Guidance

English rail devolution applications

Published 12 December 2025

Applies to England

1. Introduction and background

The English Devolution White Paper confirmed the government’s commitment to allowing mayoral strategic authorities (MSAs) to apply for full statutory and financial responsibility for local rail services, infrastructure and/or control of stations (full devolution), where this accelerates improvements for passengers and supports a more integrated network.

It also committed to publishing guidance on a clear and transparent process for the submission and assessment of these applications.

Where proposals involve services that extend beyond the boundaries of a mayoral strategic authority (MSA), these will be carefully assessed from the outset. Changes within an MSA can have significant operational and financial impacts outside its area, affecting network integrity, timetabling, and passenger experience.

Applications must therefore demonstrate early engagement with neighbouring authorities and robust plans to manage these cross-boundary implications.

MSAs can seek full devolution of rail responsibilities under existing legislation such as the Railways Act 1993. This guidance therefore seeks to provides clarity on the process, criteria and expectations that will inform the Secretary of State for Transport’s decision-making on any applications received.

Reflecting that the establishment of GBR is ongoing, this guidance is subject to revision and may be updated to reflect the following:

• relevant changes to existing legislation made by the Railways Bill
• changes in policy approach by the Secretary of State
• the operational commencement of Great British Railways (GBR)
• developments to GBR’s access and use policy, and the long-term rail strategy
• any changes made by HM Treasury to the Green Book and the accompanying business case guides - due at the start of 2026

While this guidance concerns applications for the full devolution of English rail infrastructure, services and station control, it should be noted the government’s primary offer and preferred approach is delivery through GBR mayoral partnerships. 

1.1 Distinctions between rail infrastructure, services, and station control

It is important to distinguish between the following.

Infrastructure

Refers to the physical assets such as track, signalling and depots. Devolution of infrastructure requires specific legal and operational arrangements, often under the Transport and Works Act 1992.

Services

The contracting of and operation of passenger rail services, including timetabling, rolling stock, and customer experience.

Devolution of services requires exemption from designation under the Railways Act 1993, proposed to be updated under the Railways Bill introduced to Parliament in November 2025.

Station control

Management of station facilities, staffing, and retail. This may be devolved independently or alongside services and/or infrastructure, depending on local priorities and agreements.

1.2 Guidance objectives

This guidance:

• details the process the Secretary of State for Transport will follow prior to any decision to exercise powers under Section 24 of the Railways Act 1993 (which is subject to amendment via the Railways Bill)
• applies to applications submitted from 12 December 2025
• supports MSAs in developing robust business cases
• clarifies the requirements, conditions and assessment criteria that will be considered when assessing applications for full rail devolution
• ensures that any proposals for services operating beyond MSA boundaries include clear mechanisms for coordination and mitigation of impacts on adjacent areas and the national network
• ensures consistency in how the department (with input from GBR, once established) will handle applications

1.3 Decision-making framework

Key principle – cross-boundary services require exceptional care.

Any changes to services within an MSA can affect operations outside its area. Applications must address these impacts upfront and provide evidence of engagement with all affected stakeholders.

Applications for full rail devolution in England will be considered by the Secretary of State on a case-by-case basis, informed by:

• the anticipated passenger impacts from within the MSA and their adjacent areas
• financial, commercial, operational and strategic impacts
• advice from Department for Transport Operator (DfTO), GBR (when established) and the ORR
• cross-government perspectives, including local growth plans, housing considerations and the government’s broader devolution ambitions

2. Devolution and the wider rail picture

Devolution is a positive feature of the railway landscape in England, with significant responsibilities already fully devolved to the mayors of London and the Liverpool City Region. These arrangements remain in place.

Examples of fully devolved services

These services are run by MSAs but operate on Network Rail infrastructure and require close coordination between multiple stakeholders to ensure seamless delivery. This will continue under GBR unless infrastructure itself is devolved through future agreements.

• Merseyrail Electrics
• London Overground
• Elizabeth Line

Merseyrail Electrics arrangements are supported by a special rail grant funded by DfT.

