Reforming rail through DfT’s public ownership programme

DfT faced the complex task of implementing a key government policy: transitioning rail services from private operators to public ownership. This required balancing value for money, ensuring service continuity, and creating a new operating model that incentivised performance without a profit motive. Two critical challenges emerged: designing a fit-for-purpose services agreement to foster collaboration and accountability, and managing the commercial exit of private operators while safeguarding taxpayer value. Our long-standing relationship with DfT and deep understanding of rail reform positioned us to identify these needs early and shape solutions that addressed both operational and strategic priorities.

​​​We embedded our experts within DfT’s team, combining sector knowledge with insights from other industries to design innovative services agreements that encourage collaboration between DfT, the public sector owning-group, ‘DFT Operator’, and its passenger-facing operating subsidiaries. We proactively advised on managing commercial risks and structuring agreements to drive high-quality passenger services. We facilitated new ways of working between the DfT, DFT Operator, and other operators to ensure alignment and shared accountability. We drew lessons from our previous experience supporting transfer of Scotland’s rail services to public operation but adapted solutions to DFT’s specific challenges. This achieved immediate goals and laid the foundation for long-term success in rail reform.

The first three transfers of services from private operators were delivered on schedule. More than 50% of rail services are now operated by public-sector entities. This is a major milestone in the Government’s public ownership programme, and the remainder are set to follow by 2027. DfT now has a more collaborative, accountable operating model that prioritises passenger experience and value for money. We’ve also helped shape a framework that positions the rail sector for future reform and resilience. This transformation demonstrates how strategic advice and a trusting and collaborative relationship can deliver lasting impact for both the Government and service users.