Expanded network proposed as part of government's 'strategic vision' for railways

Its 'strategic vision' for the future of rail also includes complementary reforms to the franchising system, and a commitment to expand the railway network where this would "unlock new housing or economic growth and offer good value for money".

Infrastructure law expert Jon Hart of Pinsent Masons, the law firm behind Out-Law.com, said that the package had the potential to "bring matters closer to vertical integration of the rail network than at any time since privatisation". However, it was not yet clear whether the proposals would be as "revolutionary" as the government claimed.

"Before being carried away by the prospect of a return to the 'glory days' of British Rail, it would be worth analysing whether the rail franchise model is going to see franchise companies being expected to take on direct responsibility and risks associated with the performance of rail infrastructure - or whether, as is perhaps more likely to be the case, franchisees will be contractually committed to take part in new management and governance structures with opposite numbers from Network Rail," he said. "If so, this is hardly revolutionary - but it is certainly a step in the right direction."

"In any event, this may be the start of some interesting changes down the line, not just in terms of changing the skillset of train operating companies, but in changing approaches of the various construction companies currently working on Network Rail frameworks and portfolio of projects," he said.

The current system dates back to privatisation under the 1993 Railways Act, which separated privately-run passenger services from publicly-owned rail infrastructure. Network Rail possesses the statutory licence which makes it responsible for the maintenance and renewal of physical railway infrastructure assets, while train operating companies (TOCs) bid for regional franchises giving them the right to operate services over those assets for a 10 or 15 year period.

The proposals set out in the strategy document build on the recent devolution of infrastructure management at the regional 'route' level, with Network Rail retaining a central 'system operator' role to provide coordination at the national level. Franchises, beginning with the East Coast Mainline in 2020, will be awarded as partnerships between the public sector and a private partner. These will be operated by a single management team under a single brand, and overseen by a single leader.

Some of the existing franchises will be broken up, and future contracts awarded around the creation of an "alliance" structure. The nature of each alliance will be "tailored to each area", but could include "new joint operational teams, short-term task forces to manage improvement, or longer-term contracts and agreements", according to the strategy document. Among the proposals included in the document are splitting up the Thameslink, Southern and Great Northern franchise when it comes up for re-tender in 2021, and consulting on a new West of England franchise.

The government has also committed to exploring opportunities to restore capacity lost in the 1960s and 1970s as a result of the Beeching and British Rail cuts, following on from its decision to reopen the railway line between Oxford and Cambridge. Proposals under discussion include suburban lines around Bristol, a freight route through Central Birmingham, and the lines between Okehampton and Exeter and Blyth and Ashington.

Proposals to re-open lines will be sought on a regional basis, but will need to demonstrate a "strong business case" if they are seeking government funding. Factors that the government has stated will be taken into account include whether the proposed route will "unlock significant housing or economic development regionally", provide strategic transport links and deliver value for money. The document does not state how much funding will be made available for new lines, or from where this funding will be sourced.

Hart said that there was an "important question" around funding for new rail schemes.

"There are potential shortfalls identified in the numbers for Network Rail's overall spending commitments for the next 'control period'," he said. "An important question is going to be how those gaps are going to be filled: by private investors, developers or other public sector stakeholders."

The strategy document also contains commitments to improving the passenger experience, including compensation for passengers when trains are more than 15 minutes late and the introduction of a 'rail ombudsman', and to take advantage of new technology to improve services. The government will seek to introduce 'digital rail' technologies across more of the country, with the potential to reduce crowding and improve train punctuality for passengers.