‘Full devolution’ refers to rail services that have been/are to be formally exempted from designation under the Railways Act 1993 and transferred to an MSA by the Secretary of State for Transport through secondary legislation. These services are distinct from:

• public sector services operated directly by the Department for Transport Operator (DfTO)
• private sector services delivered under national rail contracts

It is anticipated that the GBR mayoral partnerships framework will offer a range of options for MSAs to exercise their statutory roles in future partnership with GBR as the publicly owned and accountable integrated railway delivery body, with the depth of partnerships being flexible over time, according to local priorities.

While partnerships will introduce mechanisms for local influence, collaborative working and local commissioning, services would be delivered by (and remain under the full statutory and financial control of) GBR. As such, mayoral partnerships are distinct from full devolution.

3. Looking to the future: GBR mayoral partnerships

Through the Railways Bill and the establishment of Great British Railways (GBR), the government is taking steps to implement a statutory role for all mayoral strategic authorities (MSAs) in the governance, management, planning and development of the rail network.

This brings decision-making closer to communities, whilst recognising the need to balance the competing priorities of a wide range of services such as local, commuter, regional, national, international, high-speed and freight.

The government continues to work closely with MSAs to help shape possible future arrangements with GBR, both within and outside of legislation.

It is anticipated that GBR mayoral partnerships will represent the primary offer to mayoral strategic authorities (MSAs) and mark a significant step forward in how the rail industry collaborates with local areas. These partnerships are designed to better reflect community needs, providing meaningful opportunities for local influence over rail services.

GBR mayoral partnerships will give MSAs the opportunity to commission their existing and additional local rail services, a process known as local commissioning. This will enable MSAs to work with GBR to specify and fund local rail outcomes, giving them a direct role in shaping GBR’s activities.

While MSAs will assume a degree of revenue risk, they will avoid the full financial and legal exposure associated with full devolution. In practice, MSAs could act as the commissioning body for a group of existing local services within their area, which would continue to be operated by GBR.

This model has been designed to strengthen GBR’s accountability while preserving the benefits of scale and avoiding the risk of fragmentation, inefficiencies and access challenges that could arise with full devolution.

GBR will retain overarching responsibility for delivering rail services and infrastructure but will work in close collaboration with MSAs to enable local input within an integrated railway system.

The details of GBR’s partnerships with MSAs will be governed by bespoke agreements established outside legislation. This approach allows for:

• greater flexibility in tailoring arrangements to local priorities
• a more responsive and adaptive model of collaboration between national and local rail stakeholders

See the delivering local partnerships on England’s railways advice guide for more information.

4. Eligibility and scope

Whilst  the Railways Act 1993 does not prevent mayoral strategic authorities (MSAs) from seeking full devolution of rail responsibilities, it is acknowledged that this is a significant step requiring a strategic authority to develop expertise and staffing capacity to manage these responsibilities and take on the financial risk.

Applications must demonstrate robust management capability as a precondition for approval, including evidence of experienced leadership, governance structures and operational expertise to manage complex rail services or infrastructure.

The Secretary of State will not approve proposals where management competence is unclear or insufficient.

An MSA must have been designated as established to be eligible to apply for full statutory and financial responsibility for its local rail services and/or infrastructure.

The assessment criteria for designation as an established MSA will be set out in primary legislation - see section 2.2.4 of the Devolution White Paper.

Applications for English rail devolution may cover all 3 rail elements (services, infrastructure and/or control of stations) for which the MSA is seeking full devolution within a single business case. In line with the commitment outlined in the English Devolution White paper, the government will consider applications for the control of stations from any MSA.

Proposals related to land disposal and freight are out of scope and will not be considered.

English rail devolution is a Department for Transport (DfT)-led process, and therefore applications for the devolution of rail services, infrastructure and station control should be submitted directly to DfT. 

Applications for English rail devolution are separate from, but will run alongside, the mayoral right-to-request process. The latter is a cross-government process that allows established MSAs to formally seek new powers, funding, or partnership arrangements (in areas aside from rail) from the government. The government will respond to all applications within 6 months.

Decisions on rail devolution will be made by the Secretary of State for Transport, and MSAs are encouraged to engage informally with the government, ahead of submitting any proposals. Whilst applications for rail devolution proposed by MSAs will receive a formal response within the 6-month timeframe, there is no obligation for MSAs to register their rail devolution proposals through the mayoral right to request process.

