Railways Bill (Fourteenth sitting)

The Committee consisted of the following Members:

Chairs: Paula Barker, Wera Hobhouse, Sir Alec Shelbrooke, † Matt Western

Argar, Edward (Melton and Syston) (Con)

† Caliskan, Nesil (Comptroller of His Majesty's Household)

Conlon, Liam (Beckenham and Penge) (Lab)

† Francis, Daniel (Bexleyheath and Crayford) (Lab)

† Glover, Olly (Didcot and Wantage) (LD)

† Greenwood, Lilian (Parliamentary Under-Secretary of State for Transport)

† Hatton, Lloyd (South Dorset) (Lab)

† Kirkham, Jayne (Truro and Falmouth) (Lab/Co-op)

† Mather, Keir (Parliamentary Under-Secretary of State for Transport)

† Mayhew, Jerome (Broadland and Fakenham) (Con)

Morello, Edward (West Dorset) (LD)

† Ranger, Andrew (Wrexham) (Lab)

† Robertson, Joe (Isle of Wight East) (Con)

† Shanker, Baggy (Derby South) (Lab/Co-op)

† Smith, Rebecca (South West Devon) (Con)

† Smith, Sarah (Hyndburn) (Lab)

Turner, Laurence (Birmingham Northfield) (Lab)

Rob Cope, Francis Morse, Dominic Stockbridge, Claire Cozens, Committee Clerks

† attended the Committee

Public Bill Committee

[Matt Western in the Chair]

Railways Bill

New Clause 31

Minimum service levels

“(1) Within six months of the passing of this Act, the Secretary of State must by regulations, make provision for minimum service levels to operate on passenger railway services during periods of strike action.

(2) Regulations under subsection (1) may repeal or otherwise amend provisions in the Employment Rights Act 2025, insofar as is necessary for the purposes of this section.

(3) Regulations under subsection (1) must include provision for—

(a) minimum levels of service on principal passenger rail routes during periods of strike action, including required service frequency, core connectivity obligations and protections for first and last trains,

(b) a minimum percentage of scheduled services required to operate during periods of industrial action, and

(c) minimum staffing requirements to deliver service levels under paragraph (a), including train crew, station staffing and customer support.

(4) Regulations made under subsection (1) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(5) When minimum service levels are in operation under this section, Great British Railways must—

(a) set standards for the provision to users of the railway of real-time information, disruption alerts, and alternative route guidance when minimum service levels are in force,

(b) set standards for minimum continuity of accessibility services, including Passenger Assist, lift availability, and alternative accessible transport arrangements,

(c) ensure that freight path allocations are not unnecessarily disrupted, and

(d) require that all operators comply with the minimum service levels provided for by regulations under subsection (3), as a condition of holding access rights or capacity entitlements.

(6) Within six months of the passing of this Act, the Secretary of State must lay before Parliament a document setting out a framework for minimum service levels under this section.

(7) With one year beginning on the day on which regulations are made under subsection (1), and within each period of a year thereafter, Great British Railways must lay before Parliament a report on compliance with minimum service levels, including reasons for any failure by operators to secure the required thresholds, and what actions GBR and other operators are taking to improve performance.”—(Jerome Mayhew.)

Brought up, read the First time, and Question proposed (this day), That the clause be read a Second time.

I remind the Committee that with this we are discussing the following:

New clause 32—Working Practices and Productivity Modernisation Framework—

“(1) Within 12 months of the passing of this Act, the Secretary of State must publish a Working Practices and Modernisation Framework (‘the Framework’).

(2) The Framework must include measures to—

(a) enable all passenger routes to be planned and delivered as a seven-day service, within the pay and conditions for standard working hours;

(b) enable drivers to operate train doors without additional payments in locations where this is not yet standard practice;

(c) require Great British Railways to establish a train driving school with updated training methods, with the purposes of reducing route-knowledge training times and increasing driver availability;

(d) end practices including—

(i) short-notice holiday approvals;

(ii) dependency on overtime to compensate for sickness absence or annual leave;

(iii) the prohibition on driving more than one journey over the same rails;

(e) introduce multi-disciplinary and flexible maintenance teams in GBR;

(f) support the adaptation of drone-based and digital inspection of railway infrastructure;

(g) prohibit unnecessary delays in introducing new rolling stock arising from route-learning requirements or working practices that exceed what is reasonably required for the safe operation of the railway, ensuring new fleets can deploy when manufactured;

(h) permit driver managers to drive trains when required;

(i) require maintenance and operational teams based in a specified areas to assist teams in neighbouring areas;

(j) prevent the Secretary of State from awarding general pay rises to any area of the rail workforce where—

(i) workforce productivity has fallen, or

(ii) where actions required in the Framework have not been implemented.

(3) Great British Railways has a duty to secure compliance with the Framework.

(4) Where the duty on Great British Railways under subsection (3) applies in respect of services which are run by any person other than Great British Railways, Great British Railways must fulfil the duty via access agreements with the person running those services.

It is a pleasure to serve under your chairship, Mr Western, in what could well be our final session, unfortunately, on this big and beautiful Bill, as somebody across the pond might say.

I thank the hon. Member for Broadland and Fakenham for new clause 31. The previous Government introduced minimum service levels legislation akin to that proposed in the new clause, which this Government repealed under the Employment Rights Act 2025 as it did not support a positive and productive relationship between employers, employees and their trade unions. Indeed, it served only to exacerbate the national rail disputes under the previous Government, who saw two years of widespread strikes and disruption to millions of passengers.

