Network Rail will be expected to make £1.7Bn in efficiency savings over the next five years, representing around five percent of its budget.

The Office of Rail Regulation has published its final determination for the 'Control Period' from April 2014 to March 2019. Network Rail has until 7 February next year to decide whether to accept the proposals.

The Regulator said that Network Rail will need to improve standards of infrastructure management, network resilience and safety for passengers and railway workers. It added that the company will also deliver a programme of enhancements to the rail network worth more than £12Bn.

Savings will not come at the expense of safety, it went on. Dedicated funds of £109M will be available to close around 500 level crossings and improve safety at hundreds more of the highest risk crossings in Britain. There will be around £250M to help improve safety of track workers, to be invested in new equipment and safer working practices. The ORR has also approved an extra £571M to upgrade structures such as bridges and tunnels.

ORR chief executive Richard Price said: “Network Rail is capable of delivering more for customers and taxpayers. With increased levels of funding in vital areas such as safety and closer monitoring from the regulator, we expect Network Rail to build on past successes and beat the challenges we have set.”

Network Rail chief executive David Higgins said: "We must now look at the individual targets within the determination, as well as the package as a whole and welcome the opportunity provided by the ORR to use the coming months to seek clarification and work through the detail.”

(Photo: Network Rail)

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