5. Applications, approvals and the implementation process

Applications for full rail devolution should follow a single, streamlined process that applies both before and after the operational commencement of Great British Railways (GBR). This ensures consistency and clarity for all MSAs regardless of timing.

5.1 Step 1: Early engagement

Before submitting a formal application, mayoral strategic authorities (MSAs) should engage with

• the Department for Transport (DfT)
• all relevant industry partners, including Department for Transport Operator (DfTO), and Network Rail (NR)
• GBR (once established)
• the Office of Rail and Road (ORR)
• all neighbouring local authorities or MSAs potentially effected by the devolution proposal

This engagement helps ensure proposals are realistic, aligned with national rail policy and address operational and safety obligations.

Applications should include a summary of engagement undertaken and evidence of support or concerns raised. Where neighbouring authorities or MSAs oppose a proposal, the Secretary of State will act as the final arbiter. Applications must outline how issues of concern will be managed, including escalation routes and mitigation plans.

5.2 Step 2: Initial application

MSAs should submit a strategic outline business case (SOBC) to DfT, setting out the rationale for devolution, intended outcomes, initial assessment of impacts and their ability to take on additional devolved responsibilities. In line with the MHCLG-led mayoral right to request process, DfT will respond within 6 months of receiving an application.

DfT, with input (if received) from other relevant bodies, including Department for Transport Operator (DfTO), Network Rail (NR), GBR (once established), and the Office of Rail and Road (ORR) will review the SOBC and decide if the proposal warrants further consideration, and if so, issue an agreement in principle (AiP) and agree a memorandum of understanding (MoU) to define next steps.

5.3 Step 3: Full business case submission

MSAs then develop and submit a comprehensive business case to DfT fully detailing their devolution proposals. The business case must follow HM Treasury’s 5-case model (as updated from time to time) and include:

• implementation and transition planning – to ensure smooth migration and minimal disruption
• data sharing and interoperability – for seamless information exchange across systems
• governance and accountability arrangements
• financial viability, sustainability and risk management
• ⁠alignment with the local growth plan
• operational and accessibility impacts, for maintaining service continuity and inclusivity
• compliance with accessible travel requirements and the stations code of practice
• engagement plans with passenger groups and protected communities
• industry collaboration, working with Network Rail and train operators ahead of GBR operations
• integration with local transport strategies and active travel initiatives
• ⁠whole-journey ticketing and workforce planning – integrated travel solutions and managing resource transitions effectively
• safety, environmental, and sustainability considerations
• further assessment of organisational competent client capability

Business case development should be collaborative, involving the MSA, government departments, the ORR, Network Rail, and any relevant train operating companies. This could be achieved through a working group and MoU on working arrangements.

See Accessible railway stations: design standards.

5.4 Step 4: Assessment and decision-making

DfT, with input (if received) from other relevant bodies, including Department for Transport Operator (DfTO), Network Rail (NR), GBR (once established), and the Office of Rail and Road (ORR) will assess the business case against published criteria, including:

• passenger benefits
• value for money
• impact on the national network
• alignment with equality and accessibility standards

The Secretary of State for Transport will then decide as to whether to approve the application, subject to successful completion (within a reasonable timeframe) of necessary steps to devolve the relevant rail passenger services, infrastructure and/or stations, and DfT will inform the MSA of the decision.

5.5 Step 5: Implementation and transfer

If approved, DfT will agree the timing and arrangements for transfer, including any staff transitions and preparation of secondary legislation (such as exemption orders).

MSAs must ensure they hold the necessary licences, safety certifications, and access agreements before assuming responsibility.

Read ORR guidance on starting mainline rail operations.

6. Business cases

Applications should be supported by a comprehensive business case structured in accordance with the HM Treasury five case model, as outlined in the Green Book guidance.

MSAs should apply the model as set out in the most up to date edition of the Green Book guidance as at the date of their application. Proposals should also incorporate place-based analysis where relevant, to reflect local context and priorities.

Further details can be found in TAG unit A4-3 place-based analysis.

Below are the key elements that should be addressed in addition to standard business case components.

6.1 Strategic case

MSAs need to clearly articulate the strategic rationale for the proposal, including the case for change and the intended outcomes.

