In the run-up to the July 2024 General Election and following the formation of the new government, a wide-ranging reform agenda was outlined spanning transport, infrastructure, and skills. Early policy statements, including the King’s Speech and the Plan for Change, set out commitments across multiple areas. These included the public ownership of passenger rail services, the legislative establishment of Great British Railways (GBR), a long-term Infrastructure Strategy, a new Industrial Strategy, and the creation of Skills England.
These briefing outlines progress on these ambitions over the past 12 months.
Key Takeaways
- The government has outlined an ambitious reform programme, but much remains at the intent stage.
- Public ownership is now the default for passenger services, with initial transfers completed.
- GBR is progressing slowly. A Shadow GBR is in place but lacks statutory powers.
- Skills England is operational but focused narrowly on eight priority sectors
- The Spending Review confirmed major capital funding, though DfT day-to-day budgets were cut.
- The 10-Year Infrastructure Strategy reaffirmed existing commitments but lacked some needed detail.
- Rail missed out on a significant role in the industrial strategy
Public Ownership of Passenger Services
The Passenger Railway Services (Public Ownership) Act 2024 made public ownership the default as contracts expire. Transfers began with South Western in May 2025, to be followed by c2c and Greater Anglia later in the year. Further transitions are scheduled quarterly until October 2027.
Where we are now: The legislation is in force, with transfers underway.
Great British Railways (GBR)
Progress on GBR has been slower than expected. A consultation on the Railways Bill closed in April 2025, with legislation anticipated later this year.
Since September 2024, a Shadow GBR has been in operation, bringing together senior leaders from Network Rail, the Department for Transport’s Operator of Last Resort, and the Rail Services Group. Its early work includes piloting fare reforms and exploring how to deliver social value under the new model.
A notable step has been the unification of Southeastern and Network Rail’s Kent route under single leadership.
Where we are now: Shadow GBR is active but without legal authority. Full implementation is unlikely before 2027.
Skills England
The Skills England Bill, established the body to provide leadership, simplify the fragmented system, and align skills provision with economic need.
The body is now operational, but early activity has focused almost entirely on eight priority sectors. As a result, engagement with the rail sector has been limited.
Key developments:
- Funding has been shifting from Level 7 apprenticeships to Level 2 and 3.
- Foundation Apprenticeships have been announced
- Apprenticeship Levy reform is underway, but flexibility mainly applies to the eight priority sectors and substantive detail is light.
Where we are now: Skills England is active, but its remit remains narrow. Rail has seen minimal engagement or progress.
Devolution
The government’s manifesto set out plans to give local government greater control, particularly through Strategic Combined Authorities (SCAs). This was formalised in the Devolution White Paper (December 2024).
For rail, SCAs may take on certain local services. In skills, they will assume responsibility for most of the Adult Skills Fund (excluding apprenticeships) from 2026/27 and share oversight of Local Skills Improvement Plans and 16–19 provision.
This may allow for more tailored local responses, but concerns remain that further devolution could fragment the system and weaken national coherence from GBR and Skills England.
Where we are now: The new framework is in place. Implementation is due to begin from 2026/27.
The Spending Review
Published in June 2025, the Spending Review confirmed continued capital investment in key rail projects, despite prior expectations of deep cuts. However, reductions to DfT’s day-to-day budgets were also announced, though less severe than feared.
Headline Rail Commitments
- HS2: £25.3 billion
- Regional Transport: £15.6 billion for city region projects
- TRU (TransPennine Route Upgrade): £3.5 billion additional funding
- East-West Rail: £2.5 billion additional funding
- Midlands Rail Hub: Funding confirmed
- Welsh Rail: £445 million over ten years
- TfL: £2.2 billion over three years
- Local Transport Grants: Set to quadruple by 2029–30
Headline Skills Commitments
- Education funding: Real-terms growth of 0.8% per year, rising to £109.2 billion by 2028–29
- Further education: An additional £1.2 billion annually by 2028–29
- Defence impact: Rising defence budgets may draw workers from overlapping sectors such as rail, intensifying skills shortages
10-Year Infrastructure Strategy
Published alongside the Spending Review, the 10YIS sets out a national plan for infrastructure modernisation. Rail features prominently, though most announcements reaffirm earlier commitments.
Key points:
- Projects such as HS2 Phase 1, TRU, East-West Rail, and urban mobility were reaffirmed
- There was little new detail, and no clarity yet on the Northern Powerhouse Rail programme
Positive developments:
- Greater emphasis on public-private investment
- A forthcoming procurement consultation will aim to link contracts with skills, job creation, and social value
- Green Book reforms broaden appraisal criteria to include social and economic outcomes
- A new digital pipeline, just published, will support workforce planning and investment, a long-standing NSAR priority. It represents a clear improvement on previous pipelines, which lacked detail and strategic timelines. However, it currently includes less data in some areas. For example, annual spend profiles are missing, and there is no labour demand analysis yet. That said, such features are referenced under “Future Improvements.
Delivery and oversight:
The new National Infrastructure and Service Transformation Authority (NISTA) has been established by merging the Infrastructure and Projects Authority and the National Infrastructure Commission. NISTA is tasked with overseeing delivery, coordinating departments, and managing the digital pipeline.
Where we are now: NISTA is operational. While the strategy affirms positive ambitions, further delivery detail is needed.
Industrial Strategy
The Industrial Strategy was designed to unify government initiatives and drive growth. However, rail was largely excluded.
This represents a missed opportunity. Rail infrastructure underpins many of the government’s wider goals, and its omission from the strategy is concerning given its economic and strategic importance.
Analysis
There is renewed momentum in rail policy, marked by several welcome reforms and funding decisions. Capital commitments, procurement reform, and updates to the Green Book represent meaningful progress.
However, one year on, many key reforms and decisions remain unimplemented. Progress has been slow in several areas, particularly with Great British Railways, which shows limited visible advancement despite ongoing political support.
Of particular concern is rail’s minimal role in the Industrial Strategy. This restricts both the sector’s potential and the wider ambitions for growth. Achieving national growth goals will be difficult without positioning infrastructure, including rail, more centrally in the agenda.
Skills policy has also seen limited progress. The reforms originally proposed, alongside Skills England’s initiatives, have yet to fully benefit the rail sector. Workforce pressures remain significant, and without timely action, skills shortages could further constrain delivery as major infrastructure projects advance.
On balance, while progress has been slower than the industry would prefer, positive steps are underway. Greater progress in next year’s update will be essential to fully realise the government’s rail agenda and support growth.
Rail Policy Timeline: 2025–2026
Summer 2025
- Industrial Strategy consultations on procurement, sector support, and energy costs
- Government response to the Railways Bill consultation
Autumn 2025
- Expected introduction of the Railways Bill, establishing GBR’s statutory powers
Spring 2026
- First wave of devolved skills powers: SCAs assume shared responsibility for Local Skills Improvement Plans and 16–19 provision
Watch this space
Procurement reform is expected to become a major driver of change over the coming year, with social value set to play a significantly greater role. A consultation currently underway will inform upcoming changes to procurement rules. When these reforms take effect, they could have a substantial impact on the rail sector, where major infrastructure projects offer clear opportunities to deliver long-term social value alongside core transport outcomes.