Upcoming funding settlement to cover five year period from spring 2024
Network Rail’s board is concerned that inflation could scupper investment plans for the next five-year funding settlement, outlined yesterday by the transport secretary.
In a written statement to parliament, Mark Harper set out the government main objectives for £44bn of investment in the rail body over control period 7, which runs from April 2024 to March 2029.
But board minutes from September, made public on the eve of Harper’s announcement, raise fears of the “risk to the CP7 plans” posed by “inflationary pressures”.
The minutes said the board was “concerned about the significant risks [inflation] could present to the funding [from government]”.
The high-level output specification released by Harper yesterday emphasises the Department for Transport’s commitment to rail reforms and focus on “supporting a safe, efficient and reliable railway for passengers and freight customers”.
It is for the independent regulator, the Office of Rail and Road, to consider how to achieve the government’s goals and to work with Network Rail and other stakeholders to allocate funding.
Next February, Network Rail will submit its strategic business plan to the ORR, which will assess its to ensure it meets government expectations.
The government has indicated in the Williams-Shapps Plan for Rail that Great British Railways – the planned successor body for Network Rail – would be responsible for commitments made for CP7.
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