Upcoming funding settlement to cover five year period from spring 2024

Network Rail鈥檚 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 拢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鈥檚 announcement, raise fears of the 鈥渞isk to the CP7 plans鈥� posed by 鈥渋nflationary pressures鈥�. 

harper

Transport secretary Mark Harper (right) visited HS2鈥檚 Long Itchington tunnel in Warwickshire recently with the railway鈥檚 chief executive Mark Thurston

The minutes said the board was 鈥渃oncerned about the significant risks [inflation] could present to the funding [from government]鈥�. 

The high-level output specification released by Harper yesterday emphasises the Department for Transport鈥檚 commitment to rail reforms and focus on 鈥渟upporting a safe, efficient and reliable railway for passengers and freight customers鈥�. 

It is for the independent regulator, the Office of Rail and Road, to consider how to achieve the government鈥檚 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 鈥� the planned successor body for Network Rail 鈥� would be responsible for commitments made for CP7. 

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