The previous Government’s inability to solve the industrial dispute is estimated to have cost £850 million in lost revenue—a debilitating amount for industry and the taxpayer. In agreeing pay deals last year, we have more than halved the proportion of rail services lost due to cancellations and national strikes since the height of industrial action under the previous Government, and we have begun the critical job of making the railway work for the passenger once again. Further, although many rail employers had the opportunity to use minimum service levels regulations, none chose to do so as they deemed them either unworkable or unnecessary. For those reasons, we do not agree with the principle behind the new clause, and I therefore urge the hon. Gentleman to withdraw it.

On new clause 32, the hon. Gentleman’s proposed working practices and productivity modernisation framework under Great British Railways covers various areas, with the aspiration, which the Government share, of delivering a modernised railway that fully meets the needs of passengers. I am grateful to him for his considered suggestions for a framework. It covers some matters that we are already taking steps to address, such as the extension of rest day working agreements to improve the reliability of train services seven days a week. As I confirmed to the hon. Gentleman last week, some train operators already have Sunday in their working week, and we are very serious about improving performance everywhere. We want a railway that works on all seven days of the week, which is why we have instructed train operators to set out detailed resourcing plans, including on recruiting sufficient drivers and crew. However, the suggested framework also proposes some changes that could breach an individual’s contractual terms and conditions of employment. Such matters are for the employer and the employees, through their trade unions, to negotiate under collective bargaining agreements. They need to be negotiated and updated as part of staff contracts, and that is not appropriate for legislation.

The Minister has inadvertently misunderstood that paragraph of the new clause; it does not refer to performance but to productivity.

I thank the shadow Minister for that important clarification and I happily correct my remarks to reflect that. However, I do not believe that it changes the substance of my point: improvement of performance and productivity can be achieved through myriad factors that do not include preventing the Secretary of State from awarding pay rises to workers when the level of train performance has fallen. There is a point about fairness and equity there, as productivity is outwith the control of some people who work on the railways. The amendment would, in effect, punish people for factors that could be beyond their control.

That is an interesting point. If the productivity of a private business falls, it becomes less profitable and cannot afford pay rises. Should the same attitude not be directed to public sector bodies? Where productivity falls, the people who suffer are the taxpayers. As the Secretary of State and GBR stand in the shoes of the taxpayer, should they not apply the same approach that the private sector has to live with?

The shadow Minister makes a valid point about the need to ensure value for money for taxpayers and to ensure productivity as part of GBR’s processes. We differ on the mechanism by which those efficiencies are achieved. GBR will be incentivised to improve performance via its performance duty and, in extremis, GBR and the Government will work with unions as partners to achieve necessary changes. We have discussed at length, when considering the Bill, the myriad forms of accountability and enforcement of consumer standards and the need to drive competition where it drives performance in some areas of the railways. However, our approach to union relations has been different from that of the previous Government: it has been to get around the table to address matters and avoid the need for industrial action. That in itself is a driver of productivity on the railway, which is in stark contrast to more of a scorched earth approach from the last Government, which resulted in strike after strike, often costing the taxpayer in the process.

Is it not the case that in recent years public sector pay has fallen hugely behind private sector pay, so there is an awful lot of catching up to do?

My hon. Friend is right to have the aspiration that public sector workers, who keep the wheels of our economy turning by facilitating connectivity and allowing the private sector to thrive, deserve to be fairly remunerated for doing so. Having a public sector body run in the public interest provides efficiencies in itself, with publicly owned English rail operators receiving 33% of Government funding and yet generating £4.5 billion or 38% of the income. If we remove the £850 million of unnecessary strike costs that would have been incurred, that shows that efficiencies and productivity are being built into the system by having a fairer, more decent and practicable relationship with trade unions.

On a more specific point, drone-based and digital inspection of railway infrastructure was also mentioned. Such inspection is already carried out by Network Rail and there are no plans to change that under GBR. Consequently, I urge the hon. Member for Broadland and Fakenham not to move new clause 32 and to withdraw new clause 31.

I thank the hon. Member for Didcot and Wantage for tabling new clause 55. It is imperative that GBR delivers for its passengers and employees alike. GBR workers will be key stakeholders in its success, so it is important that they, and the trade unions that represent them, are treated with respect, listened to and involved in the key decisions that affect them. The model for how that will work in GBR is still being considered and developed, together with GBR’s corporate governance and employee engagement structures, and it would be inappropriate to commit GBR to reporting on its structure or employee engagement arrangements when decisions on such matters are still to be taken. I therefore urge the hon. Member not to move his new clause.

The Minister raises interesting arguments, but I wish new clauses 31 and 32 to be put to a vote.

Question put, That the clause be read a Second time.

115|0|3|8|The Committee divided:|Question accordingly negatived.||0|0

New Clause 32

Working Practices and Productivity Modernisation Framework

“(1) Within 12 months of the passing of this Act, the Secretary of State must publish a Working Practices and Modernisation Framework (‘the Framework’).

