A new report entitled 'Realising the Potential of GB Rail' by Sir Roy McNulty has set out his recommendations for improved efficiency and value for money in the rail industry.
The Government will now consider which of Sir Roy's recommendations to take forward and on what timescales, and is developing a wider package of rail reform to secure a sustainable railway at lower cost that delivers a better deal both to the taxpayer and to the fare payer.
Responding, Transport Secretary Philip Hammond welcomed the report and emphasised the need to reduce the cost of our railways.
"I want to thank Sir Roy for the huge amount of time he has spent preparing this in depth report on why Britain has one of the most expensive railways in the world.
"He warns that unless we get a grip and cut the costs of our railways, passengers could see services cut and fares rise. But, if we seize this opportunity, work together, and push through real reform in our railways we will be able to make savings for both taxpayers and fare payers.
"If Sir Roy's target of £1bn per year of savings is achieved, over the next few years, our aspiration should be to put the era of the above-inflation average rises in regulated fares behind us, as well as reducing levels of taxpayer subsidy. If we are going to achieve this goal we will need everyone involved in the industry, Network Rail, train companies, Unions and Government, to work together and I look forward to beginning that process."