New proposals set out for rail franchising

Plans for future franchises to be offered on a basis of ten to 15 years and to be more flexible and responsive to passengers' needs.

New proposals for rail franchises have been set out.

They would be longer, more flexible and more responsive to the needs of passengers and provide better value for taxpayers.

Currently the majority of rail franchises are let for around eight years but, under the proposals, future franchises will be offered on a basis of between ten to 15 years and bidders will be given the opportunity to present the case for a longer contract which includes additional investment.

Operators would get greater commercial freedom to innovate in the way they deliver services in return for more private investment in the railways.

The reforms will also set tough requirements for train operators to deliver on passenger satisfaction, who could face being stripped of their contracts if they fail to meet those requirements.

The proposals were set out in a public consultation which seeks views from across the rail industry, passengers and the general public on the government’s approach to rail franchising and the benefits that longer franchises and increased private sector investment in the railways would be able to offer.

Franchise specifications will also be designed to allow scope for operators to offer innovative solutions and bidders will be free to offer their own additional plans and options in their bid.

Rail Minister Theresa Villiers said: "We need to reform franchising to bring in more private sector investment in order to help deliver important improvements to the railways that passengers want."

"We need a system that sets the private sector operators tough requirements on passenger outcomes and satisfaction, but gives them more scope for enterprise and innovation in working out the best way to deliver them."

Further information:
Department for Transport