(2) The Framework must include measures to—

(a) enable all passenger routes to be planned and delivered as a seven-day service, within the pay and conditions for standard working hours;

(b) enable drivers to operate train doors without additional payments in locations where this is not yet standard practice;

(c) require Great British Railways to establish a train driving school with updated training methods, with the purposes of reducing route-knowledge training times and increasing driver availability;

(d) end practices including—

(i) short-notice holiday approvals;

(ii) dependency on overtime to compensate for sickness absence or annual leave;

(iii) the prohibition on driving more than one journey over the same rails;

(e) introduce multi-disciplinary and flexible maintenance teams in GBR;

(f) support the adaptation of drone-based and digital inspection of railway infrastructure;

(g) prohibit unnecessary delays in introducing new rolling stock arising from route-learning requirements or working practices that exceed what is reasonably required for the safe operation of the railway, ensuring new fleets can deploy when manufactured;

(h) permit driver managers to drive trains when required;

(i) require maintenance and operational teams based in a specified areas to assist teams in neighbouring areas;

(j) prevent the Secretary of State from awarding general pay rises to any area of the rail workforce where—

(i) workforce productivity has fallen, or

(ii) where actions required in the Framework have not been implemented.

(3) Great British Railways has a duty to secure compliance with the Framework.

(4) Where the duty on Great British Railways under subsection (3) applies in respect of services which are run by any person other than Great British Railways, Great British Railways must fulfil the duty via access agreements with the person running those services.

(5) Within 12 months of this Act coming into force and within every subsequent 12 months, Great British Railways must publish an annual report on the measures in the Framework.

(6) Any report produced under subsection (5) must include—

(a) a summary of measures taken to reform the rail workforce as a result of provisions of the Framework;

(b) data on—

(i) workforce productivity,

(ii) cost savings,

(iii) changes in overtime expenditure, and

(iv) reasons for any delays in implementation of the provisions of the Framework.

(7) The Secretary of State must lay before Parliament a copy of any report produced under subsection (5).

(8) The Secretary of State may issue directions to Great British Railways under section 7 of this Act where, in the opinion of the Secretary of State, it has not met its duty under subsection (3).” —(Jerome Mayhew.)

Question put, That the clause be read a Second time.

116|0|3|9|The Committee divided:|Question accordingly negatived.||0|0

New Clause 33

Long-Term Rolling Stock Leasing Framework

“(1) Within 12 months of the passing of this Act, the Secretary of State must publish a framework for the long-term leasing of rolling stock (‘the Framework’).

(2) The Framework must apply to all rolling stock agreements for use on infrastructure managed by Great British Railways.

(3) The Framework must include measures to—

(a) provide that rolling stock leases entered into, renewed or extended by Great British Railways or passenger operators for use on infrastructure managed by Great British Railways, have a minimum lease term of 15 years for new or renewed rolling stock, unless the Secretary of State determines that a shorter term is justified by exceptional operational or market circumstances;

(b) require Great British Railways to assess whole-life asset cost, maintenance, refurbishment and residual value when procuring or approving leases;

(c) provide Great British Railways with the power to specify obligations in long-term leases that support accessibility, improved energy efficiency, and interoperability across the network;

(d) ensure that long-term certainty supports—

(i) manufacturers of, and

(ii) persons who maintain

rolling stock by enabling investment in skills, supply chains and technological innovation;

(e) require that lease terms are consistent with Great British Railways’ long-term network strategy, its five-year funding settlements and its access and capacity allocation duties;

(f) require Great British Railways to publish an annual statement setting out—

(i) projected rolling stock needs for the 15 years following the publication of the statement;

(ii) any lease terms agreed within the year prior to the annual statement;

(iii) an assessment of the alignment of lease arrangements with the Framework’s objectives;

(iv) a value-for-money assessment of any new or renewed leases.

(4) Before issuing or revising the Framework, the Secretary of State must consult—

(a) Great British Railways,

(b) the Passenger Council,

(c) the Office of Rail and Road, and

(d) any other persons the Secretary of State thinks appropriate.

(5) Within 12 months of the passing of this Act and every subsequent 12 months, Great British Railways must lay an annual report before Parliament setting out its compliance with the Framework and the reasons for any departures from the minimum lease requirement.”—(Jerome Mayhew.)

Question put, That the clause be read a Second time.

117|0|4|9|The Committee divided:|Question accordingly negatived.||0|0

New Clause 35

Report on long-term pipeline for works

“(1) Within 12 months beginning on the day on which this Act is passed, Great British Railways must publish a report containing a long-term pipeline of infrastructure and rolling stock work affecting any line or service operated by Great British Railways (‘the works pipeline’).

(2) Great British Railways must publish further such reports within twelve months of the publication of the last such report under subsection (1).

(3) The Secretary of State must lay a report under this section before Parliament.

(4) Each report laid under this section must provide a works pipeline for the period of the following 15 years.

(5) Each works pipeline must include details of—

(a) infrastructure renewals;

(b) enhancements, including capacity schemes;

(c) digital signalling and technology programmes;

(d) major station works;

(e) rolling stock procurement;

(f) upgrade and refurbishment programmes.

(6) The works pipeline must specify the expected—

(a) timing,

(b) scope, and

(c) sequencing,

of renewal programmes, enhancements, and major technology transitions.

(7) The works pipeline must align with—

(a) The Rail Strategy’s objectives, and

(b) the funding provided for infrastructure and rolling stocks works during each Control Period.

(8) Each report laid under this section must include an assessment of—

(a) how the works pipeline will reduce inefficiencies in delivery of works, specifically in relation to—

(i) irregularity of gaps in funding, and

(ii) unstable or unreliable management of projects and programmes.

(b) how the works pipeline—

(i) has supported, and will support UK supply chain capacity;

(ii) has impacted protection of specialist skills within the rail industry; and

(iii) will support employment and apprenticeships.

