Meeting of the Parliament 09 September 2025
We already fund Network Rail’s responsibilities with £1.5 billion as part of control period 7. That is already part of our budget. The issue with rail reform is that we have to ensure that we have control not only of the funding but of the decision making. My concern about the rail reform that is being discussed at the UK level is that that vertical integration might preclude the governance arrangements that we already have. I have therefore made it clear in meetings with the UK Government that Scottish ministers will not accept any diminution of our existing devolved powers over rail, and that strong governance, accountability and assurance measures must be in place for the areas in which we set strategy and that we fund and specify. That is why a collective stance from the Parliament stating that is important at this time.
I move on to the economy. We know that rail benefits business and that growth through rail freight and the transport of goods by rail is a key lever in driving down transport emissions. The Government’s role is to put policies in place that facilitate modal shift, and we have shown genuine leadership with a tangible focus in that area through our first-of-a-kind freight growth targets, which incentivise Network Rail to collaborate with the industry to grow rail freight. However, freight works on a commercial basis, so there is a key role for the industry to play.
In these times of constrained budgets, I am proud of our investment in projects that support rail freight and pleased to have secured a rail freight grant in this year’s budget. As we work with the rail industry to plan the next suite of investment projects, we will continue to ensure that the benefit for freight is maximised.