The Transport Secretary Rt Hon Heidi Alexander has set out her vision for a reformed railway that’s run by the public, for the public.

Speaking at the annual George Bradshaw Address, she spoke about the need to rewire the industry towards the public above all else, something that needs to start by going back to basics, and asking what the railway is for and who it should serve.

“For me, the railway has always been about more than timetables and trains,” she said. “More than simply getting people around, it’s a means to get on.

“The same railway that gave my dad his first job as an electrical apprentice now employs bright young apprentices in Newton Aycliffe, building the trains of tomorrow.

“The same railway that shaped my hometown of Swindon 200 years ago – with workers’ cottages and health centres built by the Great Western Railway later regenerated East London in the 1980s, thanks to the DLR and the Jubilee line. And that same railway is unlocking tens of thousands of new homes from Newcastle to Cambridge, transforming brownfield land near stations into vibrant communities.

“Across generations, rail has been a catalyst for social and economic change. And that impact stretches beyond this industry. It allows us to choose where we live. Choose who we spend time with. Choose what sorts of jobs we do. Choose how we raise our families. It gives us a sense of mastery over our own lives.

“That’s why I firmly believe when public interest is at the heart of the railway, we don’t just connect people with places, we make everyone’s lives a bit easier. We bring opportunity a bit closer and make the country a little bit fairer.”

The Transport Secretary said over the last decade the unspoken contract between the railway and the public “has been broken” and said the current Government inherited a railway that was “frankly, a mess”.

She spoke about the challenges, including the cost, highlighting that last year taxpayers spent £12 billion on the railways, the equivalent to £400 per household to just run the trains and maintain the track. She describes it as “unsustainable”.

“I say this not because I think rail subsidies are inherently a bad thing,” she said. “In fact, the opposite is true. If we agree that rail – like healthcare and education – is a lifeline service that drives cohesion and growth. If we agree with Rick Haythorthwaite, who at the very first Bradshaw address, said: ‘there is a price for not investing in our railway’, then we must show that rail makes a positive contribution.

“That requires us to confront some uncomfortable truths – starting with the passenger experience. Given we have some of the highest average fares in Europe, are passengers getting what they pay for? Do they easily engage with the railway, with clear expectations? Do they feel looked after when things go wrong?

“Or let’s take infrastructure. We spend a similar amount per year to Germany and France. And yet, because we have a smaller network, our infrastructure costs per kilometre outstrip our European neighbours.

“I believe there is genuine public support for a railway that delivers value for money for passengers and taxpayers. And I do believe we can change the national debate on rail – to stop it being an easy target for cuts, as we’ve seen over the past decade.”

The Transport Secretary proposed a new vision for the industry, one where its customers don’t just have a better experience, but where they become rail’s strongest advocates, where it becomes “boringly reliable” attracting more people, carrying more goods and earning more revenue.

“What needs to happen to make that a reality is experts, not politicians in the driving seat – taking responsibility and making long-term decisions, which put customers first,” she explained. “That is the modern, reformed railway Britain needs.”

She outlined the progress made since Labour came into power and also highlighted three areas on the journey to reform starting with Great British Railways (GBR), the directing mind which looks to end fragmentation.

“Caring about customers is one thing, but having the power to act in their interest, and their interest alone, is another,” she said. “So we will give GBR the tools it needs for the job.

“From a single profit and loss approach that drives value for money to a new simplified access rules that optimises capacity for passengers and freight. All told, the railway will start working for the public, rather than expecting the public to work around the railway.

“But let me reassure everyone, we are not returning to the centralisation of the past. GBR won’t be a Kafkaesque blob – a plaything of politicians who secretly want to run the railways. Instead, it will be agile, commercially focused and run by people who know the industry in their bones.

“More decisions will be taken closer to local communities and thanks to strengthened partnerships with mayors and devolved regions, we will integrate rail into local and regional transport plans.”

The MP for Swindon South added that there was no hiding place for failure with one integrated business plan setting the direction of the railway and GBR held to account for it by an independent GBR board, and second by the Office of Rail and Road which will provide advice to Government on its performance while also enforcing it compliance with its licence.

