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The Office of Rail and Road has warned the Treasury that a lack of clear policy is discouraging railway investment from the private sector, even though there is ‘strong appetite’ for it.

Private sector passenger operators with DfT contracts are now being progressively renationalised, and the latest to be returned to public ownership was c2c last month, with Greater Anglia set to follow in October and West Midlands Trains in February 2026.

But the ORR has been reviewing its Rail Network Investment Framework, which sets out how third parties like private investors, local authorities and developers can work with Network Rail and the ORR to help with projects ranging from smaller improvements to larger schemes such as new stations or depots.

The ORR has been carrying out a ‘deep dive review‘ of its Framework, which was last updated just over three years ago, and has consulted with various organisations including the Railway Industry Association.

It has discovered that the Framework is not well known and that investment is also being discouraged by a ‘lack of clear policy direction on where private capital is actively encouraged’, as well as ‘limited visibility’ of a long term plan or pipeline, the further lack of an agreed and established commercial model for rail investment, and a complex mechanism which involves planning, approvals and working with partners.

The ORR has now passed these findings on to the Treasury, and the ORR will be carrying out its own review on how investment opportunities can be made clearer and so easier for third parties to explore.

An updated version of the Framework is due to be published in November.

Readers’ comments

The nationalised BR was for ever short of investment cash, having to rely on HM Treasury. Whatever mix of public and private sector we might end up with, at least private sector railfreight and intercity operations on a wider, more generous investment basis could make a real difference for the better.

David C. Smith, Bletchley

[With the minor exception of open access, there will be no private sector intercity services.--Ed.]

BR operated in an era when railways were yesterday’s transport solution in the then government’s view, so why do people keep comparing that public ownership model with today’s nationalised railway ambitions when railways are now considered as extremely important for this country’s future?

 Peter Evans, Stroud

I wasn't comparing like with like, but currently, our government is in a bit of a lack of funds crisis and would probably be unable to find much investment capital for all the promising new possibilities on the railway.

David C. Smith, Bletchley