Green flag for rail devolution – the art of the possible for Mayoral Combined Authorities

The UK Government’s English Devolution White Paper, released towards the end of last year, is at the centre of their legislative agenda. It sets policy for a material devolution of powers and funding to both Mayoral Combined Authorities (MCAs) and the soon-to-be-formed Strategic Authorities. Alongside this the recent Passenger Railway Services Act and forthcoming Rail Reform Bill are intended to simplify the rail industry structure. Together these offer MCAs a once in a generation opportunity to prioritise funding for and effectively deliver investment in rail. 

Conditions will be ripe to enable local decision makers to deliver their wider transport and economic plans to improve quality of life, boost their economies and integrate disparate transport networks. But are the MCAs and rail industry ready to work together to achieve this? 

What is the opportunity for MCAs? 

In recent years MCAs have increasingly struggled to develop their rail networks to their policy advantage, due to the post-privatisation industry structure and the heavy utilisation of the network compared to the pre-1990s. The challenge lies not necessarily with the ambition or intention of the MCA, but with the ability to navigate the complexity of the rail industry. Successfully securing funding for and delivering rail enhancements is fraught with obstacles not just for local authorities, but for the industry, sub-national transport bodies and central Government too. For example: 

• Rail infrastructure can be relatively expensive, making it difficult to identify investment that is both value for money and affordable within a local transport context 
• Realising benefits has historically required agreement with Train Operating Companies and Franchising Bodies to change services provision, which can require negotiation for ongoing funding 
• The rail network is congested, and making local service changes can often have consequences outside of the local area 

Both devolution and rail reform carry the potential to unlock some of these bottlenecks by allowing MCAs to prioritise local funding towards rail, deliver longer term infrastructure investment programmes and to support the cost of providing services.  

What it will not do is provide additional funding in the round. The onus will be on MCAs to demonstrate value from their investment and ensure that their plans are affordable and deliverable. What will be critical will be to work within the opportunities created by rail reform whilst playing to rails strengths.  

What are the challenges and how to navigate them 

Securing punctual and affordable passenger services is the biggest single challenge facing the rail industry today. Setting aside local political aspirations for enhanced rail services, it is important to acknowledge that the industry is still facing a generational challenge from the UK Government to increase efficiency and reduce financial commitments. In some places authorities and stakeholders are still working to restore their pre-covid service levels, rather than seeking further enhancements. MCAs will also still have constrained funding, and while there may be scope to prioritise rail, doing so will mean a challenging decision given the competing calls for investment.  

A certain level of out-of-the-box thinking will be required to identify achievable investments, at least in the shorter term and adopting a mindset that focuses on interventions which are deliverable will help.  

For example, the rail industry has very limited spare infrastructure capacity to introduce or change service provision, and it is highly likely that fundamental frequency enhancements will trigger material additional infrastructure needs or trigger an increase in delays.  

Securing funding may mean tailoring interventions to available pots and focusing on non-industry funding sources such as City Region Sustainable Transport Settlements. Looking at off rail network interventions such as integration along with first and last mile access could also be fruitful. It is likewise important to make the most from new mobility modes including micromobility, and from regulatory changes such as bus franchising, to make sure networks are well integrated. Where services enhancements are genuinely needed this should focus on alignment with key government objectives, for example supporting economic and housing growth by providing improved to regional centres. 

What we always need to bear in mind in these financially constrained times is to focus on what is achievable, play to our strengths and work with what we’ve got.  

How can Steer help?  

Steer is uniquely well equipped to help local authorities with developing rail strategy and interventions. We blend together experience of detailed rail development expertise with DfT and Network Rail and a host of experience across vision-led planning, data analysis, new mobility solutions, scenario planning and a demonstrable track record of using these to support Local Transport Plan development.  We also have expertise in-house from colleagues with public sector experience developing and delivering strategies and plans, and who know what works and what doesn’t.  Our experience can be tailored to help you make the most of forthcoming devolution opportunities and the Local Transport Planning process to make get the most from the rail network.