation to workplace safety. The ROGS set out the domestic railway safety
legislation.
45. The Bill sets up the new regime for the railway. The Bill will make significant changes
to the following parts of the current regime:
a. It establishes GBR, a publicly owned company whose functions will include
operating its network and running passenger services. GBR will have a licence
issued by the Secretary of State, which will be enforced by the ORR. Schedule
4A of the Railways Act 1993 will be repealed as the Bill contains new funding
arrangements for GBR.
b. It repeals section 4 of the Railways Act 1993 and creates a new set of duties
that the ORR, Secretary of State, Scottish Ministers, Welsh Ministers, and GBR
must apply when exercising various functions relating to railways and
railway services.
c. It repeals sections 23 to 31 of the Railways Act 1993 which governed the
provision of passenger services. The Bill contains new provisions relating to
the provision of passenger services which are similar to the Railways Act
1993. However, they reflect the removal of franchising and the move to public
ownership.

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

d. The Passengers’ Council is given additional rail functions. The rail functions
of the Passengers’ Council were previously contained in section 76 and 76A of
the Railways Act 1993, which are being repealed.
e. It exempts GBR’s network from sections 17 to 22C of the Railways Act 1993
and much of the 2016 Regulations as the Bill contains a new access regime
governing GBR’s network.
Alongside these changes, the Bill makes a number of more minor amendments to the
existing regime so that the new regime works effectively as a whole.
Territorial extent and application
46. The Bill extends to and applies in England and Wales and Scotland. The Bill does not
extend to or apply in Northern Ireland, except for the provision giving powers to
implement the Luxembourg Protocol. That provision will extend to and apply in the
whole of the United Kingdom.
47. Devolution of rail is partial and complex: in the current system, Scottish Ministers are
responsible for ScotRail and Caledonian Sleeper services that run on Network Rail’s
infrastructure, which they also fund and specify in Scotland. Welsh Ministers are
responsible for Transport for Wales services which run on both Core Valley Lines
infrastructure (which they own) and Network Rail infrastructure (funded by HMG).
Transport for Wales run services into England, on behalf of the Secretary of State,
under agency agreements. DfT-contracted operators also run services into Scotland
and Wales.
48. Under the Bill, the Government has respected and preserved the existing devolution
settlements for rail.
49. See the table in Annex A for a summary of the position regarding territorial extent and
application in the United Kingdom.

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

Commentary on provisions of Bill
Part 1: The New Regime for the Railways
Chapter 1: Great British Railways
Clause 1 and Clause 2: Designation and Crown Status
50. Clause 1 allows the Secretary of State to designate a company as Great British
Railways (GBR) by regulations.
51. Clause 2 confirms that GBR is not a servant or agent of the Crown, and that its
employees will not be civil servants. Further, clause 2 It also provides that the
Secretary of State, the Scottish Ministers and the Welsh Ministers will not be
considered shadow directors for the purposes of the Companies Acts.
Clause 3: Functions
52. Clause 3 sets out the functions of GBR. The functions are a list of the activities that the
Government expects GBR to undertake to fulfil its purpose.
53. The list of functions contained in the Bill is:
a. Subsection (1)(a) enables GBR to manage railway infrastructure (tracks,
signals, stations, etc.). GBR will be required to operate, maintain, renew,
improve, and add to the network as necessary, for example by undertaking
works to improve sections of track, responding to flooding, and other
necessary activities.
b. Subsections (1)(b) to (d) set out GBR’s role in delivering passenger services.
This includes setting fares for passengers and ensuring that tickets for its
services are available for sale. GBR will also be able to sell the tickets of other
operators, where commercial arrangements exist.
c. Subsection (1)(e) provides GBR with a statutory basis on which to deliver
certain functions currently delivered by the Rail Delivery Group. This
includes the “back of house” ticketing management functions that the RDG
performs currently (such as the provision of booking and reservation
systems), amongst other areas.
d. Subsections (1)(f) and (1)(g) provide for GBR to undertake research, provide
advice, support innovation, and set standards to support the wider execution
of its functions (for example, setting maintenance standards for tracksor other
operational matters).

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

54. Subsection (2) clarifies that subsection (1)(a) (GBR’s infrastructure management
function) also enables GBR to take decisions on who can access the infrastructure.
This clause and Chapter 1 of Part 3 set out GBR’s new access management regime.
55. Subsection (3) provides the Secretary of State with the power to add further statutory
functions by regulations. New functions can only be added if they are relevant to
railways and rail related activities or railway services.
56. Subsection (4) defines the term “statutory functions” for GBR as those which it has
above, plus any functions conferred on GBR by regulations or any other Act.
57. Subsection (5) allows GBR to authorise a subsidiary or a company jointly owned with
Scottish Ministers, Welsh Ministers, or a transport authority, to deliver its functions
for it or alongside it.
58. Subsection (6) confirms that GBR’s statutory functions will not prevent GBR from
being able to carry out other activities by virtue of being a company under applicable
law, such as the Companies Act 2006. Where these activities do not relate to their
statutory functions, such as functions relating to service facilities and property
management, GBR will not be required to apply the general duties set out in the Bill.
Clause 4 Exercise of functions of Scottish and Welsh Ministers
59. Clause 4 allows the Devolved Governments to make arrangements for GBR, a
subsidiary of GBR, or a company jointly owned by the Devolved Government and
GBR to carry out their statutory functions (i.e. the roles the Ministers each have
relating to the railway or railway services). Where Devolved Governments choose to
make such arrangements, GBR will be treated as if it was carrying out GBR functions
(for example, the statutory duties in the Bill will apply). It requires the Ministers to
publish the terms of any such arrangements. Subject to agreement, this provision
could allow Devolved Governments to further integrate their services with GBR in the
future.
Clause 5: Co-operation with relevant local government bodies
60. Clause 5 subsection (1) enables co-operation between GBR and Passenger Transport
Executives (PTEs), mayoral combined authorities (MCAs) and mayoral county
combined authorities (MCCAs). This allows the parties to enter into arrangements
regarding GBR’s statutory railway functions, supporting government ambitions for a
more locally focused railway through partnership working.
61. Subsection (2) confirms that these arrangements could allow PTEs, MCAs or MCCAs
to fund GBR to undertake railway activities, such as delivering specific services that
meet local needs.

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

62. Subsections (3) and (4) require information sharing between PTEs, MCAs or MCCAs,
and GBR that is reasonably required for the purpose of exercising their railway
functions in the local government body’s area. Information sharing is important to
enable local integration between transport modes, giving GBR and Mayors the ability
to plan services and respond to changes.
Clause 6: Co-operation with Transport for London
63. Clause 6 replicates clause 5 for Transport for London, which is governed by a different
legislative framework to PTEs, MCAs and MCCAs. The Bill encourages the same
cooperation by enabling GBR to enter into arrangements with Transport for London
(TfL) under which TFL can fund GBR, and to require certain information to be shared
between GBR and TfL.
Clauses 7 to 10: Directions and guidance by the Secretary of State and by the Scottish
Ministers
64. Clause 7 gives the Secretary of State the power to issue and publish directions to GBR
relating to its railway activities. The Secretary of State must obtain the Scottish or
Welsh Ministers’ consent before giving directions relating to GBR-run Scottish or
Welsh services, except where the Secretary of State uses the direction power in
relation to the access regime.
65. GBR will be required to comply with directions, which are mandatory and binding.
Directions are intended to be used as a responsive tool for necessary course
correction, rather than as a proactive tool to set requirements on GBR (i.e. they are a
last resort). A set of non-legislative procedures and controls will ensure that the
directions power is used proportionately and with justification.
66. Clause 8 gives Scottish Ministers the power to issue and publish directions to GBR
about how it is exercising its statutory functions in Scotland (in so far as they relate to
Scottish railway activities). GBR will be required to comply with issued directions,
which will be mandatory and binding. To prevent the directions from Scottish
Ministers conflicting with those issued by the Secretary of State, the Secretary of State
will have the power to revoke a direction of Scottish Ministers only where it is
inconsistent with the Secretary of State’s directions, where it will affect reserved
matters or railways activities outside Scotland, or where it is outside the legislative
competence or executive functions of Scottish Ministers. The Secretary of State must
consult Scottish Ministers before revoking a direction. Any revocation of a direction
must be published by the Secretary of State.

