DfT considers changes to investment rules

The way in which rail schemes are financially assessed could change.

Currently, improvement schemes have to pass certain government targets to be approved. Critics say that in some cases, worthy schemes don’t meet the requirement because these tests are flawed.

Answering a question in the House of Lords from Liberal Democrat peer Lord Bradshaw, about what plans the government has to review the assessment criteria used to forecast the results of investment in railway infrastructure, Rail Minister Lord Hendy said the Department for Transport is “actively considering” research carried out by the Institute for Transport Studies, on behalf of the Rail Safety and Standards Board, and that it “plans to bring forward improvements to associated guidance”.

The DfT has a long-standing and established appraisal framework within Transport Analysis Guidance, which is aligned with HM Treasury’s ‘Green Book’ on conducting welfare-based cost:benefit analysis to support a business case. This provides general guidance on forecasting, estimating and assessing costs and benefits.