As the House of Lords begins its scrutiny of the Railways Bill, leading trade associations and transport organisations have jointly written to the Treasury, calling for the Government to improve the Bill by making amendments to safeguard future rail infrastructure investment and growth across the economy.

The organisations, including the Association for Consultancy and Engineering (ACE), together represent thousands of businesses and millions of employees. They are calling for changes to two parts of the Railways Bill, which as things stand, could weaken business confidence and deter investment.

Schedule 2: As drafted, the Bill 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. 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.

Clause 72: The Railways Bill also 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.

Ben Brittain, Director of Public Affairs 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.”

Notes to editors

Click here to read the letter in full.

Rail Minister Lord Hendy is responsible for taking the Bill through the House of Lords

The Treasury plays a key role in shaping the financial framework for Great British Railways, including around five-year Funding Periods and the rules governing private investment in infrastructure.

Signatories’ organisations to the letter are:

• 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