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

67. Clause 9 enables the Secretary of State to issue and publish guidance to GBR. GBR
must have regard to the guidance issued by the Secretary of State. Where the
guidance relates to GBR provided Scottish or Welsh services (those services delegated
or awarded to GBR), the Secretary of State must get the consent of Scottish or Welsh
Ministers. This allows the Secretary of State to clarify policy intentions to GBR. The
Government expects that in most cases requiring course correction, guidance would
be used before directions.
68. Clause 10 gives Scottish Ministers the equivalent power to issue and publish
guidance to GBR in relation to Scottish railway activities.
Clause 11: Licensing
69. Clause 11 provides that GBR’s licensing is set out in Schedule 1. Schedule 1 amends
Part 1 of the Railways Act 1993 and sets out the detailed process by which the GBR
licence will be issued and maintained (see Schedule 1 in these explanatory notes).
70. Both the Secretary of State and the ORR will retain the ability to grant licences to
railway bodies other than GBR (for example to open access operators, freight
operators, and other infrastructure managers such as the Core Valley Lines).
Clause 12: Funding
71. Clause 12 refers to Schedule 2, which creates the new Funding Period Review process
and provides the Secretary of State and Scottish Ministers with a new power to fund
GBR using this process.
72. The Funding Period Review process sets GBR’s business plan for a 5-year period. It
will include roles for the ORR, as the advisor to the Secretary of State and Scottish
Ministers, GBR, as the operator of the railways, and the Secretary of State and Scottish
Ministers as funders.
Clause 13: Charging and terms and conditions
73. Clause 13 allows GBR to charge people to whom it is providing a service related to its
functions (railway activities) as it sees fit. This will enable GBR to be able to charge for
services it provides that are currently chargeable under the existing rail regime, such
as the “back of house” services currently provided by the Rail Delivery Group, from
which all passenger operators, including open access operators, benefit.
Clause 14: Levy payable to ORR
74. Clause 14 allows the ORR to require GBR to pay a levy to the ORR for performing its
non-safety railway functions. This provides the ORR with a legally guaranteed
funding source independent of the Secretary of State or Government. This provision
aims to provide the ORR with a stable and predictable funding stream that will enable

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2025 (HC Bill 325).

it to plan and carry out its activities effectively and efficiently. This replaces the
current system under which the ORR requires Network Rail to pay a fee for it to
perform its non-safety functions via a process set out in the Network Rail licence.
75. The ORR is an independent regulator, so decisions on its funding should be kept
separate from organisations that have a vested interest in the ORR’s decisions (which
is why GBR, despite paying the levy, will not determine the amount). The amount is
agreed between the ORR and the Treasury and then provided by GBR through this
levy.
Chapter 2: Exercise of Railway Functions
Clause 15: Rail strategy
76. Clause 15 requires the Secretary of State to publish a document setting out the long-
term strategy for the railway, after consulting the Welsh Ministers and the Passenger
Watchdog. The Secretary of State must keep the strategy under review and publish
any revisions.
Clause 16: Duty of Great British Railways and ORR to have regard to strategies etc
77. Clause 16 requires GBR and the ORR to have regard to the Long-Term Rail Strategy
and statutory transport or rail strategies published by Welsh or Scottish Ministers
respectively when they are exercising their statutory functions (i.e. their railway
activities). It also requires GBR to have regard to the local transport plans for MCAs
and MCCAs and the Mayor of London’s transport strategy.
Clause 17: Rail freight target
78. Clause 17 requires the Secretary of State to set a target to increase freight on the
railways. The Government intends that this should be a measurable target which
establishes the goal (an amount or percentage) for how much growth is sought. GBR
must have regard to the target when carrying out its statutory functions. GBR must
also have regard to any freight growth target or strategy set by the Scottish Ministers.
Clause 18: General duties of Ministers, Great British Railways and ORR
79. Clause 18 sets out the general duties that apply to GBR, that is the things which GBR
must consider when carrying out its statutory functions. GBR will have the freedom to
consider which duties are relevant, and what weight to place on each duty but should
be able to demonstrate how it has had regard to its duties.
80. Subsection (1) sets out to whom these general duties apply. In addition to GBR, the
general duties will also apply to the ORR, Secretary of State, Scottish Ministers and

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
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Welsh Ministers when they carry out their railway functions. There is an exception for
the ORR’s safety-related functions and train driver licensing functions, because when
the ORR is exercising its safety functions our intention is that safety should be the
priority: ORR should not have to weigh this against other duties. The Bill does not
change the current safety regime. There is also an exception for the ORR’s functions
under the Competition Act 1998 because when the ORR acts as a concurrent
competition regulator with the Competition and Markets Authority, both bodies
should be applying the same duties.
81. The duties listed in subsection (2) require GBR and the sector bodies to consider the
following:
a. Subsection (2)(a) provides that they must promote the interests of users and
potential users of the railway (i.e. passengers and potential passengers),
including the needs of disabled people.
b. Subsection (2)(b) provides that they must promote the use of rail freight. This
duty, combined with the rail freight target in clause 17, recognises the critical
importance of freight to the economy and the environment.
c. Subsection (2)(c) provides that they must promote high standards in railway
performance. Subsection (3) then defines “performance” as meaning
reliability (including punctuality) and the avoidance or mitigation of
passenger overcrowding.
d. Subsection (2)(d) provides that they must ensure that railway service
providers (such as GBR, devolved operators, freight operators, and open
access operators) can plan, invest, and make decisions about their own
business.
e. Subsection (2)(e) provides that they must run the railway in the public
interest, which is defined in subsection 3 as including social, economic and
environmental interests.
f. Subsection (2)(f) requires them to make efficient use of public funds – i.e. to
carefully manage the amount of public subsidy required to run the railway.
82. Taken together, the functions in clause 3 (“what GBR must do”) and these duties
(“what GBR must think about”) demonstrate GBR’s purpose.
Clause 19: Safety duty of Ministers and ORR
83. Clause 19 replicates the existing safety duty in section 4(3)(a) of the Railways Act 1993
and requires the Secretary of State, ORR, Scottish Ministers, and Welsh Ministers to

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

consider the need to protect people from dangers that arise from the operation of the
railway. This is necessary as section 4 of the 1993 Act is repealed by this Bill in
Schedule 3.
Clause 20: Competition duty of ORR
84. Clause 20 requires the ORR to promote competition in the exercise of its statutory
functions, subject to certain exemptions. Exempt activities relate to safety, train driver
licensing, funding GBR, GBR’s access process and decisions in relation to railway
infrastructure, licence enforcement, Competition Act 1998 functions, and monitoring
GBR (where the Government considers that other considerations are equally or more
important than the need to promote competition).
Clauses 21 and 22: Duty of ORR to have regard to Secretary of State and Scottish
Ministers’ guidance
85. Clause 21 provides that the Secretary of State may give guidance to the ORR relating
to how it undertakes its railway functions (except for its safety enforcement functions
under the Health and Safety at Work etc Act 1974, its Competition Act 1998 functions
or its train driver licensing functions). The Secretary of State must consult Welsh
Ministers before issuing such guidance. Scottish Ministers are given an equivalent
guidance power in clause 22, which means that Scottish Ministers can give guidance
to the ORR about its functions relating to railways services wholly or partly in
Scotland, and otherwise relating to railways in Scotland. The ORR must have regard
to any guidance given under these clauses.
Clause 23: Memorandum of understanding: Secretary of State and Scottish Ministers
86. Clause 23 requires the Secretary of State and Scottish Ministers to prepare and
publish a memorandum of understanding setting out how they will work together in
their respective functions. The memorandum may set out: the role Scottish Ministers
are to have in the governance and management of GBR; agreed objectives relating to
the integration, management and operation of Scotland-only services and the
infrastructure; information sharing arrangements; how the directions powers are to be
used; how the memorandum is to be published; and arrangements for reviewing and
amending the memorandum. It is the intention that this Memorandum will include
steps to facilitate integration of GBR infrastructure and Scottish railway services.
Clause 24: Memorandum of understanding: Secretary of State and Welsh Ministers
87. Clause 24 requires the Secretary of State and Welsh Ministers to prepare and publish a
memorandum of understanding setting out how they will work together in their
respective functions. The memorandum may set out: the role Welsh Ministers are to

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
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have in the governance and management of GBR; the cross-border passenger services
that the Secretary of State and Welsh Ministers consider should be provided by Welsh
Ministers on behalf of the Secretary of State in England; the shared objectives in
relation to the integration of the management and operation of GBR and Welsh
Ministers’ railway functions, including steps they may take to facilitate such
integration; information sharing arrangements; how the memorandum is to be
published; and arrangements for reviewing and amending the memorandum.
Part 2: Passenger and Station Services
Chapter 1: Passenger Services
Clause 25: Designation of services by Secretary of State
88. Designation is the mechanism for assigning responsibility for running passenger
train services. The Secretary of State, Scottish and Welsh Ministers each have
designation powers to set out services which GBR or others (in the case of the Scottish
and Welsh Ministers, e.g. Scotrail) may run for them. Ministers can exempt services
from these designations, therefore allowing them to be devolved to other authorities,
such as Transport for London or others. Designation also underpins the delineation of
relevant powers and requirements in relation to those services, such as the discount
fare scheme requirements in clause 34.
89. Clause 25 requires the Secretary of State to designate the railway passenger services
for which GBR should be responsible. It excludes Scotland-only and Wales-only
services, as well as services exempted under clause 28 (such as those which are
already devolved to Transport for London), from being designated by the Secretary
of State. The clause also clarifies that the Secretary of State is not required to
designate services even if parts of them are already designated by the Scottish or
Welsh Ministers.
90. Designations may be made for individual services or by class or description. The new
Secretary of State designation is expected to be succinct and will not provide route-
nor timetable-level detail. This will ensure GBR has sufficient flexibility to act as a
directing mind and plan best use of the network in the public interest and in
accordance with its duties.
91. Before designating, varying, or revoking a cross-border service between England and
Scotland, the Secretary of State must consult the Scottish Ministers. All designations
and changes must be published.
Clause 26: Designation of services by Scottish Ministers
92. This clause requires the Scottish Ministers to designate Scotland-only railway