Moving onto the second area of reform, she said GBR will be obsessed with passengers and freight, with a statutory duty to promote the interests of both. From a passenger perspective, she says their experience will change beyond recognition.

“As a passenger, you will no longer navigate multiple companies for different parts of your journey,” she said. “Buying tickets in one place, checking timetables somewhere else and being pushed from pillar to post to get compensation if your train is delayed.

“You’ll now deal with one railway. One brand. One organisation in charge. With your entire experience starting and ending with 3 letters: GBR.

“And you’ll have a strong champion when things go wrong. The Passenger Watchdog will ensure the passenger is always front of mind when decisions are made. It will set tough consumer standards, with powers to investigate issues and demand improvements.

“We’re also dragging fares into the 21st Century. Because if we are to drive passenger growth, buying a ticket should be effortless. That’s why a new GBR online retailer will simplify ticketing, ensuring you get the right fare every time with no booking fees and ending the surreal situation where 14 different operator websites and apps all offer the same fare – or worse, different fares for the same journey.

“And we’ll continue to roll out Pay-As-You-Go to make train travel even easier. That includes a further 20 stations in the South East later this year, followed by 90 stations across the West Midlands and Manchester.”

In regards to rail freight, she has addressed concerns that the Railways Bill will lead to worse outcomes for the freight sector.

“Moving more goods on our railways makes both economic and environmental sense,” she said. “Yet to date, freight providers have had to find ways to work around a complex system not set up for them. We’re changing that. And I am reassured to see the 30 bi-mode GB Railfreight locomotives starting to be introduced – showing it’s not all doom and gloom.

“The growth of the freight sector will be written in to the DNA of GBR. It will ensure freight paths for future growth are in the timetables of the future. The GBR board will include a member with responsibility for freight, championing your interests from within.

“There will be more flexibility to lower charges for new services. And faster, more transparent decision making will give businesses the confidence to invest and grow. We have a bold ambition to increase freight by 75 per cent by 2050 and I’ll set out further targets over the coming months to help deliver that goal.”

The final area was around the railway culture and in “building one railway with one team, where each problem is everyone’s problem”.

“We’re already moving closer to this future,” she added. “Integrated leadership teams are now in place on South Eastern and South Western, and the Anglia region following soon. So, when problems arise anywhere in that part of the network, Jamie Burles, Lawrence Bowman and Steve White will be empowered to knock heads together to fix it.

“But this sense of collective ownership must apply everywhere, right down to the station floor. I want more decisions made closer to the passenger, where GBR staff are entrusted to act when they see something going wrong.

“At the heart of this new approach will be pride in service and trust in the people who deliver it.”

The Transport Secretary also set a clear expectation that GBR will be as much a champion of diversity inside the railway as it will be a driver of social mobility outside.

“That means flexible working opportunities that are attractive to all, including those who have long struggled to access the labour market,” she said. “That means ensuring we have the right skills in the right places.

“It means taking long-term investment decisions on workforce planning and training. And it means building diverse leadership teams, ensuring multiple perspectives to help us see around the corner and confront the challenges of tomorrow, today.

“Building a railway that reflects the society it serves is a personal mission of mine and it will be GBR’s too.”

Concluding her speech, she had this message for attendees at the George Bradshaw Address.

“The railway now has an opportunity to serve the public in a way it hasn’t been able to for the last 30 years,” she said. “The past 18 months show that we can change the railways.

“None of the progress so far would have happened without some brilliant people, many of whom are in this room. And I’m determined this change will not happen to you, but with you.

“Right now, you are helping design the future of GBR. You are shaping the long term rail strategy. You are working with my team as we steer the Railways Bill through parliament. And I need you to work relentlessly for better performance, revenue growth and cost reduction.

“Together, we can make GBR a world class public body. A driver of living standards and opportunity. A symbol of quality and high standards for its consumers. An employer of choice, open to every community. A boringly reliable railway but a railway of which we can all finally be proud.”

The Chartered Institution of Railway Operators (CIRO) hosted the George Bradshaw Address at One Great George Street, London, bringing together more than 200 senior leaders, policymakers and innovators from across the rail sector.

You can read the full speech here.