The challenge
The government needed a long-term rolling stock strategy to give industry certainty, drive modern standards of comfort and accessibility, and build a pipeline of orders that strengthens UK manufacturing. No such strategy had existed for 30 years. Alongside this, the balance sheet treatment of rolling stock leases posed a significant risk, with the potential for material impact on the whole of government accounts. The strategy also had to sit alongside more than £3.5 billion of live procurements across four operators, covering over 1,000 new vehicles, adding complexity to an already demanding reform agenda.
How we helped
We are embedded in the DfT team developing the long-term strategy, bringing sector and commercial expertise to this first-of-its-kind exercise. A central focus has been the balance sheet treatment of rolling stock leases, an issue with significant tax and accounting implications. We drew on specialist accounting and tax teams from across the firm to help the Department work through the options. In parallel, our teams have advised on the £3.5 billion rolling stock procurement programme across four operators, applying lessons from each to strengthen delivery on the next.
The results
Our work is helping the DfT navigate one of the most technically complex accounting challenges in the reform programme, protecting the integrity of the whole of government accounts. Once published, the strategy will be a foundation stone for Great British Railways, guiding how fleets are procured, financed, maintained and renewed for years to come. Meanwhile, live procurements across four operators are progressing, delivering over 1,000 new vehicles that will directly improve passenger comfort and accessibility.
About our team
Our complex projects and transactions team advises on some of the most technically and commercially complex challenges in the rail sector. We bring deep experience of rolling stock financing, procurement and accounting treatment, drawing on specialist tax and accounting expertise from across the firm. Our team has supported major fleet procurements including ScotRail, SouthEastern, TransPennine Express and Northern, and works closely with the Department for Transport on the strategy shaping the future of the UK fleet.
