A joint report by the Scottish Law Commission and the Law Commission for England and Wales today recommends that it should be reformed to create a new procedure to allow for their compulsory closure.
They also recommend improving the safety regime for level crossings and clarifying the law about rights of way across railways.
It follows a four-month consultation in 2010.
Analysis estimated that a simplified system for level crossing closure would help save more than £343m over 60 years. This was based on shutting between 5-25% of crossings which were "economically beneficial to close", with the savings based on cutting road congestion, accidents and waiting times. This would be felt by "all road and rail users and by ORR, Network Rail and train operating companies", said the report.
A further £32m could be saved in administration costs, mainly benefitting the Office of Rail Regulation, by removing the need to make changes to individual level crossing orders and having a system so generic changes can be made more easily.
Dr Andrew Steven, lead Commissioner at the Scottish Law Commission, said: "Our recommendations provide a new legal framework for level crossings in Great Britain."