As the House of Lords begins its scrutiny of the Railways Bill, industry leaders have urged the Treasury to amend the legislation to safeguard future rail investment and economic growth across the UK.

The group of organisations, which includes the Association for Consultancy and Engineering (ACE), the Railway Industry Association (RIA), the Civil Engineering Contractors Association (CECA) and the CBI, have written to chancellor Rachel Reeves calling for changes to two parts of the Bill.

While welcoming rail investment across major projects including HS2, East West Rail and the Transpennine Route Upgrade and plans to bring track and train together under Great British Railways (GBR), they say as the Railways Bill currently stands, it could weaken business confidence and deter investment.

They say Schedule 2 of the Bill, as drafted, currently allows a future transport secretary to effectively vary and reduce “five-year” infrastructure funding settlements at any time, weakening business confidence and jeopardising future investment.

In their letter to the Treasury, the group of industry leaders say stable, visible, long-term funding is essential to control costs, support timely delivery, and encourage innovation and investment, and for the last 35 years has been a long-established way of funding infrastructure, maintenance and renewals.

The also say Clause 72, as currently drafted, creates new powers for government to change legislation in future in areas that would affect investments in and around the railway, including depots, freight terminals, port and airport terminals and devolved rail networks.

 The coalition is therefore calling for safeguards to help maintain investment certainty, attract future private funding and support the Government's growth agenda.

The letter makes the case for Great British Railways to be established to attract additional investment from third-party partners to support an effective and resilient transport system that underpins economic growth.

The letter has been sent to government by:

• Railway Industry Association (RIA)
• Association for Consultancy and Engineering (ACE)
• British Chambers of Commerce (BCC)
• CBI
• Civil Engineering Contractors Association (CECA)
• Campaign for Better Transport
• Global Infrastructure Investor Association (GIIA)
• Heathrow Southern Rail
• Intelligent Transport Systems UK (ITS UK)
• Logistics UK
• UK Major Ports Group

Rail Minister Lord Hendy is responsible for taking the Bill through the House of Lords. The Bill moves to its second reading in the Lords on 7 July.

Ben Brittain, director of public afairs at the Association for Consultancy and Engineering (ACE), said: “Our sector plans, hiring and investment around long-term funding settlements. If ministers can rip those up at will, that certainty goes  and confidence goes with it. You can't ask the supply chain to invest for the long term while reserving the right to move the goalposts mid-match.

“The Railways Bill is the right idea in need of ammending. A handful of sensible amendments would give industry the stability to deliver better and cheaper. The Lords should take that opportunity.”

Railway Industry Association (RIA) chief executive, Darren Caplan, added: “The Railways Bill represents a once-in-a-generation opportunity to create a modern railway that supports growth, attracts investment and delivers value for taxpayers. So whilst we and the rail supply sector support much of what is in the Railways Bill, the changes we are proposing are targeted, practical and will help save public money.

“As the Bill enters the Second Reading in the House of Lords, there is an opportunity to ensure this enduring legislation is improved and provides the long-term certainty investors need and protects confidence across businesses. By making a small number of targeted amendments, the Bill can be strengthened to boost greater private investment and help ensure the UK railway continues to deliver economic benefits for passengers, businesses and taxpayers for years to come.”

Click here to read the letter in full.