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passenger services and particular cross-border services (those they consider should be
provided with Scotland-only services or existing cross-border services designated to
them before this section came into force). Under clause 31, Scottish Ministers can
provide the designated services themselves or may make a direct award under
regulation 17 of the Public Service Obligations in Transport Regulations 2023 to secure
their provision from GBR, a company owned by Scottish Ministers or a company
jointly owned by GBR and Scottish Ministers. “Scotland-only services” refers to
passenger services which start and end in Scotland, and do not make a scheduled call
in England or Wales (for example, the ScotRail service between Inverness and
Wick/Thurso on the Far North Line). It provides flexibility for the designation to be
made either for specific services or for services of a particular class or description.
93. The clause also enables the Scottish Ministers to designate cross-border services where
they consider those services should be provided in conjunction with designated
Scotland-only services and where Scottish Ministers believe they should be
responsible for their provision. This ensures that service planning and delivery can be
integrated across borders where appropriate.

94. The clause excludes from designation any services that are exempt under regulations
made under clause 28 or 29 (such as those services which are already devolved, for
example to Transport for London, and do not fall under the responsibility of the
Secretary of State or Scottish Ministers).

95. The clause also requires consultation with the Secretary of State before any
designation, variation, or revocation of cross-border services, supporting coordination
between administrations. Finally, the clause requires the Scottish Ministers to publish
any designation or changes.
Clause 27: Designation of services by Welsh Ministers
96. This clause requires the Welsh Ministers to designate Wales-only railway passenger
services (those they consider should be provided with Wales-only services or existing
cross-border services designated to them before this section came into force). Welsh
Ministers can provide the designated services themselves or secure their provision
from GBR, a Welsh operator or a company jointly owned by GBR and Welsh
Ministers. “Wales-only services” refers to railway passenger services which start and
end in Wales, and do not make a scheduled call outside Wales (or example, the
Cambrian Line service between Pwllheli and Aberystwyth). It allows for designations
to be made either for specific services or for services of a particular class or
description.

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97. This clause also enables the Welsh Ministers to designate Welsh components of cross-
border services, which means the Welsh parts of services which make at least one
scheduled call in Wales but make scheduled calls outside Wales too (for example,
Cardiff Central – Manchester Piccadilly). This supports integrated service planning
across the Welsh network and its borders where appropriate. The Secretary of State
may, but is not required to, designate the English parts of those services.
98. Services exempt under regulations made under clause 28 or 29 (such as those which
are devolved to, for example, Transport for London, and are not the responsibility of
the Welsh Ministers) cannot be designated under this clause.
99. Finally, the clause requires the Welsh Ministers to publish any designation or
changes. Welsh Ministers cannot designate services in England, so are not required to
consult the Secretary of State in the way the Scottish Ministers are required to.
Clause 28: Exemption from designation: power of Secretary of State
100. This clause enables the Secretary of State to exempt certain railway passenger
services from designation by regulations. Exempting a passenger service from
designation means that the passenger train service will not be included in the
Secretary of State designation and GBR will not be providing the service through a
public service contract with the Secretary of State. This is the method by which the
operation of passenger train services has been devolved to e.g. Transport for London
and Merseytravel in the past (services were previously exempted under section 24 of
the Railways Act 1993). The Bill does not change this method. This method has also
previously been used to establish light rail networks, such as in Greater Manchester
and the Northeast, and to enable exemptions for services operating on infrastructure
not owned or managed by Network Rail, e.g. Heathrow.
101. The clause specifies that this power cannot be used to exempt Scotland-only or
Wales-only services, preserving the devolved responsibilities of the Scottish and
Welsh Ministers.
102. Before granting exemptions for services which operate across borders into Scotland
and Wales, the Secretary of State must consult either the Scottish Ministers or the
Welsh Ministers, ensuring coordination and respect for devolved interests.
103. All existing exemptions from designations (such as those in place for Transport for
London and Merseyrail, for example) will be retained.
Clause 29: Exemption from designation: powers of Scottish and Welsh Ministers
104. This clause enables the Scottish and Welsh Ministers to exempt certain railway
passenger services from designation (via regulations) in the same way as in clause 28.
Specifically, the Scottish Ministers may exempt Scotland-only services (defined in

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

section 83 of the Railways Act 1993), and the Welsh Ministers may exempt Wales-only
services (defined in section 57 of the Railways Act 2005). These powers allow each
administration to determine which services should fall outside the scope of
designation, offering flexibility in managing their respective networks.
Clause 30: Exemption from designation: supplementary
105. This clause sets out supplementary provisions relating to the granting of exemptions
from designation. It clarifies that exemptions made under clause 28 (by the Secretary
of State) or clause 29 (by the Scottish or Welsh Ministers) may apply to specific
persons or classes of persons, and to services generally, services of a particular class or
description, or even to part of a service.
106. The clause also allows for exemptions to be conditional or time limited. Regulations
may specify conditions that must be met for the exemption to apply and may also set
a fixed duration or provide a mechanism for determining the period of exemption.
These provisions ensure that exemptions can be tailored to specific operational, policy,
or regulatory needs, while maintaining flexibility and oversight.
Clause 31: Provision of railway passenger services
107. This clause sets out the responsibilities of GBR, the Scottish Ministers, and the Welsh
Ministers in relation to designated services. The Secretary of State may only secure
delivery of the passenger services designated under clause 25 through GBR (or a GBR
company), by directly awarding a public service contract (or public service contracts)
to GBR or a GBR company in accordance with regulation 17 of the Public Service
Obligations in Transport Regulations 2023.
108. The clause gives the Scottish and Welsh Ministers two options for delivering their
designated services under clause 26 and 27 respectively: either by providing the
services directly or by securing their provision through a direct award of a public
service contract to one or more public sector companies, including to GBR or a GBR
company, in accordance with regulation 17 of the Public Service Obligations in
Transport Regulations 2023. The powers to provide services directly could also be
used in conjunction with clause 4 to enable GBR to operate services on their behalf.
109. This approach aims to ensure flexibility in how devolved administrations can deliver
services, while maintaining compliance with relevant procurement rules.
110. Subsection (5) provides that where passenger services are secured through a contract
with a joint venture, subsidiary of GBR, or GBR, clauses 7 to 10, 13 and 16 to 18 (i.e.
directions and guidance, and GBR’s duties) apply to the provision of those services in

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the same way as if it was GBR exercising its statutory functions.
111. Subsection (6) also ensures that the relevant Ministers have the power to operate
network services, station services, and light maintenance services, as well as to store
and consign goods transported by rail, to enable their responsibility for passenger
services.
112. Subsection (7) provides that the obligation to provide or secure the provision of a
service under this section does not give rise to civil liability for breach of a statutory
duty.
Clause 32: Contracts awarded under section 31: supplementary
113. This clause explains the terms and conditions that may be included in public services
contracts between the Secretary of State, or the Scottish or Welsh Ministers, and GBR,
its subsidiaries, or joint ventures.
114. Specifically, contracts may require the train service operator to operate or secure the
operation of additional railway assets (networks, stations, or light maintenance
depots). The clause provides flexibility for the Secretary of State or the Scottish or
Welsh Ministers to include financial arrangements, operational requirements, and
property-related obligations within the contract. These provisions ensure that
contracts can be tailored to meet the operational and strategic needs of the train
service.
115. This clause also provides that obligations to publish pre-award information under
regulation 22 of the Public Service Obligations in Transport Regulations 2023 does not
apply to direct awards of public service contracts under clause 31.
Clause 33: Fares
116. Clause 33 sets out that the Secretary of State or Scottish Ministers’ power to give
directions to GBR under clause 7 or 8 may be exercised to give a direction relating to
fares. This direction could cover the general level and structure of fares that the
Secretary of State or Scottish Ministers expect to see on the passenger train services
that GBR is running on their behalf.
117. Likewise, the Secretary of State or Scottish Ministers can use the power in clause 9 or
10 to issue guidance about the general level and structure of fares.
118. Subsection (3) also allows for provision about the general level and structure of fares
to be set out in a public service contract under clause 31. This allows Ministers to
manage overall fare levels on their designated services.

