A model or a policy muddle? An evaluation of rail franchising in the UK

Abstract

Rail privatization led to a large increase in both costs and subsidy, and there have been substantial performance and regulatory problems with rail franchises. This article examines these problems in the context of recent developments, including the impact of the recession on train operators and the plan to increase the proportion of rail funding provided by passenger fares from 50% to 75%. Franchising is, in the language of the House of Commons Transport Select Committee, a policy muddle. A way forward would be to bring franchises into the public sector as they expire or as train operators run into difficulties.

Additional information

Notes on contributors

Robert Jupe

Robert Jupe is a Reader in Accounting at Kent Business School, University of Kent.