Committee publication · Estimate memoranda · 20 May 2026
Office of Rail and Road Main Estimates Memorandum 2026-27
From: Transport Committee
Summary
This is the Office of Rail and Road's Main Estimates memorandum for 2026-27, setting out its spending plans and funding structure. The ORR seeks £46.0m gross expenditure (fully funded by industry levies, licence fees, and Department for Transport grants), with a token net Resource DEL of £0.001m and Capital DEL of £0.711m. Spending increases fund rail reform work and a new Lower Thames Crossing regulatory role.
Key findings
- Gross expenditure rises from £43.5m (2025-26) to £46.0m (2026-27), a 5.7% increase, driven by rail reform preparatory work and the Lower Thames Crossing regulatory function.
- ORR operates on a self-financing model: income from Network Rail licence fees (£21.988m), rail industry safety levies (£20.465m), and Department for Transport highways grant (£3.504m) fully covers expenditure, resulting in a token net Resource DEL of £0.001m.
- Capital spending decreases from £1.020m (2025-26) to £0.711m (2026-27), a 30% reduction, reflecting completion of Glasgow office relocation (IFRS 16 lease costs).
- ORR is undertaking a transformation programme in 2026-27 to create an agile organisation aligned with the wider rail reform programme, funded from within existing administration budget.
- All costs are administration costs; no efficiency plan is required, though identified savings are reinvested to maximise regulatory impact.
Tone
ProceduralTopics
rail-regulationpublic-financetransport-infrastructurehighways-regulation
Key actors
Office of Rail and Road, Department for Transport, Network Rail, National Highways, Rail Ombudsman, John Larkinson
Notable line
“Our income covers our expenditure fully, therefore we have a token Vote.”
Key Quotes
“Our core purpose is to protect the interests of rail and road users, improving the safety, value and performance of railways and roads today and in the future.”
“The planned increase in 2026-27 is to fund further work in relation to rail reform and a new role in relation to the Lower Thames Crossing.”
“ORR will be undertaking a transformation programme in 2026-27, focused on creating an agile organisation with the right capability and culture to ensure that we are best-placed to integrate into the wider rail reform programme.”
Source · parliament.uk record ↗