Under plans published in a new White Paper today, overall strategy for the railways will be set by the Government in future, including performance levels.

The move will involve winding up the Strategic Rail Authority with the majority of its functions being transferred to the Secretary of State. The system will continue to be regulated independently.

The White Paper also proposes:

• Overall responsibility for the network to pass to Network Rail who will be accountable to freight users and passengers for its performance
• Reducing the number of franchises, and introducing greater clarity between track and train companies to enable companies to work closer
• Passing increased power to the devolved administrations in Scotland, Wales and London to enable decision making at a local level
• Passing responsibility for rail safety to the Office of Rail Regulation which is independent of the industry and government

"The proposals I am announcing today streamline the structure of the organisation of the railway, they provide a single point of accountability for performance, allow closer working between track and train and provide for greater local and devolved decision making," he said.

"We are putting the organisation of the railways on a stable long-term footing backed by increased funding. We have set out a clear direction for Britain's railway backed by the money it needs."