FirstGroup, one of the UK’s leading rail operators, has voiced support for the Government’s rail reform ambitions but warned that passenger interests must be safeguarded as the Great British Railways (GBR) structure takes shape.
In its official response to the consultation ahead of the forthcoming Railways Bill, FirstGroup welcomed the aim of putting passengers at the heart of the rail sector’s future. However, it also raised concerns about the risks posed by a centralised GBR model, including reduced competition and diminished customer choice.
Keeping competition on track
FirstGroup cautioned against creating a monopolistic system under GBR, arguing that meaningful private sector involvement is key to maintaining service quality and choice for passengers. It pointed to successful open access operations—such as Lumo and Hull Trains—that have enhanced connectivity and provided more affordable options, particularly in under-served regions.
“Across Europe, private and public operators co-exist to the benefit of passengers,” said Steve Montgomery, Managing Director of First Rail. “This healthy competition supports the wider rail market and is vital if GBR is to offer best value for taxpayers and passengers alike.”
Independent oversight essential
To protect passenger rights, FirstGroup is calling for a stronger, independent regulator with real power to hold GBR to account. It recommends that the Office of Rail and Road (ORR) retain responsibility for setting access policy and regulating charges to ensure fairness for all operators. The Group also supports extending the Rail Ombudsman’s remit to GBR, ensuring all passengers receive the same standard of service and recourse, regardless of the provider.
FirstGroup believes there should be a statutory obligation for GBR to grow passenger numbers and deliver service improvements. It has proposed a framework where the regulator can intervene if standards are not met.
Enabling private sector investment
The Group has also emphasised the importance of long-term financial planning to unlock private investment. It advocates for a five-year funding settlement for GBR and urges collaboration with existing operators to implement improvements without delay.
“The rail industry cannot afford to wait for GBR to be fully operational before making much-needed changes,” Montgomery added. “We need action now—investment, innovation, and reforms that work for passengers and communities across the country.”
FirstGroup supports devolution
In line with its overall message, FirstGroup expressed strong support for devolved decision-making in transport. It argues that local authorities are well placed to understand regional transport needs and should continue to be supported by private operators under the new rail structure.
Key Recommendations from FirstGroup’s Submission:
- Empower an independent regulator to oversee GBR and defend passenger interests.
- Ensure open access services are protected and allowed to expand.
- Retain a single, independent Rail Ombudsman service, covering GBR and all other operators equally.
- Enable private sector investment with financial certainty and long-term planning.
- Support devolved bodies in shaping regional transport solutions.
As the Government prepares to legislate for the creation of Great British Railways, FirstGroup’s message is clear: rail reform must be delivered with transparency, competition, and passenger needs front and centre.
First Rail currently runs three Government-contracted operations, namely, Great Western Railway, South Western Railway and West Coast Partnership. First Rail also runs two successful open access operators, Hull Trains and Lumo and operates London Trams and the London Cable Car on behalf of Transport for London and Heathrow Express on behalf of Heathrow Airport.
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