UK’s Public Accounts Committee says, in a new report on the rail franchising programme, that is particularly concerned about the effects of declining competition within the programme.
The Committee assesses the progress and limitations of the Department’s (DfT) consideration of passenger experience when awarding franchises, concluding it is “not clear” when rail users will see promised improvements in service quality. It also finds more must be done “to develop partnerships with operators that facilitate innovation and improve services for passengers.
The Committee expresses concern about the Department’s competition-led approach to franchising, warning there is “a real risk to value for money” if market interest in the programme declines further.
It highlights the impact the “scale and uncertainty” of planned infrastructure work has on franchise competitions, contracts and costs.
More broadly, it concludes the Department lacks a coherent strategic vision for the rail system—presenting “a risk that it will make decisions now that prove costly in the future”.
“Our Report urges action in a number of priority areas and we will be expecting the Department to update us on its progress in the months ahead,” Meg Hillier, Chair of the PAC said.
The Committee’s subsequent Report identified serious failings in the Department for Transport’s management of the process, and made recommendations for the Department to implement to protect value for money.
The Department also commissioned its own inquiry into the collapse of the West Coast competition, as well as the Brown Review—a wider review of passenger rail franchising.
In March 2013 it launched a revised rail franchising programme of 15 competitions over an eight-year period. To maintain the provision of train services and to facilitate a staggered programme of competitions, the Department also planned to make 2 short-term, single tender actions (‘direct awards’).
Since the launch of the programme the Department has awarded 5 franchises through competitions and has made 11 direct awards.
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