On 17 March 2025, the Chancellor asked us to carry out a deep dive into the Rail Network Investment Framework with the supply chain to encourage direct investment into railway infrastructure. This work will support government plans to boost investment and drive economic growth across the UK.
October 2025 update - Phase 2 findings and initiation of Phase 3
Published 24 October 2025
Phase 2 of our review has focused on a detailed technical assessment of the RNIF’s core investment mechanisms, including the risk fee funds, risk allocation matrix, template contractual agreements and value thresholds. This work has confirmed that the framework continues to operate effectively while identifying some areas where targeted improvements could further support investment.
The review has also led to the development of new investor guidance, designed to make it easier to navigate the framework and invest across different parts of the rail network. This guidance has now been published on our website. An executive summary from our consultant’s review into the risk fee funds will follow shortly.
Key findings from the phase 2 review focused on the two risk fee funds – the Industry Risk Fee (IRF) and Network Rail Fee Fund (NRFF). These funds provide a consistent approach to managing risk and liabilities, ensuring fair treatment between investors and Network Rail. The review concluded that while the funds remain appropriate and effective, there are opportunities to strengthen how they operate to improve value, efficiency and transparency.
We are now initiating phase 3 of the deep dive, which will take forward these findings through an independent actuarial review of the funds, followed by a formal consultation with stakeholders. This phase will ensure the funds remain financially resilient and continue to provide a strong foundation for private investment in rail.
In parallel, we will also work with Network Rail to progress other phase 2 findings, including refinements to the template contractual agreements and risk allocation matrix.
June 2025 update – Completion of Phase 1
- Phase one of the review is now complete, and we have shared our letter outlining the findings and recommendations with His Majesty’s Treasury. Please find a link to our letter to the Treasury, detailing our findings and recommendations, below.
- Phase two is now underway and will deliver a technical update of the Rail Network Investment Framework.
About ORR’s Rail Network Investment Framework
ORR encourages investment in the rail network, supporting the Department for Transport, Transport Scotland and Network Rail’s ambition to make it easier for a wide range of investors (such as investment funds, scheme promoters and developers) to promote and deliver projects. We also ensure that there is a fair and reasonable balance of risk between investors and Network Rail.
Our key governance document on investment into the rail network is the Rail Network Investment Framework (the Framework), which was originally published in 2006 and last updated in 2022. It contains policy and guidelines that set out the legislation and processes for anyone who wishes to invest in rail infrastructure, including the role of respective parties and remedies for any issues that may arise.
Contact us
Please contact investmentframework@orr.gov.uk if you have any questions or would like any further information.