Members of the Bluebell Railway have been involved in discussions over the last few months about proposals to restructure the corporate structure of the Bluebell Railway.

In early December, a joint BRPS/PLC Working Group, chaired by Keith Leppard, Acting Vice Chairman of the Bluebell Railway Preservation Society (BRPS), presented the proposals to a joint meeting of the Trustees, Directors and Governors of the BRPS/PLC/Trust. The BRPS and PLC Boards have now agreed that a detailed development and implementation of the proposals can proceed.

Before the proposals can go forward, however, both the members of the BRPS and the PLC shareholders must support them. Two major reasons have been identified for why the change is needed:

• The financial position of the railway needs to be improved.
• There is a need to streamline the railway’s decision-making and management structures.

The financial position is highlighted by successive recent annual accounts, which show that regular losses are being made and are unsustainable. If the operating entity had charitable status, it would be eligible to receive Gift Aid on parts of its income, which would lead to a substantial reduction in lost revenue. Also, as a charitable organisation, the railway would qualify for a significant reduction in its business rates.

Regarding the decision-making and management structures, currently, three boards each need to discuss many of the same issues, with the consequent and possible confusion over which board makes the decisions.

A major problem with this structure is the need to find enough people willing to fill all available posts. It is not proposed to change the structure of the Trust; the proposals only relate to the Society and the PLC, which are currently Companies Limited by Guarantee and by Shares respectively.

The aim is to combine the two entities into a single Charitable Community Benefit Society (CCBS), which would own and operate the railway. It is estimated that this will take approximately 18 months, although some benefits are expected to be realised before then. On completion, membership of the CCBS would consist of current BRPS members and the PLC shareholders, who would each have equal voting rights.

Rail Tour operator Vintage Trains already operates as a charitable trust, and last year, the Severn Valley was restructured to bring the train operating company and the Severn Valley Railway Company Limited, which deals with membership and volunteers, into a single organisation.