The Department for Transport has announced the creation of a new rail franchising group.

According to Railnews, a single team will now be responsible for developing a framework agreement for Network Rail, ahead of the organisation's classification into the public sector. Additionally, it will manage independencies between rolling stock, stations, freight and passenger services. 

The announcement came as the result of the Brown Report into the demise of the Intercity West Coast franchise. The new department will be managed by an externally-recruited director and supported by non-executive board members.

Patrick McLoughlin, secretary of state for transport, commented: "A new approach to recruitment, reward and career development for commercial rail skills will allow the rail executives to increase capability at all levels and bolster commercial experience in the management team."

He also told the House of Commons transport committee he would remain involved in the core consideration process of franchise decisions, but would not take part in commercial negotiations.