Railways: Finance
The question
To ask the Secretary of State for Transport, whether the provisions of the forthcoming Railways Bill will permit cross-subsidisation between publicly owned and delivered rail services.
Answered by Keir Mather
The Public Service Obligations in Transport Regulations 2023 allow public authorities to take into account the possibility of grouping cost-covering services with non-cost-covering services when determining what rail services should be provided by a public service operator (and what subsidy (if any) that should be provided to that operator). The forthcoming Railways Bill, due to be introduced into Parliament this session, aims to ensure continuity of this principle and will provide further clarity on the approach to subsidy control once Great British Railways is established and is responsible for all previously-franchised passenger services.
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