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Clause 34Discount fare schemes
119. Clause 34 requires GBR to provide a discount fares scheme for passengers who are
young, elderly, or disabled to ensure that they can access cheaper rail fares and tickets.
The clause does not limit GBR to only these discount schemes: it can also create other
schemes which provide for cheaper fares and tickets at its discretion. The use of
discount fare schemes may be subject to conditions.
120. Clause 34 ensures that discount fares schemes for the young, elderly, or disabled are
made available on any services designated by Scottish and Welsh Ministers, as well as
on services provided by GBR.
Clause 35: Interpretation of Chapter 1 of Part 2
121. This clause provides additional clarity and defines some of the terms used in this
chapter.
Chapter 2: The Passengers’ Council
Clause 36: General duties of the Council
122. Clause 36 requires the Passengers’ Council to consider the interests and needs of
disabled persons when it exercises its rail functions. It also places a duty on the
Passengers’ Council to consider the costs and efficient use of public funds when it
exercises its functions. This updates the duty the Passengers’ Council currently has
regarding value for money (see section 76(7) of the Railways Act 1993) and is
consistent with the duty the Secretary of State, the ORR, Scottish Ministers, Welsh
Ministers and GBR will have [see clause 18(2)(f)] in this Bill.
Clause 37: Keeping matters under review and collecting information
123. Clause 37 requires the Passengers’ Council to:
a. keep under review any matters relating to passenger services or stations
which affect the public,
b. make representations and consult relevant people about the above matters
(e.g. making representations to Ministers, the ORR, or GBR),
c. Co-operate with other bodies who represent the interests of passengers i.e.
relating to other modes of public transport (for example, London
TravelWatch).
124. This clause also gives the Passengers’ Council the power to collect information so that
it can exercise its functions.
Clause 38: Exercise of functions under section 37
125. Clause 38 replicates section 76A of the Railways Act 1993. It allows the Passengers’

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Council to enter into agreements to perform the Passengers’ Council’s functions under
clause 37. For example, devolved bodies (e.g. Transport for London) could enter into
agreements with the Passengers’ Council so that the devolved body could carry out
the Passengers' Council functions in specific areas. The Secretary of State’s consent is
required before the entering into of any agreement under this clause.
Clause 39: Investigations
126. Clause 39 sets out the circumstances in which the Passengers’ Council must
investigate matters relating to railway passenger services or station services. For
example, the Passengers’ Council must investigate non-vexatious matters referred to it
by passengers, organisation representatives, the Secretary of State, Scottish Ministers,
Welsh Ministers, the ORR, or if it appears to the Passengers’ Council that it ought to
investigate the matter. If the matter falls wholly within the London railway area, the
Passengers’ Council must refer it to the London Transport Users’ Committee
(operating name London TravelWatch).
Clause 40: Power to obtain information
127. Clause 40 gives the Passengers’ Council the power to obtain information from a
provider or operator of railway passenger services or station services if it is necessary
for an investigation. The information must be provided to the Passengers’ Council
within a reasonable time unless the person does not have or cannot reasonably obtain
the information. If the Passengers’ Council does not receive a satisfactory response to
its information request, it may refer the matter to the ORR which will continue to act
as the enforcement body for the rail sector.
Clause 41: Protection of confidential information
128. Clause 41 protects confidential information if the Passengers’ Council obtains it
under clause 40.
Clause 42: Representations and referrals
129. Clause 42 gives the Passengers’ Council the power to make representations to such
persons as it thinks appropriate (such as train or station operators) to resolve a matter
under investigation. If the Passengers’ Council believes that an operator is
contravening or likely to contravene its licence obligations, then it must either engage
with the operator directly to request an improvement plan (under clause 47), and/or
refer the matter to the ORR and inform the Secretary of State that it has done so.
130. If the case is referred to the ORR, the ORR can choose whether to take enforcement
action or not.

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Clause 43Reports
131. Clause 43 allows the Passengers’ Council to prepare, send and publish a report of its
findings in an investigation. The Passengers’ Council must obtain the Secretary of
State’s consent before sending or publishing a report if the investigation was
undertaken following a referral from the Secretary of State. Similar provision is in
place if the investigation has been undertaken following a referral from Scottish and
Welsh Ministers. If the investigation was undertaken following a referral from the
ORR, the Passengers’ Council must inform the ORR before publishing a report of its
findings.
Clause 44: Complaints
132. Clause 44 designates the Passengers’ Council as the body to which complaints about
potential infringements to retained EU law on rail passenger rights should be
addressed. Retained EU law on rail passenger rights covers matters such as provision
of travel information to passengers, accessibility of services, and provision of
assistance. It replaces regulation 18(1) of the Rail Passengers’ Rights and Obligations
Regulations 2010.
Clause 45: Dispute resolution
133. Clause 45 places a duty on the Passengers’ Council to secure independent dispute
resolution arrangements for users and potential users of railway passenger services
and station services. It is envisaged that the Passengers' Council will take over
sponsorship of the Rail Ombudsman from the ORR to fulfil this duty.
Clause 46: Standards
134. Clause 46 gives the Passengers’ Council a power to set consumer standards for
operators of rail passenger services and station services (including GBR) which will be
conferred on them via licence conditions. The clause sets out matters which the
standards may cover, including passenger assistance, provision of travel information,
the process for compensation if services are disrupted, and complaints about
passenger services. The Passengers’ Council must seek the Secretary of State and the
ORR’s consent before setting new standards or varying existing ones. The Passengers’
Council must publish these standards and any variations or revocations of them and
must monitor how operators are complying with them.
Clause 47: Improvement plans
135. Clause 47 gives the Passengers’ Council the power to require improvement plans
from licensed rail operators where it judges them to be, or likely to be, non-compliant
with the standards it sets and therefore, the consumer licence conditions. The

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improvement plans would be requested from operators to allow them to explain their
planned improvements before issues are referred to the ORR for potential
enforcement action.
Clause 48: Advice about railway passenger services and station services
136. Clause 48 places a duty on the Passengers’ Council to provide advice to certain
bodies who refer matters to it, or if the Passengers’ Council considers it appropriate, to
provide advice without a referral. The Passengers’ Council is also required to engage
with Devolved Governments, including by responding to referrals from Scottish and
Welsh Ministers.
Clause 49: Consultation about railway passenger services and station services
137. Clause 49 places obligations on GBR to consult the Passengers’ Council when it is
developing or changing policies or procedures that will significantly impact
passengers. The clause sets out the policies and procedures it should consider
consulting the Passengers’ Council on, but gives GBR discretion to decide whether to
do so based on its assessment of the impact on passengers.
Clause 50: Publication of information and advice
138. Clause 50 gives the Passengers’ Council the power to publish information and advice
for users or potential users of railway passenger services. Before publishing any such
information or advice, the Passengers’ Council must consider whether it is necessary
to exclude any matter relating to an individual or body that would have a serious and
negative impact on their interests.
Clause 51: Power to make exclusions
139. Clause 51 enables the Secretary of State to exclude services from one or more of the
duties imposed by clauses 37 to 43, 45, and 48 through regulations, or modify those
duties in relation to particular services. Before making any changes, the Secretary of
State must consult the Passengers’ Council and the London Transport Users’
Committee. This power replicates the power the Secretary of State already has under
section 76(7B) and (7C) of the Railways Act 1993. There are currently two such
exemptions in place, one of which excludes services without through ticketing
facilities and who are exempt from holding a licence. Charter and heritage railway
operators fall into this exemption – the Government believe that it would be
burdensome and unnecessary for the Passengers’ Council to be required to investigate
heritage railway operators, which only operate for tourism purposes and not on the
mainline network.

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Clause 52Interpretation of Chapter 2 of Part 2
140. This clause provides additional clarity and defines some of the terms used in this
chapter.
Chapter 3: The London Transport Users’ Committee
Clauses 53 to 58: The London Transport Users Committee
141. Clauses 53 to 58 provide the London Transport Users’ Committee with the same
powers and general duties that the Passengers’ Council has in relation to the collection
and protection of information, investigations, the action the committee can take
following an investigation, and reporting for matters in the London railway boundary.
It designates the committee as the body to which complaints about potential
infringements of retained EU law on rail passenger rights in London should be
addressed and gives similar powers to publish information and advice as the
Passengers’ Council. This is intended to ensure consistency of passenger advocacy in
London and the rest of the United Kingdom.
Part 3: Miscellaneous Provisions
Chapter 1: Access to Infrastructure and Services
Clause 59: Access and use policy
142. Clause 59 (1) sets out that GBR must issue one or more documents explaining the
policies and procedures for access to and use of GBR infrastructure. This will be GBR’s
Access and Use Policy (AUP).
143. Subsection (2) sets out a detailed list of the procedures and criteria that GBR must
include in this document or documents, including the procedures for applying for
access, the criteria that GBR will apply to its decision-making, and a procedure for
resolving disputes.
144. Subsection (3) permits GBR to set out the terms (i.e. the rights and obligations) that a
train operator can expect to receive where it has been granted access to GBR’s
infrastructure.
145. Subsections (4) and (5) enable GBR to replace or amend the document(s) at any time,
provided the documents, including any revisions, are published.
146. Subsection (6) allows a person aggrieved by a provision in the document, or a
revision or replacement of it, produced under this section to appeal to the ORR.
147. The duty to consult and appeals provisions in clauses 66 to 68 also apply to these

