Office of Rail and Road (ORR): independent reviewer and terms of reference
Details on the independent review of the Office of Rail and Road, led by Dr Richard Judge, under the Regulator Performance Independent Review Programme.
Background and purpose of the Regulator Performance Independent Review Programme
As set out in the government’s action plan for ‘a new approach to ensure regulators and regulation support growth’ in March, realising this government’s vision means driving regulator performance and capability, and strengthening the model of accountability. This requires a greater focus on the activities of regulators to make sure we are striking the right balance between consumer protection and growth.
This includes bolstering performance through increased strategic alignment between government and regulators, as well as building on expert input. The Department for Business and Trade (DBT) is therefore working with sponsor departments on a programme of independent regulator performance reviews. These reviews will be independently led by experts to identify areas of best practice, evaluate performance and where improvement is needed, and recommend solutions required to go further and faster to secure and sustain growth. The reviews will be published with clear and actionable recommendations for regulators and government, including cross-cutting issues beyond individual regulators.
Reviewer biography
The review of the ORR will be led by Dr Richard Judge. He has expertise in regulation and regulatory innovation, gained through a career spanning both regulated entities and regulatory bodies (including as CEO of the Health and Safety Executive, 2014 to 2018). He has led and co-authored several recent international studies, including a foresight review, relating to the regulation and governance of infrastructure systems.
Dr Judge’s portfolio of non-executive and advisory roles builds on his leadership experience as CEO of UK regulators, government agencies, and private sector businesses. He is Chair of the Vehicle Certification Agency, Deputy President of the Institution of Mechanical Engineers, and an Associate of the National Infrastructure and Service Transformation Authority (leading independent reviews of complex transformation programmes). He is a Chartered Engineer and Chartered Director.
Context for the review of the Office for Rail and Road (ORR)
As part of the government’s rail reform agenda, the role of ORR is being considered in-depth ahead of the significant changes to the rail sector. The independent review will help ensure the regulator is well placed to deliver transformation to the rail sector and organisational change, while continuing to deliver its existing roles and functions (such as roads monitor) effectively. The review will also allow for the development of key learning and insights to support performance improvements for other regulators.
Scope
The review will consider specific elements of the regulator’s operations; review modules include:
Purpose
This module will seek to understand whether the regulator is incentivised to align strategically with government, where appropriate, on top priorities such as growth. In light of the rail reform, rail duties will be excluded from the review. Therefore, for rail, the review will not consider the ‘clarity’ criteria of the purpose module and will instead emphasise the ‘capability’ module. Given rail sector transformation, this module will particularly focus on ORR’s continuing functions such as its responsibilities as the road monitor, including on road duties.
Capability
Considers resourcing, leadership, adaptability and skills, and how this can be adapted for the future. The reviewer will consider if the regulator is sufficiently resourced to deliver against its objectives and assess how well it allocates that resource. It will look at the quality of leadership and how well the regulator monitors and adapts to the changing needs of the sector.
Performance
Assesses the regulator’s strategy, delivery, impact and service quality. This includes evaluating the effectiveness of processes and how the regulator works with stakeholders to deliver.
Accountability and governance
Evaluates wider governance and accountability processes. This includes internal processes to review performance and decision making, and external arrangements such as the regulator’s accountability to Parliament and its sponsoring department.
Reporting and transparency
Reviews regulators’ own KPIs and assessment process and considers overall accountability and transparency reporting.
Rail reform context
A focal point of the review will be to consider ORR within the changing context of its rail functions, and seek to understand whether it is sufficiently prepared to deliver on both a transformational moment and continue its existing responsibilities. Being set up to deliver on these 3 priorities (change of itself, transformation of sector and delivering continuing functions) will be critical for the success of the reforms. A review can therefore be highly beneficial in assessing the readiness of ORR’s leadership to deliver this change, and how it can maximise its capability to ensure it is fit to deliver against a refreshed set of objectives. The review will also need to ensure that ORR continues to deliver effectively for roads and non-mainline rail (HS1, Channel Tunnel and Northern Ireland rail).
Additionally, the review should consider how ORR’s operation compares with other regulators in the UK, and comparable regulators overseas, as well as any role of ORR in addressing the cost of infrastructure compared to international counterparts.
There are some aspects of ORR and rail sector transformation that have yet to be decided or where conflicting ideas could delay delivery of the reforms. As such, the following areas are out of scope for rail:
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recommendations relating to the continued existence of ORR or its future regulatory identity
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elements of ORR’s future role and responsibilities awaiting ministerial decision, including recommendations on reform to ORRs duties
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rail sector ownership models
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areas covered by the recent consultation ‘A railway fit for Britain’s future’
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rail technical standards
Additionally, the review methodology will recognise the change context of ORR and seek to address functions that ORR will continue to deliver and functions to be transferred to a new body where there can be benefit from documenting historic learning.
The review will seek to identify improvements ORR could drive forward, including assessing current behaviour and capability, and compliance culture, to enable the regulator to deliver tangible transformation as they transition into their adapted role following the creation of Great British Railways.
Approach
An independent reviewer will lead the review, with policy and analytical support from officials in DBT and the sponsor team in the Department for Transport (DfT).
The lead reviewer will be responsible for conducting extensive stakeholder engagement across a range of stakeholders to build an evidence base for recommendations alongside desk-based research.
Duration
We expect reviews to last 4 months on average.
Outcome
The outcome of the reviews will be a published report with assessments of the key modules and actionable recommendations for government consideration. It will primarily be the responsibility of DfT to monitor the delivery and implementation of any recommendations that government accepts.