This includes demonstrating:

• how opportunities for delivery in partnership with Great British Railways (GBR) (once established) have been fully explored
• why existing arrangements have not met the MSAs rail ambitions, and therefore why further devolution is considered necessary
• how the application balances the benefits to passengers in the local area with the impacts to the wider rail network

Applications must explicitly assess impacts beyond the mayoral boundary. Few services operate entirely within a single MSA, so proposals must demonstrate how they will maintain network integrity and avoid adverse effects on other regions, freight, and national timetabling.

6.2 Financial case

MSAs need to set out the financial implications of the proposal, including:

• transitional costs, such as branding, rolling stock, and other implementation costs (for example, separation of services from existing contract)
• ongoing impacts on net rail subsidy, including any payments to or from GBR for service operation

The application needs to provide evidence of:

• financial capability to deliver the proposal, including affordability and ability to secure funding sources
• consideration of financial risk, mitigations and future revenue forecasts
• consideration of how future cost increases on the MSA would be managed

6.3 Economic case

MSAs are asked to demonstrate how the application represents value for money for the taxpayer.

The application needs to identify and quantify the benefits and disbenefits to passengers both within the local area and beyond it, and to other stakeholders.  

These should be related to transitional costs and ongoing subsidy impacts, in the case of an additional net subsidy proposal, answering:

• what is the value for money of any cost investment?
• to what extent could these benefits be achieved without further devolution?

Include robust analysis using recognised methodologies, in line with the most up to date published editions of:

• HM Treasury’s Green Book
• DfT’s transport analysis guidance (TAG)

6.4 Management case

MSAs are asked to outline how the proposal will be delivered and managed effectively, including for example:

• working arrangements with GBR (once established) and other relevant stakeholders to maintain a coherent national railway network for all passengers and users - this should include details on wider operational issues such as existing protocols for diversions during emergencies or engineering works
• compliance with all relevant industry standards and regulations
• addressing operational considerations such as safety, rolling stock, freight, branding, stabling, depots and maintenance
• how the MSA will work within the stations code of practice and accessible travel requirements, demonstrating an awareness of responsibilities and legal obligations to ensure a consistent and joined up experience for passengers across the network
• GBR’s assessment of the impact on its ability to act as the directing mind and operate services, including performance and efficiency implications

Where possible, the management case should be supported with evidence of the MSAs track record in relevant direct management and delivery of public transport (rail, light rail or bus) and competent client capacity.

Competent management is an absolute requirement. MSAs must provide clear evidence of their ability to manage operational complexity, safety, and financial risk effectively.

See Accessible railway stations: design standards.

6.5 Commercial case

The MSA needs to demonstrate the commercial viability of the proposal, and detail procurement plans to ensure value for money. This could include leasing or acquisition of rolling stock, delivery of branding and other service changes, staffing and ticketing.

7. Secretary of State assessment

When assessing applications, the Secretary of State for Transport will consider a range of factors before deciding as to whether to progress the application. The Secretary of State will want to ensure any proposals taken forward:

• align with national policy objectives
• deliver value for money
• maintain the integrity of the national rail network

As part of the assessment, the Secretary of State will consider the following aspects of the application including, but not limited to the following.

7.1 Direct benefits of the proposal 

An evaluation of the tangible improvements for passengers. This could include for example, improved service quality, increased capacity, greater reliability, and better accessibility.

7.2 Alignment with local policy and national objectives

Local priorities – for example, how the proposal supports new housing, employment growth, improved connectivity, increased social inclusion and other priorities as detailed in the MSAs local growth plan. The government acknowledges the value of local insight and the vital role of MSAs in shaping and driving meaningful change.

Devolution commitments – consistency with the government’s broader devolution agenda.

National rail objectives – for example, how the proposal will improve services for passengers, make the railway more accessible and inclusive, and align with the Long-Term Rail Strategy or Integrated National Transport Strategy.

Broader national objectives – for example, how the proposal contributes to economic growth, decarbonisation and creating places that people are proud to live in?