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documents (i.e. to the Access and Use Policy).
Clause 60: Infrastructure capacity plan
148. Clause 60 (1) requires GBR to publish one or more documents setting out, in its view,
how best use can be made of its infrastructure over a specified period.
149. Subsection (3) allows GBR to replace or amend the document(s) at any time, and
subsection (5) requires any plan or revisions to be published.
150. Subsection (4) requires GBR to have regard to the need to accommodate its own and
other passenger services (including open access services), freight services and the
maintenance and improvement of its infrastructure, when preparing this document(s).
151. Subsection (6) allows a person aggrieved by a provision in the document(s), or any a
revision or replacement of it, produced under this section to appeal to the ORR.
152. The duty to consult and appeals provisions in clauses 66 to 68 also apply to the
documents produced under this clause.
Clause 61: The working timetable
153. Clause 61 (1) sets out that GBR must issue one or more timetables covering all train
movements on GBR infrastructure for the period that GBR intends the timetable to
cover (to be known as a “working timetable”).
154. Subsection (3) allows GBR to alter a working timetable, for example, to add new train
movements, change a planned train movement, to allow for maintenance works, to
deal with disruptions, or to change the duration of the timetable.
155. Subsection (4) allows GBR to alter a planned train movement of an operator other
than GBR only with that operator’s permission.
156. Subsection (5) provides a right of appeal to the ORR, for operators who applied for a
train movement to be included in the working timetable by GBR but were refused, or
where the inclusion was made subject to conditions.
157. The duty to consult and appeals provisions in clauses 66 to 68 also apply to the
working timetable but not to alterations of the working timetable.
Clause 62: Preparation of working timetable
158. Clause 62 sets out the steps that Great British Railways must follow before issuing a
working timetable.
159. Subsections (2) and (3) require GBR to publish an invitation for applications within a
specified period for the inclusion of train movements in the working timetable from

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

non-GBR operators.
160. Subsections (4) and (5) then require GBR to prepare a draft working timetable and to
send its draft to the applicants, stating the period for any representations to be made.
161. Subsection (6) requires GBR to consider any representations that have been made
during that period, and make any revisions it considers appropriate.
162. Subsection (7) allows a person who makes an application under subsection (2) to
appeal to the ORR against GBR’s decision on that application.
Clause 63: Capacity duty
163. Clause 63 provides for GBR to retain sufficient network capacity for the passenger
services it is required to operate, and for engineering access.
164. Subsection (2) requires that when granting access i.e. when issuing any capacity
commitment (access contracts) and when preparing, issuing and revising the timetable
under clause 62, GBR must ensure it retains sufficient capacity on its infrastructure to
operate its own passenger services, and to carry out works to maintain and improve
its infrastructure.
165. “GBR passenger services” are defined in clause 73 as those GBR provides under
arrangements with the Scottish Ministers or the Welsh Ministers under clause 4, or
under public service contracts awarded under clause 31. Sufficient capacity is required
to be retained both for services already in operation by GBR, and those it expects to
operate in future (e.g.: as set out in a business plan or PSOT specification not yet
awarded).
166. GBR will continue to follow the general and other wider legislative duties when
taking access decisions and it must take decisions fairly on the genuine best use of the
network. The infrastructure capacity plan at clause 60 will indicate the capacity
available to different market segments (i.e. how much capacity is best used for freight,
open access, GBR passenger services). This clause ensures that, where GBR has
decided what constitutes best use, and where the Secretary of State or Scottish or
Welsh Ministers have funded it to operate passenger services consistent with their
allocated section of the infrastructure capacity plan issued under section 60, GBR must
ensure sufficient network capacity is available for those services to operate, while also
ensuring sufficient capacity for engineering works. The duty does not enable GBR to
secure more capacity for its own services than it thinks would equate to best use.
Clause 64: Charging scheme
167. Clause 64 (1) requires GBR to develop a charging scheme setting out the charges to be

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paid for the access to and use of GBR’s infrastructure, and the extent to which charges
may be payable in relation to trains that do not operate (or do not operate in full)
despite their use being planned in.
168. Subsection (2) requires charges to be set at the cost directly incurred (e.g. the ‘wear
and tear’ caused by the service). GBR will determine how to establish the cost directly
incurred.
169. Subsection (3) provides for a higher charge to be set in particular circumstances
provided it is affordable to efficient operators.
170. Subsection (4) confirms that GBR can also set a lower charge where GBR considers
that appropriate for various purposes, including - but not limited to - encouraging the
use of spare capacity and to promote new services. The Subsidy Control Act 2022
would apply to any decision to lower charges under this provision.
171. Subsection (5) provides that GBR should not charge itself for its use, but must include
in its charging scheme sufficient information on the costs for its passenger services’
access to and use of its infrastructure, to explain how charges in the scheme have been
calculated.
172. Subsections (6) and (7) allow GBR to make changes to its charging framework at any
time and require GBR to publish the scheme and any alterations or replacements to it.
173. Subsection (8) allows a person aggrieved by a provision in the scheme, including any
revision or replacement, to appeal to the ORR.
Clause 65: Performance scheme
174. Clause 65 requires that GBR must provide (and publish) a “performance scheme”
which is designed to incentivise itself, its own subsidiaries, or other train operators to
minimise disruption or delay to other train services or the network. The scheme will
not be constrained to a one-size-fits-all approach and enables GBR to apply bespoke
arrangements where appropriate to do so.
175. Subsections (2) and (3) set out that the performance scheme may require train
operators to pay penalties if they cause disruption, allow operators to receive
compensation where disruption is caused by a different operator’s operations, and
receive bonuses to reward better than planned performance. It does not permit
payments by GBR relating to disruption that is outside its control.
176. Subsection (4) allows GBR to require that persons or operators provide it with
information specified in the performance scheme, in order for those persons or to be

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entitled to receive compensation or bonuses under the scheme.
177. Subsection (5) allows GBR to alter or replace the performance scheme at any time,
and subsection (6) requires GBR to publish the scheme and any revisions or
replacement.
178. Subsection (7) allows a person aggrieved by a provision in the scheme, including a
revision or replacement, under this section to appeal to the ORR.
Clause 66: Consultation
179. Clause 66(1) sets out whom GBR must consult before issuing, revising or replacing
the Access and Use Policy under clause 59. The ORR, the Scottish Ministers and Welsh
Ministers must be consulted, as well as such other persons GBR considers appropriate.
180. Subsection (2) requires GBR to consult with persons it considers appropriate before
issuing the infrastructure capacity planning documents under clause 60 (including
revisions and replacements), a working timetable under clause 61 or making, altering
or replacing a charging scheme under clause 64 or performance scheme under clause
65.
181. Subsection (3) provides that a requirement in this clause for consultation may be
satisfied by a consultation before or after the commencement of the clause.
Clause 67: Appeals against access, charging and performance decisions
182. Clause 67 provides that a person aggrieved may appeal to the ORR against a GBR
decision as to their train operations’ access to and use of the infrastructure, or a
decision under the charging scheme or performance scheme.
Clause 68: Appeal procedure
183. Clause 68 (1) sets out that when determining appeals under this Chapter, the ORR
must apply the principles that the High Court would apply on an application for a
judicial review, or the principles that the Court of Session would apply in exercise of
its supervisory jurisdiction for appeals in Scotland.
184. Subsections (2) and (3) provide for the ORR to allow an appeal or dismiss it, and if it
allows an appeal to use the following remedies:
a. For appeals made against the GBR policies, plans, and schemes themselves,
under clauses 59(6), 60(6), 64(8) or 65(7), the ORR can require GBR to
reconsider the decision and subsection (5) allows the ORR to give GBR
directions as to that reconsideration;
b. For appeals made against specific decisions under clauses 61(5) or 62(7)

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(decisions made in relation to the working timetable), or under clause 67
(decisions made under GBR’s policies, plans and schemes), the ORR can
quash the decision appealed against.