(9) Each report must contain an assessment, during the year prior to its publication, of—

(a) progress in delivering any projects or programmes included in the works pipeline,

(b) any changes to projects or programmes included in the works pipeline, and reasons for those changes,

(c) the impact of the works pipeline on—

(i) industry investment,

(ii) inflation of costs in the rail sector, and

(iii) delivery capacity in the rail sector.

(10) Before publishing a report under this section, Great British Railways must consult—

(a) participants in the rail sector supply chain,

(b) rail industry bodies,

(c) the Scottish Ministers,

(d) the Welsh Ministers, and

(e) the Office of Rail and Road.

(11) Great British Railways has a duty to ensure that its integrated business plan and long-term procurement strategies pay due regard to the works pipelines included in the most recent report published under this section.

(12) On the day on which a report is laid before Parliament under this Section, a Minister of the Crown must make a statement to each House about how the works pipeline—

(a) aligns with the long-term rail strategy, and

(b) supports whole-network delivery priorities.”—(Jerome Mayhew.)

Question put, That the clause be read a Second time.

118|0|4|9|The Committee divided:|Question accordingly negatived.||0|0

New Clause 37

Great British Railways Accountability

“(1) Great British Railways must publish a business plan each year.

(2) The business plan set out in subsection (1) must include—

(a) a summary of activities that Great British Railways intends to undertake during the following year,

(b) how these activities will support the delivery of the Rail Strategy,

(c) the outcomes Great British Railways expects to achieve, and

(d) how these outcomes reflect the funding settlement for the relevant Control Period.

(3) Great British Railways must publish a delivery report each year (‘the Report’).

(4) The Report must set out progress made against the outcomes in the Rail Strategy, including—

(a) passenger experience,

(b) freight growth,

(c) accessibility,

(d) passenger growth,

(e) integration with housing and local transport, and

(f) long-term infrastructure and service improvements.

(5) The Report must assess Great British Railways’ performance against its statutory duties as set out in this Act.

(6) The Report must include Great British Railways’ performance against its key performance indicators set by the Office of Rail and Road, including—

(a) areas of underperformance,

(b) risks to delivery,

(c) corrective actions taken, and

(d) financial performance related to its business plan.

(7) The Office of Rail and Road must assess Great British Railways’ performance against its business plan, key performance indicators set out in section [Great British Railways: Key Performance Indicators] and statutory duties, and publish an annual assessment of its performance.

(8) If the Office of Rail and Road makes any finding of material underperformance in the assessment set out in subsection (7), it must give notice to—

(a) the Secretary of State, and

(b) Great British Railways.

(9) The Secretary of State must publish a written response within 90 days of receiving a notice under subsection (7).

(10) Within 90 days of receiving a notice under subsection (8), Great British Railways must set out—

(a) how it will rectify any underperformance identified in an assessment under subsection (7), and

(b) and how it will measure progress against any areas of underperformance.

(11) The Secretary of State must lay before Parliament a copy of—

(a) each business plan under subsection (1),

(b) each delivery report under subsection (3), and

(c) each assessment made by the Office of Rail and Road under subsection (7).

(12) When the Secretary of State lays a copy of the delivery report in accordance with subsection (11)(b), a Minister of the Crown must make a statement to each House of Parliament about the contents of the report.

(13) For the purposes of this section, ‘Control Period’ has the meaning given in any final decision taken by the Office of Rail and Road which concludes each periodic review of access charges as described in Schedule 4A of the Railways Act 1993.”—(Jerome Mayhew.)

Question put, That the clause be read a Second time.

119|0|3|10|The Committee divided:|Question accordingly negatived.||0|0

New Clause 42

Passenger growth target

“(1) The Secretary of State must set and publish a target to increase passenger numbers in Great Britain.

(2) The Secretary of State—

(a) must keep the target under review, and

(b) may revise or replace it.

(3) If the Secretary of State revises or replaces the target, the Secretary of State must publish the revised or replacement target.

(4) Great British Railways must, when exercising its statutory functions, have regard to—

(a) the target set by the Secretary of State under this section, and

(b) any strategy or policy of the Scottish Ministers relating to the growth of passenger numbers in Scotland.” —(Jerome Mayhew.)

Question put, That the clause be read a Second time.

120|0|4|9|The Committee divided:|Question accordingly negatived.||0|0

New Clause 45

Passengers’ Council: enforcement powers

“(1) Within 6 months beginning on the day on which this Act is passed, the Secretary of State must by regulations make provisions for the enforcement powers of the Passengers’ Council.

(2) Regulations under this section must make provision about—

(a) the making of orders by the Passengers’ Council relating to operator compliance with its purpose;

(b) procedural requirements relating to orders under paragraph (a);

(c) the validity and effect of orders under paragraph (a); and

(d) penalties associated with orders under paragraph (a).

(3) In making regulations under this section, the Secretary of State must have particular regard to sections 55 to 57A of the Railways Act 1993.

(4) Regulations under this section may amend provision made by or under—

(a) the Railways Act 1993;

(b) the Railways Act 2005.

(5) Regulations under this section are to be made by statutory instrument.

(6) Regulations under this section may not be made unless a draft of the statutory instrument has been laid before, and approved by a resolution of, each House of Parliament.”—(Jerome Mayhew.)

Question put, That the clause be read a Second time.

121|0|3|9|The Committee divided:|Question accordingly negatived.||0|0

New Clause 47

Rail freight target: Annual report on rail freight

“(1) Within 12 months of the passing of this Act, and every 12 months thereafter, Great British Railways must prepare and publish an annual report setting out—

(a) the steps it has taken to have regard to the rail freight target set under section 17;

(b) its performance in facilitating the carriage of goods by rail;

(c) any measures taken to protect and improve access for freight services;

(d) progress on enhancing the capacity and reliability of strategic freight corridors.

