DEVOLUTION OF RAIL FRANCHISING. A new strategy for rail in the North of England

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1 DEVOLUTION OF RAIL FRANCHISING A new strategy for rail in the North of England

2 A BETTER RAILWAY IN THE NORTH We want the economy and prosperity of the North to grow and rail will play a pivotal role in supporting this. In the past decade growth in usage of the railway has supported our growing economy, helping it meet its full potential. Devolving decision-making will ensure that priorities for the development of rail in the North are increasinlg focussed on supporting economic prosperity and regeneration. RAIL FRANCHISING AND THE NORTH TODAY Passenger services in the North are provided by ten different franchisees and two open access operators. The two franchises focussed on the North are TransPennine Express and Northern. Between them they cover over 500 stations in 33 local transport authorities. The services cover all of the major conurbations and centres in the North and range from Stoke, Nottingham and Lincoln in the south to Northumberland, Glasgow and Edinburgh in the North. The current franchises are to be replaced in early 2016, with the Department for Transport due to begin the re-franchising process in early That process will start with a public consultation early in 2014 on the services that will form those new franchises. In 2012 DfT consulted on whether there was a case to devolve the responsibility for these franchises away from Westminster. Both the McNulty review into rail value for money, and the Brown review into rail franchising favoured more devolution in rail. North of England Authorities, have worked together to develop a proposition to government that would see responsibility for these franchised rail services pass to a new organisation called Rail North. In August 2013 Rail North submitted a formal proposition and business case to government setting out its case for devolution. We expect a decision by the Secretary of State on whether to progress devolution to the North in November. Your support for devolution would be welcomed. 2 RAIL NORTH

3 OUR PROPOSITION FOR DEVOLUTION Rail North has developed a proposition for the devolution of responsibilities for the rail services currently operated by both Northern and TransPennine Express. We believe that decision making for the railways in the North should be devolved to the North when both franchises are re-let in early A devolved railway in the North will be specified increasingly in conjunction with other programmes of spend, such as those relating to local transport investment, economic development, and the regeneration of the fabric of our towns and cities. If the decisions on programmes of spend such as these are made in the North then increasingly funds will be better directed on the wider priorities of the North. The devolved railway will focus on the places of the North, their prosperity and passengers. The North is connected by common economic objectives. Places across the North are becoming ever more interdependent. Connections between places must become stronger. The railway has a key role to play in a more robust North of England economy. Our proposition to government sets out the detailed work we have carried out on the legal underpinnings and organisational design of the new structures. This includes proposals for new statutory legal powers, the legal and organisational structures associated with the new executive body, and robust risk-sharing arrangements between central government and the parties in the North who choose to bear risks. A 20-YEAR VISION TO DEVELOP RAIL IN THE NORTH OF ENGLAND 3

4 LTA AREAS COVERING RAIL NORTH SCOTL A ND CUMBRIA LANCASHIRE & CUMBRIA BLACKPOOL LANCASHIRE BLACKBUR WITH DARWEN LIVERPOOL CITY REGION GREATER MANCHESTER MERSEYSIDE WARRIN HALTON CHESHIRE & THE POTTERIES 4 RAIL NORTH Contains Ordnance Survey data Crown copyright and database right 2010 Transport for Greater Manchester CHESHIRE WEST & CHESTER WA L ES SHROPSHIRE

5 THE NORTH EAST NORTHUMBERLAND TYNE & WEAR COUNTY DURHAM H D D DARLINGTON H HARTLEPOOL MD MIDDLESBROUGH RC REDCAR & CLEVELAND SN STOCKTON-ON-TEES RC SN MD NORTH & THE HUMBER YORK EAST RIDING OF E KINGSTON UPON HULL WEST WEST RN N NORTH LINCOLNSHIRE GREATER MANCHESTER SOUTH NORTH EAST LINCOLNSHIRE SOUTH NGTON LINCOLNSHIRE DERBYSHIRE CHESHIRE EAST NOTTINGHAMSHIRE STOKE-ON-TRENT EAST MIDLANDS NOTTINGHAM A 20-YEAR VISION TO DEVELOP RAIL IN THE NORTH OF ENGLAND 5 STAFFORDSHIRE DERBY

6 A LONG TERM RAIL STRATEGY FOR THE NORTH A long term strategy for rail in the North will set the framework for the improved services we seek through the devolution of franchising responsibilities. New franchises need to be responsive to the wider needs of the North of England. Alongside the development of the devolution and franchising proposition the authorities in the North, working with Local Enterprise Partnerships, Chambers of Commerce and other stakeholders have developed a Long Term Rail Strategy for the North of England. This strategy takes a twenty-year view across the North of all rail services (passenger and freight). The document was published for public consultation in July and can be found at Comments would be welcome before 21 October. The strategy will help frame the outputs for the new North of England franchise(s). The North of England accounts for 25% of the national economy larger than Scotland, Wales and Northern Ireland combined. At 311 billion Gross Value Added per year, our economy is bigger than the individual Scandinavian economies of Sweden, Norway and Denmark. Yet, the North under-performs economically in comparison to other parts of the UK. It has a higher proportion of public sector jobs and has been hit harder by the economic downturn. The North lacks economic cohesion and transport is a factor in this. technology and creative industries. To continue to grow in the North these sectors need good business-to- business connectivity within the North, to London and other key business centres in the country, and internationally. Many of the North s towns and cities have seen significant redevelopment over the last decade, making them more attractive leisure destinations and supporting a flourishing retail economy. The five national parks in the North are significant tourism destinations, as are cities such as York and Chester and our seaside resorts and coasts. Leisure and tourism are both significant generators of rail travel. Rail in the future will continue to play a major role in shaping and promoting the growth and redevelopment of our major centres and attractions. The 26 universities in the North, as well as being key drivers of economic growth, also generate significant travel which is placing new demands on the rail network. Rail in itself is a significant employer in the North and is a key driver and enabler of growth in new economic sectors. Four key themes emerged from the draft Long Term Rail Strategy and are set out opposite. Rail has played a major role in the reshaping of the economy of the North over the last 30 years. As primary and manufacturing industries have declined, so new sectors have developed such as biotechnology, information 6 RAIL NORTH

7 OUR STRATEGY The Long Term Rail Strategy focuses on four key themes: CONNECTIVITY Better connectivity, with targeted improvements to journey times, service frequencies and improved connections to make end-to-end journey times quicker. COHERENCE A more coherent and user-friendly network: a network with the visible coherence of the London Underground delivered over the North s wide geography. This needs defined categories of train services as well as planning the North s many routes to operate together as a single whole with a single simplified fares structure. CAPACITY Increased capacity, both on train so that passengers do not experience excessive overcrowding and on track so additional demand for economically worthwhile passenger and freight movements can be accommodated. COST EFFECTIVENESS As use of the North s rail services grows, running costs per passenger and tonne of freight carried need to fall. The key to achieving this is investment. A 20-YEAR VISION TO DEVELOP RAIL IN THE NORTH OF ENGLAND 7

8 Rail North represents 33 Local Transport Authorities working together to devolve responsibility for rail franchising from Whitehall to the North of England.