185. Subsection (4) allows that if the ORR quashes a decision under subsection (3)(b) it
may require GBR to reconsider the decision and subsection (5) allows the ORR to give
GBR directions as to that reconsideration. Alternatively, the ORR may substitute the
decision with its own, if quashing the decision is on the basis of an error of law and
without that error there is only one decision that GBR could have reached.
186. Subsections (6) and (7) give the Secretary of State power to make regulations relating
to appeals, to set out any steps that must be taken before an appeal can be brought, to
set fees and time limits, and to make provision governing the practice and procedure
to be followed in appeals under this Chapter. The Secretary of State must consult with
GBR, the Scottish Ministers and Welsh Ministers, the ORR, and anyone else they
consider appropriate before making these regulations.
187. Subsections (8), (9) and (11) provide that unless regulations under subsection (6) have
set this out, the ORR may publish a document setting out its processes and procedures
for appeals under this Chapter, and may review or replace the document.
188. Subsection (10) requires the ORR to consult with GBR, the Secretary of State, the
Scottish Ministers and Welsh Ministers and anyone else the ORR considers
appropriate, before issuing, revising or replacing the document.
Clause 69: Access agreements
189. Clause 69 amends the Railways Act 1993 to exempt GBR or a subsidiary of GBR from
Sections 17 to 22C of the Railways Act 1993 (the sections which outline the ORR’s
powers on access and its corresponding duties). This prevents the ORR from making
access decisions on infrastructure operated by GBR.
190. The rules on access and charges in relation to the use of the infrastructure operated
by GBR are set out in Chapter 1 of Part 3 of this Bill. All service facilities, including
those operated by GBR or its subsidiaries on a commercial basis and in competition
with other providers, will remain governed by the Railways (Access, Management
and Licensing of Railway Undertakings) Regulations 2016 (the 2016 Regulations).
Clause 70: Access rights
191. Clause 70 amends the 2016 Regulations to exempt GBR from the provisions of those
Regulations that would otherwise apply to its infrastructure. The access, use and

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charges to railway infrastructure operated by or on behalf of GBR are, instead to be
governed by Chapter 1 of Part 3 of this Bill. The 2016 Regulations will continue to
apply to other infrastructure managers.
Clause 71: Operation of existing agreements and rights
192. Clause 71 provides the Secretary of State with the power to make regulations about
pre-existing agreements to access GBR infrastructure that are in force at the date this
clause comes into force (granted under the 2016 Regulations), sets out the scope of the
power, and limits the use of the power to 15 years from Royal Assent.
Clause 72: Regulations about non-GBR infrastructure, facilities and services
193. Clause 72 sets out that the Secretary of State may make regulations to amend, or
make similar provision to, the 2016 Regulations. The intention is that this power will
be used to ensure that the legislation governing other infrastructure managers (for
example, HS1 or the Core Valley Lines) can be updated periodically to ensure
alignment with GBR. Regulations under this clause must be made using the
affirmative procedure.
194. Subsections (2) and (3) set out possible scope of such regulations, including to restate
or replace the 2016 Regulations.
195. Subsection (4) gives the Secretary of State the power to make consequential changes
to this or any other primary legislation.
196. Subsection (5) requires the Secretary of State to consult with persons they consider
appropriate before making regulations under this clause.
197. Subsection (6) sets the definition of “non-GBR infrastructure” to cover any network,
station or track that is not operated by or on behalf of GBR.
Clause 73: Interpretation of Chapter 1 Part 3
198. Subsection (1) sets out the definitions for “GBR infrastructure”, “GBR passenger
service” and “working timetable”, and in subsection (2) enables the Secretary of State
to amend the definition of “GBR infrastructure”. The definition of GBR infrastructure
determines the scope of the disapplication of the access and charging regime in the
2016 Regulations in relation to GBR, and so defines the scope of the access and
charging regime in this Chapter of the Bill.
Chapter 2: Other provisions
Clause 74: Monitoring Great British Railways

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199. Clause 74 amends the Railways Act 1993 and gives the ORR, the independent
rail regulator, a new function to monitor GBR’s delivery of its statutory functions and
carry out investigations where appropriate to fulfil this monitoring.
200. In particular, the ORR must consider (a) how and whether GBR is carrying
out the activities listed in its approved business plan, (b) how the cost of carrying out
those activities compares with the estimates in the business plan, and (c) whether
GBR is carrying out railway activities in a way that furthers railway safety.
201. The ORR may advise the Secretary of State in relation to this monitoring
function and may publish its advice.
Clause 75: Miscellaneous functions of the ORR
202. Clause 75 amends the Railways Act 1993 and prevents the ORR from issuing
directions to GBR relating to providing, improving or developing railway facilities,
and it prevents the ORR from imposing a fine on GBR for licence breaches.
Clauses 76 to 79: Publication of information by ORR, Secretary of State, Scottish
Ministers and Welsh Ministers
203. Clauses 76 to 79 change the current duties in sections 72 to 73B of the Railways Act
1993 on the ORR, Secretary of State, Scottish Ministers and Welsh Ministers to
maintain a register so that they are now under duties to publish certain information.
The ORR must publish documentation relating to licences, access agreements or access
contracts (other than those using GBR infrastructure, for which GBR will be
responsible), experimental passenger services, closures, and railway administration
orders, except for where that would affect individual public or commercial interests.
The Secretary of State, Scottish Ministers and Welsh Ministers must publish
determinations that a closure is a minor modification, and documentation relating to
the enforcement of closure restrictions.
204. Each clause contains restrictions about publishing information that would affect
individual, public or commercial interests. Each clause also allows for the publication
of documentation that was previously contained in the registers.
Clause 80: Duty to consult Scottish and Welsh Ministers
205. Subsections (1) and (2) require GBR to consult the Scottish Ministers before making a
decision that relates to a cross-border service designated under clause 25 or an
addition to part of the railway network operated by GBR in Scotland, where the
decision will significantly affect Scotland’s economy or of persons living in, working
in, or visiting Scotland.

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206. Under subsections (3) and (4) GBR must consult the Welsh Ministers under the same
conditions as Scottish Ministers, where GBR’s decision relates to a service designated
by the Secretary of State which is provide in Wales or an addition to part of the
railway network operated by GBR in Wales where the decision will significantly affect
Wales’s economy or of persons living in, working in, or visiting Wales.
207. Under subsection (5), where consultation is not reasonably practicable, the
requirement to consult Scottish or Welsh Ministers will not apply but GBR must notify
the Ministers of the relevant decision as soon as reasonably practicable.
Clause 81: Duty to consult mayoral combined authorities
208. Subsection (1) requires GBR to consult with mayoral combined authorities (MCAs)
and mayoral combined county authorities (MCCAs) where it considers that decisions
relating to passenger services or rail infrastructure will have a significant impact on
the economy, residents, workers, or visitors to an area. The expectation is that this
requirement would include impacts that could be deemed positive or negative to the
MCA or MCCA. Consultation from GBR will support MCAs and MCCAs in planning,
given their wider public transport responsibilities, and enable them to input their
perspective on the potential impacts of the proposed decision.
209. Under subsections (3) and (4), similar requirements are also placed on Scottish and
Welsh Ministers to consult MCAs and MCCAs where their services operate within an
MCA or MCCA.
210. Subsection (5) enables GBR, Scottish Ministers and Welsh Ministers to act without
undertaking consultation, where such consultation is not reasonably practicable, such
as in an emergency where timetable changes or closures of lines are required at short
notice. In this case, they must inform the MCA or MCCA as soon as reasonably
practicable.
Clause 82: Duty to consult Transport for London
211. Clause 82 replicates clause 81 for Transport for London.
Clauses 83 and 84: Advice from relevant local government bodies, and Transport for
London
212. Subsections (1) to (3) of clause 83 provide that a relevant local government body must
provide advice to the Secretary of State and GBR that they may reasonably require in
relation to their respective railway functions (except any function exercisable by the
Secretary of State for or in connection with railway safety purposes).
213. Subsection (4) defines a local government body as a mayoral combined authority, a

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mayoral combined county authority or a Passenger Transport Executive for an
integrated transport area.
214. Clause 84 performs the same function for Transport for London by inserting an
equivalent section 176A into the Greater London Authority Act 1999.
Clause 85: Licensing etc of train drivers
215. Clause 85 gives the Secretary of State the power to amend the Train Driving Licences
and Certificates Regulations 2010 and related assimilated law through regulations.
The Secretary of State has also been empowered to appoint a person or a body to
publish and maintain technical standards in a document separate from the regulations
themselves.
216. These laws set out the requirements that ensure train drivers are competent,
medically and psychologically fit, and trained on the infrastructure, rolling stock and
routes they are to be deployed on, and generally able to drive trains safely.
217. The power to amend this legislation is required to ensure that the train driver
licensing regime can be updated to reflect technological, clinical and medical
advancements. For example, the legislation currently names the Ishihara test as one to
be used by doctors when assessing colour blindness, despite there being more modern
methods available to industry which have arisen since the legislation was first made,
i.e. the Colour Assessment and Diagnosis test, or the Farnsworth Dichotomous test –
which are more effective. The ability to update this legislation on an enduring basis
will help to modernise the framework and support health and safety outcomes for
train drivers, as well as avoiding operational impacts such as train drivers being
unable to be deployed on account of not passing outdated medical tests. The ability to
designate a person or body (e.g. the ORR or GBR) to publish and maintain technical
standards will allow the train-driving regime to remain adaptable and effective.
Clause 86: Cape Town Convention and Luxembourg Protocol
218. Clause 86 gives the Secretary of State the power to implement the Cape Town
Convention (as far as it relates to railway rolling stock), and the Luxembourg Protocol
by regulations. The Luxembourg Protocol is designed to provide access to cheaper
rolling stock both in the UK and overseas, as finance can be secured and/or rolling
stock leased from non-UK sources (and UK rolling stock companies can lease abroad)
at lower risk. The regulations will be subject to the affirmative resolution procedure.
Part 4: General