(2) The Secretary of State must lay a copy of the report before Parliament and provide the report to the Office of Rail and Road.

(3) The Office of Rail and Road must publish an assessment of the report within six months of its publication.”—(Jerome Mayhew.)

Question put, That the clause be read a Second time.

122|0|2|10|The Committee divided:|Question accordingly negatived.||0|0

New Clause 54

National signalling strategy

“(1) Within 12 months of the passing of this Act and every subsequent 12 months, Great British Railways must publish a national signalling strategy.

(2) Each strategy under subsection (1) must set out expected signalling renewal requirements by operating region and route.

(3) Signalling requirements as set out in subsection (2) must be informed by the principle that new or renewed signalling will be digital and based on standards set by the European Train Control System.

(4) Great British Railways must align each strategy to—

(a) the infrastructure capacity plan in section 60,

(b) the rail strategy in section 15,

(c) each funding period as set out in schedule 2, and

(d) current and future planned infrastructure including electrification and rolling stock changes.

(5) Great British Railways must set out how each strategy is used to inform procurement, leasing and allocation decisions.” —(Olly Glover.)

Question put, That the clause be read a Second time.

123|0|1|9|The Committee divided:|Question accordingly negatived.||0|0

New Schedule 1

Transfer schemes

1 (1) The property, rights and liabilities to be transferred may be specified or described by a scheme.

(2) A scheme comes into force on the date it appoints.

2 (1) The property, rights and liabilities that may be the subject of a transfer scheme include in particular—

(a) property, rights and liabilities that would not otherwise be capable of being transferred or assigned;

(b) property acquired in the period after the making of the scheme and before it comes into force;

(c) rights and liabilities arising in that period;

(d) rights and liabilities arising after the scheme comes into force in respect of matters occurring before it comes into force;

(e) rights and liabilities under a statutory provision;

(f) rights and liabilities relating to a contract of employment;

(g) criminal liabilities.

(2) A scheme may provide that transfers are to take effect irrespective of—

(a) any requirement to obtain a person’s consent or concurrence,

(b) any liability in respect of a contravention of another requirement, or

(c) any interference with an interest or right,

which would otherwise apply.

(3) Sub-paragraph (4) applies where a person would otherwise be entitled, in consequence of anything done, or likely to be done, in connection with a scheme—

(a) to terminate, modify, acquire or claim an interest or right to which the transferor is entitled or subject, or

(b) to treat such an interest or right as modified or terminated.

(4) That entitlement is enforceable in relation to the interest or right—

(a) in consequence of what is done or likely to be done, and

(b) in corresponding circumstances arising after the transfer,

to the extent only that the scheme provides for it to be so enforceable.

3 (1) A scheme may contain provision—

(a) for the creation, in favour of a transferor or transferee, of an interest or right in, or in relation to, property to be transferred in accordance with the scheme;

(b) for giving effect to a transfer to a person by the creation, in favour of that person, of an interest or right in, or in relation to, property to be retained by a transferor;

(c) for the creation of new rights and liabilities, including rights of indemnity and duties to indemnify, as between a transferee and a transferor.

(2) A scheme may contain provision for the creation of rights and liabilities for the purpose of converting arrangements between different parts of a transferor’s undertaking which exist immediately before the coming into force of the scheme into a contract between—

(a) different transferees, or

(b) a transferee and a transferor.

(3) A scheme may contain provision—

(a) for rights and liabilities to be transferred so as to be enforceable by or against—

(i) more than one transferee, or

(ii) both the transferee and the transferor, and

(b) for rights and liabilities enforceable against more than one of those people to be enforceable in different or modified respects by or against each or any of them.

(4) A scheme may contain provision for interests, rights or liabilities of third parties in relation to anything to which the scheme relates to be modified in the manner set out in the scheme.

(5) Paragraph 2(2) applies to the creation of interests and rights in accordance with a scheme as it applies to the transfer of interests and rights.

4 (1) A scheme may contain provision for imposing on a transferee or a transferor an obligation—

(a) to enter into such agreements as may be specified or described in the scheme with another person on whom a corresponding obligation is, could be or has been, imposed by virtue of this paragraph (whether in the same or a different scheme), or

(b) to execute such instruments as may be specified or described in the scheme in favour of any such person.

(2) That other person may enforce an obligation imposed on a transferor or a transferee by virtue of sub-paragraph (1) in civil proceedings—

(a) for an injunction,

(b) for specific performance of a statutory duty under section 45 of the Court of Session Act 1988, or

(c) for any other appropriate remedy or relief.

5 (1) Where a scheme provides for the transfer of property, rights or liabilities, or for the creation of interests, rights or liabilities—

(a) the property or interests, rights or liabilities vest, without further assurance, in the transferee at that time, and

(b) the provisions of that scheme in relation to that property or those interests, rights or liabilities have effect from the time when the scheme comes into force.

(2) Sub-paragraph (1) is subject to provision under a scheme for—

(a) the transfer of property, rights or liabilities, or

(b) the creation of interests, rights and liabilities,

to be effected by or under an agreement or instrument entered into or executed in pursuance of an obligation imposed by virtue of paragraph 4(1).

(3) A certificate issued by the person who made a scheme that any property, rights or liabilities have been transferred under the scheme is conclusive evidence of the transfer.

