Introduction

This Guidance is issued under the Railways Act 1993. Section 4(5)(aa) of the Act requires the ORR, in exercising its functions (other than safety), to have regard to any general guidance given to it by the Scottish Ministers about railway services wholly or partly in Scotland or about other matters in regard to Scotland that relate to railways. This document provides that Guidance, revoking and replacing the guidance issued by the Scottish Ministers on 11 June 2018.

Our vision is for a sustainable, inclusive, safe and accessible transport system helping deliver a healthier, fairer and more prosperous Scotland for communities, businesses and visitors. This vision is underpinned by four interconnected priorities, that the transport system:

  • Reduces Inequalities
  • Takes Climate Action
  • Helps Deliver Inclusive Economic Growth
  • Improves our Health and Wellbeing.

At the heart of our strategic approach to transport is the recognition that we need to enable a step-change in behaviour through the provision of attractive, affordable, accessible and sustainable travel options. Rail is central to this with a focus on a safe, high performing and efficient railway.

Our priorities for the rail sector in Scotland are:

Safe, robust and reliable services capable not just of retaining existing passengers and freight but of attracting new custom, including from other modes of transport, responsive to passenger and commercial demands and providing valuable connections between cities and regions;

Optimum use of capacity and capability through the most effective use of the available rail capacity and resource to secure required services with high levels of performance and modernisation;

Meeting the “net cost” challenge for the network and delivering Value for Money through a transparent approach in determining and managing efficient costs to achieve Value for Money for the taxpayer, fare-payer and the rail freight customer, recognising their financial contribution to delivery of the service they require;

Effective integration through co-ordination and co-operation between rail operators and rail infrastructure management, and between rail and other transport modes;

Inclusive and sustainable economic growth through targeted investment to help reduce inequality and increase economic growth through the use of local products and labour, more efficient use of low carbon or net zero energy and contribution to the circular economy;

Achieving net zero and climate change adaptation and resilience by promoting the use of sustainable rail services for more passengers and freight customers and through delivery of adaptations in response to climate change, greater resilience and preparedness for severe weather events and responsible environmental stewardship.

Specifically in relation to freight, we want to see a competitive, sustainable rail freight sector playing an increasing role in Scotland’s economic growth by providing a safer, greener and more efficient way of transporting products and materials.

The railway in Scotland needs a strong, independent and assured regulator to help it to reach its full potential. Key to this, is the ability of the ORR to adapt its approach in order to meet the needs of rail users in Scotland and the policy requirements of the Scottish Government as primary specifier and funder, including where these may differ from other parts of the GB network. Therefore, in discharging its duties, the ORR should have full regard to Scottish Government strategies, policies and objectives either published or otherwise notified by the Scottish Government, with implications for rail, throughout Control Period 7 (CP7), from April 2024 to March 2029. This should include strategies and policies which are wider than specifically rail, such as the Scottish Government’s economic and environmental strategies.

The ORR published its Final Determination on 31 October 2023, wherein it translated the High Level Output Specification (HLOS) into reasonable requirements of Network Rail to achieve within the funding made available as advised in the Statement of Funds Available. We strongly encourage the ORR to use all powers available to it in ensuring that the Final Determination is delivered in full and to budget throughout CP7.

Our requirements of Network Rail are clearly laid out in the HLOS and will not be repeated here, with one important exception given its importance:

  • Scottish Ministers require that the outputs of the network will be maintained in such a manner as to enable ScotRail Trains Ltd. to meet a Public Performance Measure (PPM) target of 92.5% for every year of CP7.

Safety is paramount, and there is therefore a specific derogation from the 92.5% target for trains where delays are caused by the need for speed restrictions during periods of severe weather, or trains have been delayed in order to permit connections from other late running trains or ferries.

The 92.5% PPM target is therefore pragmatic and appropriate. We strongly encourage the ORR to bring all regulatory levers to bear to hold Network Rail to account for delivering its contribution to the 92.5% Scotland train performance measure, recognising the derogation mentioned above allows for certain events to be excluded from achievement of this target.