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Clause 87Minor and consequential amendments
219. Clause 87 provides that Schedule 3 contains minor and consequential amendments.
Clause 88: Power of Secretary of State to make consequential provisions
220. This clause gives the Secretary of State the power to make amendments which are
consequential to the Act, to ensure that the statute book is tidy and appropriately
reflects the changes made by this Bill. This power cannot be used to make policy
changes.
Clause 89: Regulations
221. This clause provides detail on regulations that may be made under the powers
granted under this Bill.
222. The clause sets out that regulations made under clauses 3, 72, 73, 85, 86, 88 and
paragraph 6 of Schedule 2 are subject to the affirmative procedure. It also sets out that
the powers in clauses 72 and 88 are not subject to the hybrid procedure when they
otherwise would be.
Clause 90: General interpretation
223. This clause provides definitions of words and phrases used in this Bill.
Clause 91: Extent
224. This clause sets out that the Bill extends to England and Wales and Scotland and
clause 86 of the Bill also extends to Northern Ireland. As an exception to the general
extent, any provision in the Bill which amends, repeals, or revokes another provision
will have the same extent as the provision it amends, repeals, or revokes.
Clause 92: Commencement
225. This clause outlines the details of the commencement of the Bill whereby clauses 85,
86, 88 to 91, 92, and 93 are to come into force on the day on which the Bill is passed.
Any other provisions will come into force on the day or days the Secretary of State
may by regulations appoint.
Clause 93: Short title
226. This clause is self-explanatory.
Schedule 1: Licensing of Great British Railways
Part 1: Licensing of Great British Railways
Paragraphs 1 to 10: Licensing of Great British Railways
227. This schedule amends Part 1 of the Railways Act 1993 to set out how GBR will be

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These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
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licensed.
228. Paragraph 2 confirms GBR should never be exempt from holding a licence.
229. Paragraph 3 inserts a new section enabling the Secretary of State, following
consultation, to grant GBR a written licence to operate specified railway assets. The
licence must be in writing and will remain in force unless revoked or surrendered.
Surrender of the licence will require the Secretary of State’s consent.
230. Paragraph 3 also sets out the process for granting licences to persons other than GBR.
The Secretary of State and the ORR will continue to be able to grant licences to persons
other than GBR to operate railway assets. The ORR may only grant such licences with
the Secretary of State’s consent or under a general authority issued by the Secretary of
State. Licences must be in writing and will remain in force unless revoked or
surrendered. Surrender of the licence will require the ORR’s consent.
231. New section 8A sets out the requirements for granting of licences by the Secretary of
State or the ORR. It provides that a notice must be published outlining the intention to
grant a licence, the reasons for doing so and allow at least 28 days (from the date of
publication of the notice) for interested parties to make representations or objections.
There is a duty to consider representations or objections made within the period
specified in the notice.
232. New section 8B gives the Secretary of State the power to set rules for how licence
applications must be made. This includes the format of the application, the fee payable
(different fees may apply depending on the type of licence), and requirements for
publishing the application. Before making any regulations, the Secretary of State must
consult the ORR. Any fees collected by either the Secretary of State or the ORR in
connection with licence applications must be paid into the Consolidated Fund.
233. Paragraph 4 clarifies that licences granted to GBR may specify when the authorisation
it provides takes effect. It allows the licence to include a start date or mechanism for
determining that date.
234. Paragraph 5 provides that a licence granted to GBR may include a condition
requiring GBR to comply with provisions set out in a separate document that is
prepared by the ORR and approved by the Secretary of State. An approved document
(such as a code of practice) may relate to the sale of tickets by GBR (or third parties),
or to services that GBR provides to the rail industry that facilitate railway operations.
Paragraph 5 makes clear that an approved document may be used to regulate GBR’s
behaviour in relation to the sale of tickets by parties other than GBR. Where conditions

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refer to provisions set out in an approved document, the ORR must publish this
document and keep it under review, with any updates agreed by the Secretary of State
and published.
235. Paragraph 6 provides that before making modifications to a GBR licence, the
Secretary of State must publish a notice explaining the proposed modifications, the
reasons for them, and allow at least 28 days (from the date of publication of the notice)
for interested parties to make representations or objections. There is a duty on the
Secretary of State to consider representations or objections made within the period
specified in the notice.
236. Paragraph 7 clarifies that the ORR must consult the Passengers’ Council before
making any amendments to passenger or station licences that relate to the Passengers’
Council’s functions. The ORR must also send a copy of the modifications as soon as
practicable to the Passengers’ Council.
237. Paragraph 9 clarifies that any licence under section 8 of the Railways Act 1993 which
is in force immediately before the amendments made by this Schedule come into force
will remain in force as per the conditions and period set out in of the licence, unless
the licence is revoked or surrendered before then.
Schedule 2: Funding Great British Railways
Part 1: Funding by the Secretary of State
Paragraph 1: ORR to set timetable governing funding process
238. This paragraph enables the ORR to set and manage the timetable for the five-year
GBR funding process following consultation with Secretary of State, Scottish
Ministers, Welsh Ministers, and GBR. The ORR will be required to ensure that the
process concludes ahead of the next five-year funding period. The ORR will also set
the timetable for the Scottish Ministers' GBR funding process to ensure alignment.
Paragraph 2: Secretary of State’s statement of objectives
239. Paragraph 2 requires the Secretary of State to provide Welsh Ministers, GBR and the
ORR with a statement of objectives for the railways and railway services for the next
five-year funding period. The Secretary of State will be required to consult Scottish
Ministers, Welsh Minsters, the ORR, GBR, the Passengers’ Council and each mayoral
strategic authority when preparing this statement. The Secretary of State must publish
the statement as soon as reasonably practicable after providing it.
240. This statement of objectives is specifically designed to provide a basis for GBR’s

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funded activities over a five-year period. When preparing this statement, the Secretary
of State will need to comply with the Secretary of States’s wider duties, such as the
duty to promote the interests of freight, and passengers, including disabled people.
Paragraph 3: Statement of funds available
241. Paragraph 3 requires the Secretary of State to provide GBR and the ORR with an
estimate of how much funding they will be able to provide GBR for the funding
period. When preparing this statement, the Secretary of State will be required to
consider the likely costs associated with achieving the Statement of Objectives. To help
the Secretary of State develop this statement, they will consult with the ORR. The
purpose of this consultation is to allow the ORR to assess whether the Statements of
Objectives and Funds Available are coherent. The Secretary of State must publish the
statement as soon as reasonably practicable after providing it.
Paragraph 4: Business plan and approval by the Secretary of State
242. Paragraph 4 states that GBR must produce a business plan which sets out the
activities it proposes to carry out during the funding period, the estimated costs of
carrying on those activities and how GBR proposes to meet those costs. GBR will be
required to consult with the Secretary of State, the ORR and the Passengers’ Council
when preparing the plan. It will also be required to explain how the activities in the
business plan will contribute to meeting the Secretary of State’s Statement of
Objectives (under paragraph 2) and consider the Statement of Funds Available (under
paragraph 3).
243. GBR must obtain the Secretary of State’s approval of the business plan. The Secretary
of State cannot approve the business plan until they have received advice from the
ORR on how the business plan contributes to meeting the Secretary of State’s
statement of objectives and whether the estimated costs represent good value for
money. The ORR must prepare a summary of this advice and publish this summary as
soon as reasonably practicable after the approved business plan is published by GBR.
Once the Secretary of State has approved the business plan, GBR will be required to
provide it to the ORR and then publish as much of that plan as is appropriate as soon
as reasonably practicable.
Paragraph 5: Keeping the business plan up to date
244. Paragraph 5 states that GBR must keep the business plan up to date. It must consult
the Passengers’ Council and the ORR about any changes it proposes to make to the
plan and the Secretary of State must approve any updates. It is expected that GBR will
adhere to a non-legislative change management policy to help structure fulfilment of

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these obligations. As much of the updated plan as GBR considers appropriate must be
published as soon as reasonably practicable.
Paragraph 6: Secretary of State’s power to provide financial assistance
245. Paragraph 6 gives the Secretary of the State the power to provide GBR with financial
assistance to carry out the business plan (i.e. this paragraph gives the Secretary of
State a power to fund GBR). The funding can only be provided for activities relating to
managing, operating, maintaining, renewing and improving railway infrastructure
(i.e. not for running passenger train services). The Bill then provides Secretary of State
with powers to increase the scope of this funding power to other activities by
regulations.
246. The paragraph contains wording that ensures the Bill does not limit the Secretary of
State’s ability to use any other powers (such as existing powers in the Railways Act
2005) to give financial assistance to GBR.
Paragraph 7: Notification of financial assistance to be provided
247. Paragraph 7 requires the Secretary of State to notify the ORR and GBR of how much
funding under paragraph 6 that the Secretary of State intends to grant to deliver the
business plan, or a specific set of activities set out in the business plan, by the date
specified in the ORR’s timetable. The Secretary of State must publish this as soon as
reasonably practicable. If the Secretary of State proposes to vary the financial
assistance to be provided to GBR under paragraph 6, GBR must be notified.
248. If the proposed variation: (a) relates to financial assistance for GBR’s activities
relating to managing, operating, maintaining, renewing and improving railway
infrastructure; (b) is a proposal to postpone, withdraw or reduce funding; and (c) the
Secretary of State considers that it would have a material impact on GBR’s ability to
carry out the activities the funding was to be provided for, then the Secretary of State
must notify the ORR.
249. The Secretary of State must also publish details of any actual changes made to the
funding provided through the powers in paragraph 6 if the Secretary of State
considers that the variation is likely to have a material impact on the ability of GBR to
carry on the activities that the funding was provided for. The Secretary of State must
also notify GBR of the variation.
Part 2: Funding by the Scottish Ministers
Paragraphs 8 to 14: Provision of financial assistance by the Scottish Ministers
250. Paragraphs 8 to 14 contain the equivalent regime for Scotland. The business planning