6 (1) A scheme may make provision for some or all of the powers and duties to which this paragraph applies—

(a) to be transferred to a transferee,

(b) to become powers and duties that are exercisable, or must be performed, concurrently by two or more transferees, or

(c) to become powers and duties that are exercisable, or must be performed, concurrently by a transferor and a transferee.

(2) The powers and duties to which this paragraph applies are the powers and duties conferred or imposed upon a transferor by or under a statutory provision so far as they relate to—

(a) property to be transferred in accordance with the scheme,

(b) carrying out works designed to be used in connection with such property, or

(c) acquiring land for the purpose of carrying out such works.

(3) This paragraph does not require a restrictive construction to be given to what may be transferred by virtue of paragraph 2(1)(e).

7 (1) A scheme may—

(a) make such incidental, supplemental, consequential and transitional provision in connection with the scheme as the appropriate Minister thinks fit;

(b) make different provision for different purposes.

(2) In particular, a scheme may make provision—

(a) for the transferee to be treated as the same person in law as the transferor;

(b) for agreements made, transactions effected or other things done by or in relation to the transferor to be treated, so far as may be necessary for the purposes of or in connection with the transfer, as made, effected or done by or in relation to the transferee;

(c) for references in an agreement, instrument or other document to the transferor, or to an employee or office holder of the transferor, to have effect, so far as may be necessary for the purposes of or in connection with a transfer, with such modifications as are specified in the scheme;

(d) for proceedings commenced by or against the transferor to be continued by or against the transferee.

(3) Sub-paragraph (2)(c) does not apply to references in a statutory provision.

8 (1) Where the transferor and transferee under a scheme that has come into force so agree, the scheme is to be treated for all purposes as having come into force with such modifications as may be agreed.

(2) An agreement under this paragraph which relates to rights and liabilities under a contract of employment may be entered into only if the employee is a party to the agreement.

(3) An agreement under this paragraph that adversely affects the property or rights of a person other than the transferor, the transferee or such an employee may be entered into only if that person is a party to the agreement.

(4) An agreement under this paragraph may include—

(a) any provision that could have been contained in the scheme;

(b) incidental, supplemental, consequential and transitional provision in connection with any such provision.

9 A scheme that contains provision for the transfer of rights and liabilities relating to a person’s contract of employment may make provision that is the same as, or similar to, the provision made by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246).

10 (1) A third party is entitled to compensation in respect of the extinguishment of that party’s entitlement where—

(a) the entitlement is to an interest or right which would, apart from a provision of a scheme and paragraph 2(3) and (4), have become enforceable in respect of the transfer or creation of any property, rights or liabilities in accordance with the scheme,

(b) the provisions of that scheme or of paragraph 2(3) and (4) have the effect of preventing that party’s entitlement to that interest or right from being enforced in respect of anything for which the scheme provides, and

(c) provision is not made by the scheme for securing that an entitlement to that interest or right, or to an equivalent interest or right, is preserved or created so as to arise and be enforceable in respect of the first occasion when corresponding circumstances next occur after the coming into force of the transfers for which the scheme provides.

(2) The amount of compensation to which a third party is entitled under this paragraph is the amount necessary for securing, to the extent that it is just to do so, that the third party does not suffer financial loss from the extinguishment of the entitlement.

(3) A liability to pay compensation under this paragraph falls on the appropriate Minister.

(4) This paragraph has effect in relation to—

(a) the provisions of an agreement or instrument entered into or executed in pursuance of an obligation imposed by a scheme, and

(b) the provisions of an agreement under paragraph 8 relating to property, rights or liabilities transferred or created in accordance with a scheme,

as it has effect in relation to the scheme but as if, in the case of an agreement under paragraph 8, only persons who are not parties to the agreement were third parties.

11 (1) The appropriate Minister may direct a body corporate within sub-paragraph (2) to provide such information as the Minister considers necessary for the purposes of making a scheme.

(2) The bodies corporate within this sub-paragraph are—

(a) Great British Railways;

(b) a company wholly owned by Great British Railways;

(c) a proposed GBR;

(d) a company wholly owned by a proposed GBR;

(e) a former GBR;

(f) a company wholly owned by a former GBR;

(g) a company jointly owned by two or more of the Secretary of State, the Scottish Ministers, the Welsh Ministers, Great British Railways, a former GBR and a proposed GBR.

(3) The direction must specify the period within which the information is to be provided.

(4) The period specified in the direction must be not less than 28 days beginning with the day on which the direction is given.

(5) If the body fails to comply with the direction, the appropriate Minister may serve a notice on the body requiring—

(a) production to the appropriate Minister of any documents which are specified or described in the notice and are in the custody or under the control of that body, or

(b) provision to the Secretary of State of such information as may be specified or described in the notice.

(6) Documents or information to be produced or provided in accordance with such a notice must be produced or provided at the time and place, and in the form and manner, specified in the notice.

(7) A direction or notice under this paragraph may not require—

(a) production of a document which a person could not be compelled to produce in civil proceedings, or

(b) provision of information which a person could not be compelled to give in evidence in such proceedings.

(8) If a body fails to comply with a notice under sub-paragraph (5), the court may, on the application of the Secretary of State, make such order as the court thinks fit for requiring the failure to be made good.

(9) Any order under sub-paragraph (8) may include provision requiring all the costs or expenses of, or incidental to, the application to be borne by one or more of the following—

(a) the body in default;

(b) any officers of that body who are responsible for its default.