7.3 Local and national impacts

Benefits and disbenefits - an assessment of the proposal’s impact on both the devolved area and the wider national network. This should include, but is not limited to:  

• the scale of overall impacts on the area and the rest of the country
• the local benefits that are being traded off against the detrimental impacts on other parts of the country, and on wider supply chains and freight operations for example
• analysis of democratic deficit - consideration of governance implications, particularly where proposals are for devolution of services that extend beyond the boundaries of the MSA

Applications should include a summary of the engagement that has been undertaken with (and the views of) all the local authorities and passenger groups where the relevant services, infrastructure and/or stations are located.

7.4 Impact on net rail subsidy

Analysis of changes to the ongoing net subsidy or premium resulting from the proposal, including financial flows between Great British Railways (GBR) (once established) and the MSA.

For example, will the proposal increase or decrease government net subsidy for rail services, and will it abstract revenue from GBR (or other government contracted operators in the interim)? Could the devolved services significantly impact passenger numbers of non-devolved operators and lead to increased subsidies?

7.5 Transitional funding implications

Identification and extent of one-off costs associated with the transfer of services, including branding, rolling stock, staffing costs and operational setup, and how these costs are proposed to be met.

7.6 Operational impacts on GBR (once established) and the national network

Assessment of how the proposal affects GBR’s ability to act as a directing mind, operating the rail network effectively, coordinating services and infrastructure nationally, and delivering on commitments to freight and other strategic priorities.

For example, what is the complexity and usage intensity of the services / assets proposed for devolution, and how might the proposal impact GBR’s ability to timetable services and manage access to and through that part of the network?

7.7 Capability 

Evidence of operational capability to deliver the proposal and the capacity to take on the associated financial risk, demonstrating an awareness of responsibilities and legal obligations to ensure a consistent and joined up experience for passengers across the network.

The MSA should demonstrate, through a proven track record or clear plan, that it has the delivery and financial capabilities required to take on full statutory and financial responsibilities for the services / assets in question.

7.8 Illustrative approval criteria

We have included an illustrative example to provide more clarity to MSAs on how the factors are considered together. Applications do not have to meet all the illustrative criteria to be approved and are subject to the overall balance of benefits and risks.

The Secretary of State is more likely to approve proposals that combine several positive factors and outcomes, for example, proposals that:

• are operationally self-contained, with limited interaction with other passenger services, freight or infrastructure
• are focused on low-intensity assets
• if relating to assets/services operating outside the MSA’s boundaries, clearly set out appropriate mechanisms for managing this ‘democratic deficit’, coordination and/or consultation with neighbouring local authorities, and the extent to which proposals are supported by the local authorities affected
• demonstrate defined benefits compared to the counterfactual (for example, services operated by GBR) and alternative delivery models (for example, partnerships with local MSA oversight)
• minimise transition costs and/or offer high value for money for such expenditure, or are entirely/significantly funded by local contribution
• have a neutral or positive impact on net rail subsidy levels, with a high degree of assurance on revenue forecasts
• include all required documentation, agreements, and assurances as part of the business case

8. Supporting legislation

English rail devolution is underpinned by a legislative framework that enables MSAs to assume responsibilities within the rail sector under any agreed devolution proposal.

This legislative framework consists of the following and enables MSAs to develop proposals aligned with national rail reform objectives.

Legislation	Description
- Railways Act 1993 (Section 24)	Provides for designation whereby the Secretary of State for Transport, Scottish Ministers or Welsh Ministers set out the rail passenger services that they consider should be provided. Section 24 enables passenger services to be exempted from that designation, such that another body may take on responsibility for those services. This section will be updated by the Railways Bill (introduced to Parliament November 2025). Section 51 of the Railways Act 2005 allows SoS to seek advice from ORR.
- Transport Act 1968 -Transport Act 1985 -Transport Act 2000 - Railways Act 2005 - Greater London Authority Act 1999	Provide MSAs with powers to engage with rail bodies and influence rail services, infrastructure and planning within their areas.
- Transport and Works Act 1992	Enables new transport infrastructure projects in England and Wales, for example light rail schemes. Read guidance on the Transport and Works Act 1992.
- Railways Bill (Introduced to Parliament on 5 November 2025)	The Railways Bill will establish Great British Railways (GBR) as a single public body overseeing rail infrastructure and services. It will also introduce a statutory role for MSAs, reform fare structures, and establish a strengthened passenger watchdog from Transport Focus.