OVERVIEW

The government is renewing, rebuilding and reforming our railways. £18bn will have been invested in railways during this Spending Review period, and the latest £9.4bn investment programme aims to uplift rail capacity, improve rail connections and deliver value for money to the passenger and taxpayer alike.

'In what is the biggest modernisation of our railways since the Victorian era, this investment will mean faster journeys, more seats, better access to stations, greater freight links and a truly world-class rail network.' Prime Minister David Cameron 16th July 2012

The investment aims to make Britain's rail network fit for purpose for the 21st Century and deliver a step change in capacity on routes to meet rising demand in both freight and passenger numbers. Upgrades in rolling stock, infrastructure and stations should result in wider economic benefits as a modern, better connected railway can help to support growth, create jobs and spread prosperity. There have been ongoing debates around a north-south divide in transport spending so it is important that greater decentralisation is established to make sure no region is being left behind. For passengers increased capacity and rail improvements should help to tackle overcrowding and slash journey times. With a modern railway in place firms across the regions will be able to exploit new markets and attract new investment and communities will have better access to jobs and essential services.

However, despite the positive investment programmes and growth in passenger numbers there remains key issues and challenges for the industry and government to address. The franchising system is under intense scrutiny after the fiasco surrounding the latest contract for the West Coast Main Line. The Public Accounts Committee accused the Department for Transport of making 'fundamental errors' in the handling of the franchise deal and failing to learn from 'previous disasters' that is estimated to cost the taxpayer £50m at the very least. Is the franchise system flawed and has competition helped to drive down costs in UK rail, raise standards and deliver value for money to passengers? The Brown Report backed the government's overall policy but recommended that the bidding and evaluation should be strengthened and simplified, and that more English franchises should be devolved to the relevant authorities. What impact will these recommendations have on the future of the bidding system and what does it mean for current franchise holders? Given the stringent level of efficiencies that the McNulty report targeted it is imperative for the rail industry to work together to pool resources, integrate transport and deliver value for money. Will a drive for efficiency unlock new sources of funding and investment or will it have an adverse affect on modernising our railways?

In January fares in England, Scotland and Wales rose by an average 4.2%. Fares have gone up by more than inflation for 10 successive years, resulting in some of the most expensive rail journeys in Europe. Although the argument is that the extra money is helping to fund investment programmes across the network, fares could rise three times faster than salaries if the government continues to stick with its current policy. Given rising infrastructure costs and overcrowding problems, how can the industry strive to deliver better value to the passenger as well as to the taxpayer? Will our railways continue to be accessible to all or are there passengers in danger of being priced out of the market?

Don't miss our fourth national Railway Improvement: Getting Britain On Track conference that will explore the challenges facing both passenger and freight rail and discuss how to meet increasing demand and strained capacity in the future. Delegates will hear updates on the latest rail projects, where efficiencies have been gained and what can be learned, and what is needed to move our rail system forward.