(10) In this paragraph, reference to the production of a document includes reference to the production of a legible and intelligible copy of information recorded otherwise than in legible form.

12 (1) In this Schedule—

‘appropriate Minister’ means—

(a) in relation to a scheme under section (Transfer schemes made by Secretary of State), the Secretary of State;

(b) in relation to a scheme under section (Transfer schemes made by Scottish Ministers), the Scottish Ministers;

(c) in relation to a scheme under section (Transfer schemes made by Welsh Ministers), the Welsh Ministers;

‘scheme’ means a scheme under section (Transfer schemes made by Secretary of State), (Transfer schemes made by Scottish Ministers) or (Transfer schemes made by Welsh Ministers);

‘statutory provision’ means provision made by or under any of the following, whenever passed or made—

(a) an Act;

(b) an Act of the Scottish Parliament;

(c) an Act or Measure of Senedd Cymru (or an instrument made under such an Act or Measure);

(d) assimilated direct legislation;

‘third party’ , in relation to a scheme, means a person other than the transferor and transferee;

‘transferee’ —

(a) in relation to a scheme, means a person to whom property, rights or liabilities are transferred in accordance with the scheme, and

(b) in relation to particular property, rights or liabilities transferred or created in accordance with a scheme, means the person—

(i) to whom that property or those rights or liabilities are transferred, or

(ii) in whose favour, or in relation to whom, they are created;

‘transferor’ —

(a) in relation to a scheme, means the person from whom property, rights or liabilities are transferred in accordance with the scheme, and

(b) in relation to particular property, rights or liabilities transferred or created in accordance with a scheme, means the person—

(i) from whom that property or those rights or liabilities are transferred,

(ii) who, or whose property, is subject to the interest or right created, or

(iii) for whose benefit the liability is created.

(2) In this Schedule—

(a) a reference to employment includes (so far as necessary) a reference to employment in the civil service of the State, and

(b) a reference to a contract of employment is to be treated (so far as necessary) as a reference to the terms of employment in the civil service of the State.

(3) In this Schedule—

(a) a reference to a right or to an entitlement to a right includes a reference to an entitlement to exercise a right, and

(b) a reference to a right’s arising includes a reference to its becoming exercisable.”—(Keir Mather.)

Clause 87

Minor and consequential amendments

Question proposed, That the clause stand part of the Bill.

With this it will be convenient to discuss the following:

Government amendments 187 to 199.

Schedule 3.

Clause 88 stand part.

Clause 87 points towards schedule 3, which contains minor and consequential amendments arising from the Bill. The Bill has broadened its scope, and much of the related previous legislation will need altering slightly. These minor and consequential amendments allow for the necessary changes and updates to be made, and will help propel the Bill forward. I therefore commend the clause and schedule 3 to the Committee.

Amendments 188, 191 to 193 and 196 to 199 in my name are consequential amendments to the Railways Act 1993, the Railways Act 2005 and the Greater London Authority Act 1999 that reflect the removal of franchising. The new provisions about railway passenger services and the creation of GBR. For example, it was necessary to make some amendments to the closures regime in the 2005 Act as it was aligned with the franchising system in the 1993 Act, whereas we now need it to align with the Bill. Importantly, there is no change to the outcome to the closures process, and the role of the ORR and Ministers is not changing.

Amendment 190 ensures that documents sent in accordance with the Railways Act 1993 and the Bill can be sent electronically. It is a common and standard amendment to reflect technological developments. Amendments 187, 189, 194 and 195 remove provisions that are no longer necessary.

The last thing I will address in this group is clause 88, which I commend to the Committee. It will give the Secretary of State powers to make amendments that are consequential to the Bill. That will ensure that the statute book is tidy and appropriately reflects the changes the Bill makes. I stress that this power cannot be used to make policy changes and is intended only to ensure that the outcomes of the Bill are not hindered or confused by existing legislation that should have been consequentially amended.

I have no comments.

I thank the shadow Minister for that.

Schedule 3

Minor and consequential amendments

Amendments made: 186, in schedule 3, page 70, line 27, at end insert—

“7A In section 18, omit subsection (6A).”

Amendment 187, in schedule 3, page 70, line 28, at end insert—

“8A In section 22(1), omit ‘or Schedule 4A to this Act’.

8B In section 22C(2), for ‘, subsection (1) above or Schedule 4A to this Act’ substitute ‘or subsection (1) above’.”

Amendment188, in schedule 3, page 72, line 28, at end insert—

22A “(1) Section 130 is amended as follows.

(2) In subsections (1ZA) and (1ZB), omit ‘under Welsh franchise agreements’.

(3) In subsection (1ZC)(a)(ii), omit ‘under a Welsh franchise agreement’.

(4) In subsection (1A), for paragraphs (a) and (b) substitute—

‘(a) a Scotland-only service; or

(b) any other railway passenger service provided or secured to any extent by the Scottish Ministers.’.”

With this it will be convenient to discuss the following:

Government amendment 200.

Clauses 90 to 93 stand part.

Clause 89 provides clarity on the regulations that may be made under the powers granted by this Bill by listing the procedures that will apply to them.

Amendment 200, in my name, provides a definition of passenger transport executive for an integrated transport area. This is required in the Bill, as provisions elsewhere repeal a definition included in the 1993 Act that could otherwise have been relied on.