43

These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

processes are identical except that Scottish Ministers may use the Schedule 2 funding
power to fund any Scottish railway activities set out in an approved Scottish business
plan using the new funding power.
251. In practice, GBR will need to ensure coherence across the business plans approved
by Scottish Ministers and the Secretary of State.
252. Scottish railway activities are railway activities that relate to: railway services
designated by Scottish Ministers; railway services that begin and end in Scotland; and
railway facilities and railway assets situated in Scotland.
253. Finally, when consulting on their statement of objectives, Scottish Ministers are only
required to consult GBR, the ORR, the Secretary of State, and the Passengers’ Council
and Scottish Ministers can only include objectives in their statement of objectives that
relate to Scottish railway activities.
Part 3: Subsidy Control
Paragraph 15: Subsidy control
254. This paragraph codifies existing EU case law and subsidy control principles which
state that financial assistance given for the primary purpose of maintaining and
operating the main UK rail network (i.e. funding to enable GBR to exercise its clause
3(1)(a) infrastructure function) is not a subsidy for the purposes of the Subsidy Control
Act 2022.
Part 4: Interpretation
Paragraph 16: Interpretation
255. This paragraph defines some of the terms used in this chapter.
Schedule 3: Minor and consequential amendments
Paragraphs 1-53: Minor and consequential amendments
256. This schedule contains minor and consequential amendments arising out of the Bill
and the new industry arrangements.
Commencement
257. Clause 84 provides for the commencement of the provisions in this Bill. For the most
part, the provisions of the Bill will come into force as defined by the Secretary of State in
regulations. Different days may be appointed for different purposes or areas.

44

These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

258. The exceptions are the regulation making powers and the general provisions in Part 4
of the Bill, which will come into force on the day the Bill is passed
Financial implications of the Bill
259. The measures in this Bill are, in the most part, enabling and as a result most of the
proposals will not place direct costs on the Department for Transport purely by their
enactment.
260. There will be set-up costs to the Government (the set-up costs for GBR and the new
passenger watchdog are expected to be between £200m and £400m), as well as
administrative and familiarisation costs to businesses resulting from the legislation. The
Government anticipates these will be offset by efficiency gains and improvements to the
passenger offer.
261. Further details of the costs and benefits of the provisions are set out in the impact
assessment published alongside the Bill.
Parliamentary approval for financial costs or for
charges imposed
262. A money resolution is required for the Bill. Such a resolution is required where the
Bill authorises new charges on the public revenue - broadly speaking, new expenditure.
The money resolution for this Bill will cover the following:
a. the provision of financial assistance by the Secretary of State to Great British
Railways to support the provision of infrastructure and passenger services by
Great British Railways;
b. other expenditure incurred by the Secretary of State as a result of the Bill,
including expenditure incurred during transition to the new regime for the
railways;
c. expenditure by the Office of Rail and Road exercising the functions conferred
on it by the Bill, including monitoring Great British Railways’ performance
and dealing with appeals under Chapter 1 of Part 3;
d. increases in running costs for the Passengers’ Council and the London
Transport Users’ Committee as a result of the functions conferred on them by
Chapters 2 and 3 of Part 2.

45

These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

263. A ways and means resolution is not required for the Bill.
Compatibility with the European Convention on
Human Rights
264. Section 19 of the Human Rights Act 1998 requires the Minister in charge of a Bill in
either House of Parliament to make a statement about the compatibility of the
provisions of the Bill with the Convention rights (as defined in section 1 of that Act).
265. In the opinion of the Secretary of State for Transport, the provisions of the Bill are
compatible with the Convention rights and she has made a statement to this effect.
Environment Act: Section 20
266. The Secretary of State for Transport is of the view that the Bill as introduced into the
House of Commons does contain provision which, if enacted, would be
environmental law for the purposes of section 20 of the Environment Act 2021, but
that the Bill would not have the effect of reducing the level of environmental
protection provided for by any existing environmental law. Accordingly, the Secretary
of State has signed a statement under that section 20(2)(a) and (3) of the Environment
Act 2021 to that effect.
Statement on Bills affecting trade between Northern
Ireland and other parts of the United Kingdom
267. The Secretary of State for Transport is of the view that the Bill as introduced into the
House of Commons does not contain provision which, if enacted, would affect trade
between Northern Ireland and the rest of the United Kingdom. Accordingly, no
statement under section 13C of the European Union (Withdrawal) Act 2018 has been
made.

Related documents
268. The following documents are relevant to the Bill and can be read at the stated
locations:
● Railways Bill

46

These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

● Railways Bill Consultation Response -
https://www.gov.uk/government/consultations/a-railway-fit-for-britains-
future

47

These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

Annex A - Territorial extent and application in the
United Kingdom
Provision England Wales Scotland Northern Ireland
Extends to E
& W and
applies to
England?
Extends
to E & W
and
applies to
Wales?
Legislative
Consent
Motion
process
engaged?
Extends
and applies
to
Scotland?
Legislative
Consent
Motion
process
engaged?
Extends and
applies to
Northern Ireland?
Legislative
Consent
Motion
process
engaged?

Clause 1
Clause 2
Clause 3
Clause 4
Clause 5
Clause 6
Clause 7
Clause 8
Clause 9
Clause 10
Clause 11
Clause 12
Clause 13
Clause 14
Clause 15
Clause 16
Clause 17
Clause 18
Clause 19
Clause 20
Clause 21
Clause 22
Clause 23
Clause 24
Clause 25
Clause 26
Clause 27
Clause 28
Clause 29
Clause 30

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

No
No
No
Yes
No
No
Yes
No
Yes
No
No
No
No
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No
No
Yes
Yes
No
No
No
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Yes
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No
Yes
Yes

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

No
No
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Yes
No
No
Yes
Yes
Yes
Yes
No
Yes
No
No
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No
Yes
Yes
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Yes
Yes

No
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No
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No
No
No
No
No
No
No
No
No
No
No
No
No
No

48

These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

Provision England Wales Scotland Northern Ireland
Extends to E
& W and
applies to
England?
Extends
to E & W
and
applies to
Wales?
Legislative
Consent
Motion
process
engaged?
Extends
and applies
to
Scotland?
Legislative
Consent
Motion
process
engaged?
Extends and
applies to
Northern Ireland?
Legislative
Consent
Motion
process
engaged?
Clause 31
Clause 32
Clause 33
Clause 34
Clause 35
Clause 36
Clause 37
Clause 38
Clause 39
Clause 40
Clause 41
Clause 42
Clause 43
Clause 44
Clause 45
Clause 46
Clause 47
Clause 48
Clause 49
Clause 50
Clause 51
Clause 52
Clause 53
Clause 54
Clause 55
Clause 56
Clause 57
Clause 58
Clause 59
Clause 60
Clause 61
Clause 62
Clause 63
Clause 64
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
No
No
No
No
No
No
No
No
No
No
No
No
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Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
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No
No
No
No
No
No
No
No
No

49

These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

Provision England Wales Scotland Northern Ireland
Extends to E
& W and
applies to
England?
Extends
to E & W
and
applies to
Wales?
Legislative
Consent
Motion
process
engaged?
Extends
and applies
to
Scotland?
Legislative
Consent
Motion
process
engaged?
Extends and
applies to
Northern Ireland?
Legislative
Consent
Motion
process
engaged?
Clause 65
Clause 66
Clause 67
Clause 68
Clause 69
Clause 70
Clause 71
Clause 72
Clause 73
Clause 74
Clause 75
Clause 76
Clause 77
Clause 78
Clause 79
Clause 80
Clause 81
Clause 82
Clause 83
Clause 84
Clause 85
Clause 86
Clause 87
Clause 88
Clause 89
Clause 90
Clause 91
Clause 92
Clause 93
Schedule 1
Schedule 2
Schedule 3
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
No
No
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No
Yes
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No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
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No
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No
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Yes
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No
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No
No
No
No
No
No
No
No
No
No

50

These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5 November
2025 (HC Bill 325).

Bil 325–EN 59/1

RAILWAYS BILL
EXPLANATORY NOTES
These Explanatory Notes relate to the Railways Bill as introduced in the House of Commons on 5
November 2025 (HC Bill 325).

__________________________________________________________
Ordered by the House of Commons to be printed, 5 November 2025.
__________________________________________________________

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