NSAR Policy Update: December 2025

Railways Bill Second Reading: Key Takeaways from the Debate

The Railways Bill had its second reading earlier in the week, passing by 329 to 173 votes.

The Bill

The Transport Secretary opened the debate by arguing that the Bill is a landmark piece of legislation necessary to fix the railway’s long-standing problems:

• Ending Fragmentation: The core purpose is to replace the “broken, outdated model” of 17 separate organisations by merging track and train operations into Great British Railways (GBR), creating a single “directing mind.”
• Accountability and Efficiency: GBR will be a publicly owned body held unambiguously accountable to Parliament for its performance, ending the “blame game” that results from fragmented contracts and inefficient bureaucracy.
• Passenger Focus: The Bill is designed to deliver a more reliable and affordable railway, enabling GBR to simplify the bewildering array of tickets and set fairer fares.
• Strengthened Watchdog: The new law will strengthen the Passenger Watchdog, giving it new powers to set and monitor consumer standards, including accessibility and compensation.
• Long-term Strategy: The Bill mandates the creation of a long-term rail strategy, which the Secretary of State will provide stability and end short-term, stop-start planning for the industry and investors.

Main Concerns and Criticisms Raised by MPs

MPs broadly welcomed the principle of integration but raised concerns about the Bill’s structure and detail, with key issues including:

• Missing Detail: The most common concern raised was that the Bill is an enabling framework that is light on detail, making it hard to assess how the body will function in practice.
• Excessive Ministerial Power: Some MPs argued that the Bill grants the Secretary of State too much power to determine the functions, duties, and structure of GBR, threatening its true independence.
• Conflict of Interest: Other MPs warned that GBR, as both the infrastructure owner and the main passenger operator, creates an inherent conflict of interest. This, they argued, could lead GBR to unfairly disadvantage private rail freight and open-access passenger operators when allocating track capacity, stifling innovation and competition. They asserted that stronger safeguards are needed to prevent this, which are currently not included in the Bill.
• Regulation and Accountability: Concerns were also raised about economic regulation and the accountability of Great British Railways (GBR). Some MPs were particularly vocal that the authority of the Office of Rail and Road (ORR) is being reduced, most notably under the new access regime, which demotes it from primary regulator to an appeals body. They argued that as GBR becomes a larger, more centralised organisation, it will consequently require stronger external oversight. Further issues were raised regarding a lack of safeguards for freight, with MPs warning that a weaker regulator risks poorer protection for freight paths.
• Devolution: Several MPs argued that the bill was not providing Mayoral Strategic Authorities with enough power. They warned that its promise of local input is insufficient, as the new national body is only required to “have regard to” the local plan, a legal obligation they asserted that is easy to ignore

• Some Welsh MPs also criticised the Bill, which they perceived to centralise power over Welsh rail infrastructure in Westminster rather than devolve control to the Welsh Government.

• Long-Term Strategy: Issues were raised about the long-term plan outlined in the bill. Opponents expressed concern that the plan was not concrete enough, stating it lacks guaranteed, multi-year funding to ensure its stability. They warned this funding gap could make the strategy vulnerable, especially as future governments would invariably change direction, risking a return to the unreliable, short-term planning the bill aims to fix.

• Fares: MPs questioned the effectiveness of the reforms on consumers, noting that the Bill does not include measures to reduce high passenger fares.

• Schedule 2 and Funding Instability:MPs raised particular worries that the funding mechanisms for GBR detailed in Schedule 2 of the Bill could be changed or amended at any time by the Secretary of State without oversight.  This was argued to create significant uncertainty for long-term industry planning, as funding crucial for stability could be altered mid-period.

 

Next Steps

The Bill will now enter the Committee Stage in the House of Commons. A Public Bill Committee will scrutinise the Bill’s text line by line, with likely focus on many of the issues raised above. We expect freight, the passenger watchdog, devolution, and accountability to come under particularly close examination. The committee will agree on amendments, and approved amendments will be incorporated before the Report Stage.

This stage will have to conclude by Thursday, 12 February 2026.

A deeper dive into the Bill and some analysis on its implementation for Rail and Skills can be read here: https://www.nsar.co.uk/2025/11/nsar-member-update-the-railways-bill/

 

Apprenticeship Funding Announcement

Earlier in the week, the Government provided further details on investment into apprenticeships, aimed at increasing opportunities for young people and better aligning skills training with local labour market needs.

The headlines from the announcement include:

• £725 million investment to deliver more apprenticeships for young people and to help match skills training with local job opportunities.
• Full funding for SME apprenticeships: The Government will cover apprenticeship costs for young people under 25 at small and medium-sized enterprises (SMEs), increasing access to training.
• £140 million Mayoral Pilot: Backing thousands more apprenticeship starts for young people through a partnership with local leaders.
• 50,000 New Opportunities: Investment will equip 50,000 young people nationwide for future jobs through more apprenticeships and training courses.

£140m Mayoral Pilot
Much of the support is, in fact, repackaged from previous announcements (such as the increased funding for SMEs, which was included in the Budget). However, the £140 million Mayoral Pilots is new and represents a welcome step forward. Under the proposals, Mayors will play a more active role in helping young people, particularly those who are NEET (Not in Education, Employment, or Training), move into apprenticeships with local employers.

NSAR’s view:
This locally focused approach aligns closely with NSAR’s position. We have consistently argued that strengthening the rail sector’s workforce requires targeted, place-based support that national programmes alone cannot provide, helping more people access the many opportunities the industry offers across the country.

However, important questions remain about how the pilot will operate in practice, particularly regarding the specific responsibilities Mayors will take on. Equally, the exact role of employers, who must be front and centre for any such programme to work, needs clarification. Further details from the Government will therefore be essential.

If you would like to discuss any of the developments in this briefing, please get in touch with NSAR Head of Policy and Engagement: edward.hughes@nsar.co.uk