Passenger transport executives were established by the Transport Act 1968 to provide and coordinate public transport across modes in major urban areas. The evolving landscape of devolution has seen some authorities choose to absorb passenger transport executive functions into their mayoral combined authorities. However, the Greater Manchester, Liverpool City Region and North East combined authorities have chosen to retain separate passenger transport executives to deliver transport functions. This is a technical amendment, consistent with existing policy. It provides certainty for areas in England that still operate passenger transport executives, and supports wider Government commitments to close collaboration with local partners. I encourage Members to support it.

I will now address clauses 90, 91, 92 and 93. Clause 90 provides definitions and explanations of the words and phrases used in the Bill. Clause 91 sets out that the Bill extends to England, Wales and Scotland, and that clause 86, on the Luxembourg protocol, also extends to Northern Ireland. Clause 92 sets out the details of when a number of clauses will come into effect; clauses 85, 86, 88 to 91, 92 and 93 will all come into force on the day that the Bill receives Royal Assent, while the remaining provisions will come into force on the day, or days, set by the Secretary of State in regulations. Clause 93 sets out that this Bill, once it has become an Act, can be known as the Railways Act 2026.

For the very final time, I commend the clauses to the Committee.

Before I respond to that, Mr Western, is this my last opportunity to speak in the Committee?

No.

In that case, these are all straightforward ancillary parts to the Bill, and I have no comments to make.

Clause 89 ordered to stand part of the Bill. 

Clause 90

General interpretation

Amendments made: 200, in clause 90, page 53, line 12, at end insert—

“‘Passenger Transport Executive for an integrated transport area’ means a body which is the Passenger Transport Executive for an integrated transport area for the purposes of Part 2 of the Transport Act 1968;”

Amendment 263, in clause 90, page 53, line 31, at end insert

“, except in relation to the expression ‘wholly owned by the Crown’ (as to which see section 151(2) of the Railways Act 1993)”. —(Keir Mather.)

Clause 91

Extent

Amendments made: 201, in clause 91, page 53, line 32, at end insert—

“(A1) This Act extends to England and Wales and Scotland only, subject to subsections (A2) to (1).

(A2) Section 86 and this Part extend also to Northern Ireland.

(A3) His Majesty may by Order in Council provide for any of the provisions of section 86 and this Part, or any regulations under that section (whether made before or after the making of the Order in Council), to extend with or without modifications to the Isle of Man.

I am not going to suggest that we do not progress the Bill to its next stage, because I am not sure I would win that vote, but I want to take this opportunity to thank the Minister for the constructive approach that he has taken to addressing the various amendments and new clauses that the Opposition and the Liberal Democrats—I hope I can speak for them, too—have tabled. I am surprised that he did not adopt a single one of them, but he dealt with them in an unfailingly courteous and thoughtful manner, and I am very grateful to him.

I am also grateful to the Chairs—including you, Mr Western—for agreeing to hold the ring, and to the Clerks, who have done an excellent job helping us to navigate a process that, for me, anyway, is just as complex and confusing at the end of the Committee’s proceedings as it was at the beginning. That must make me a very slow learner.

Finally, I am grateful to all the Committee members, particularly those on the Government Benches. Having sat there myself for what felt like years, I know that it is deeply frustrating to be told by the Whips not even to intervene, let alone make a speech, while the shadow Minister expands at length. There are reasons why we do it, and I hope that those Government Members who have been on this side of Committees will remember them, but I am very grateful for the patience that they have shown me and for the work that they have done with the Committee as a whole.

With that, I am happy for the Bill to progress to the next stage.

It is a pleasure to serve under your chairship, Mr Western, during the final hour of this Bill Committee. May I briefly associate myself with the remarks of the shadow Minister? I thank everybody for their courteous and warm-spirited approach to proceedings, and I thank all the Chairs and the Public Bill Office for all their assistance.

May I begin by thanking everyone personally for the way that they have conducted themselves and approached the Bill? As a relatively new Minister taking on my first major piece of legislation, I have appreciated enormously the constructive approach of Members across the Committee. I want to read into the record my personal thanks, in particular, to those on the Government Benches: my hon. Friends the Members for Beckenham and Penge, for Bexleyheath and Crayford, for South Dorset, for Truro and Falmouth, for Wrexham, for Derby South, for Hyndburn and for Birmingham Northfield, as well as the Comptroller of His Majesty’s Household, my hon. Friend the Member for Barking, and the Under-Secretary of State for Transport, my hon. Friend the Member for Nottingham South.

I extend my thanks to the shadow Minister, who has worked assiduously to bring forward a number of constructive proposals, which, by virtue of us having had the opportunity debate them at length, I think have teased out interesting questions about how the Bill will progress, provided an important buttress against pre-conceived notions and allowed us to explore some of the issues in depth. I thank him for the constructive way in which he has engaged in the process.

Although he is not in his place, I thank the right hon. Member for Melton and Syston, who approached the Committee in his good-natured way, and I thank the hon. Member for South West Devon, who made many valid and respected contributions. The hon. Member for Didcot and Wantage certainly kept me on my toes on all aspects of railway nerdery—buttressed by his hon. Friend the hon. Member for West Dorset—and I thank him for it. The hon. Member for Isle of Wight East was characteristically forensic in his scrutiny of specific aspects of the Bill, and I thank him for his hard work.

May I also thank my Bill team, who have done an incredible amount of hard work over many months, predating my occupancy of this role, to make this piece of legislation possible? It is enormously appreciated. I thank all the Doorkeepers for facilitating our Divisions and keeping us safe; the Clerks for their assiduous work; and all the Chairs who have been in charge of our proceedings.