Row over lockdown costs delays biggest rail reforms in 25 years

Boris Johnson and Rishi Sunak will hold crunch talks over the future of Britain’s railways next week after delaying publication of the biggest review of the train network since privatisation.

Plans to publish a rail blueprint before May’s local elections have been shelved with the Treasury at loggerheads with the Department for Transport over how to fund sweeping reforms.

The delay comes as the state-owned lifeboat that runs failed rail lines warned it was “not sufficiently well equipped to manage any further franchise operations should this be required”.

A “root and branch” review, overseen by Royal Mail chairman Keith Williams and commissioned by former Transport Secretary Chris Grayling in September 2018, will not be published until May at the earliest, according to industry sources.

Mr Williams was hired following a tumultuous period on the railways marred by bungled timetable changes, hundreds of daily cancellations, strikes and plunging commuter sentiment.

His proposals, which were close to being published as the pandemic struck a year ago, include an end to franchising, an overhaul of fares, and greater state involvement in the railways through a body dubbed the “Fat Controller” to oversee operations on a day-to-day basis.

The changes have met resistance from the Treasury, with officials fearful that they will cost taxpayers billions of pounds to implement. They would also mark a reversal of policies under  Labour and Conservative governments to shift the burden of funding the railways from the taxpayer to passengers.

Treasury officials are also mindful that the rail industry has received the largest bailout of the pandemic with taxpayers forking out more than £10bn to keep services running over the last 12 months.

Chris Heaton-Harris, the rail minister, said on December 9 that the Williams review would be published “within the next six weeks”.

Industry sources told The Telegraph in late January that the review had been further delayed until March. Mr Heaton-Harris is believed to have told rail bosses it would be out “definitely before Easter”.

Grant Shapps said in February that he was “very keen” to publish the Williams review.