Network Rail must cut £2bn from spending plans, says regulator The rail regulator also said Network Rail must meet a tougher target of at least 90% of trains running on time. Network Rail will have to cut more than £2bn from its spending plans over the next five years and meet tougher punctuality targets, the rail regulator has announced. The Office of Rail Regulation (ORR) said it had identified billions in savings to be made in Network Rail's business plan, while still allowing Britain's railways to grow over the next five years. But the track operator said it had already made huge savings, while unions said cuts would worsen the service and warned of strikes if jobs were lost. The ORR said the day-to-day running of the railway could be managed more efficiently and cheaply without jeopardising safety. It approved £12bn of investment but warned that funds would not be released until detailed plans were delivered proving value for taxpayer money. The overall total will be reduced to £37.9bn from a proposed £40.1bn, including interest payments. Network Rail last week announced its debt had increased to more than £30bn, and the government has said it wants the cost of the railways to the taxpayer to be reduced. Passenger numbers are expected to rise by a further 14% by 2019. The ORR is also demanding at least 90% of trains running on time on every route with a higher overall average target of 92.5% punctuality, as well as higher standards of network infrastructure management and improved safety for passengers and railway workers. ORR's chief executive, Richard Price, said: "Britain's railway is a success story and it has made significant progress over the last decade. In order to sustain this progress and retain support and confidence, the industry must continue to improve its efficiency to reduce its dependence on public subsidy. Network Rail responded that it had already achieved cost savings of 40% in the last decade. A spokesman said: "A decision of this significance, which will be important not only for the railway's 4 million daily passengers and freight users, but also the economic prosperity of the country and the future sustainability of the network, needs careful and detailed thought. We will take the time necessary to analyse our regulator's initial findings before giving our formal response in September. The budget will be formally approved later in the year. Unions warned that trying to find saving through compulsory job losses would mean an immediate strike ballot. The RMT general secretary, Bob Crow, added that the £2bn cuts would compromise maintenance and safety: "Far from improving performance it would mean overhead lines coming down and track and signal failures leading to travel misery for millions."