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South Western Railway to be renationalised by Labour Three rail firms to be renationalised next year
(about 5 hours later)
South Western Railway will be the first rail operator renationalised by the Labour government after it passed a law last week. Three rail operators will be renationalised by Labour next year after it passed a law allowing it to do so.
Labour has pledged to renationalise rail services as operator franchises come to an end, and South Western's contract finishes in May 2025. South Western Railways will be renationalised in May 2025, C2C in July 2025, and Greater Anglia in autumn 2025, the transport department has confirmed.
Control of the railway will be handed to the operator of last resort, the body which runs renationalised rail services, the Financial Times first reported, external. The move is part of Labour's wider plans to renationalise rail services as their operator contracts either end or reach a break.
Some have criticised Labour's plans, arguing that public ownership is unlikely to make much difference unless it is paired with investment in the railways. Some have criticised the plans, arguing that public ownership will not make much difference unless it is paired with investment in the railways.
The Passenger Railway Services (Public Ownership) Act 2024, which passed last week, allows the government to take rail contracts back into public ownership. The Passenger Railway Services (Public Ownership) Act 2024, which passed last week, allows the government to act on its manifesto promise to take rail contracts back into public ownership in five years.
The government plans to set up a new arms length body, Great British Railways (GBR), which will take over service contracts currently held by private firms as they expire in the coming years.The government plans to set up a new arms length body, Great British Railways (GBR), which will take over service contracts currently held by private firms as they expire in the coming years.
It also eventually wants GBR to take over responsibility for maintaining and improving rail infrastructure from Network Rail.It also eventually wants GBR to take over responsibility for maintaining and improving rail infrastructure from Network Rail.
The transport department said that renationalisation will improve reliability, boost economic growth, and save £150m per year in fees.
“A complex system of private train operators has too often failed its users," said Transport Secretary Heidi Alexander.
However, Rail Partners, which represents private train firms, said Labour has "parked the big decisions" on how to fix the railways.
"Simply changing who runs the trains won’t deliver more reliable and affordable services for passengers, reduce subsidy for taxpayers, or grow rail freight," said chief executive Andy Bagnall.
Fares and reliabilityFares and reliability
Responsibility for running train services was handed to private companies during the 1990s, and since then there has been a boom in rail usage.Responsibility for running train services was handed to private companies during the 1990s, and since then there has been a boom in rail usage.
But a number have faced criticism over fares and reliability, with critics saying privatisation has led to an inefficient and fragmented system.But a number have faced criticism over fares and reliability, with critics saying privatisation has led to an inefficient and fragmented system.
Labour made it a manifesto pledge to renationalise most rail services within five years.
During the coronavirus pandemic, the government in effect took control of the railways.During the coronavirus pandemic, the government in effect took control of the railways.
Most train companies in England moved onto contracts where they get a fixed fee to run services, and the taxpayer carries the financial risk.Most train companies in England moved onto contracts where they get a fixed fee to run services, and the taxpayer carries the financial risk.
Four major operators - East Coast Mainline, TransPennine, Northern and South Eastern - have been taken under public control and are being run by the government's operator of last resort.Four major operators - East Coast Mainline, TransPennine, Northern and South Eastern - have been taken under public control and are being run by the government's operator of last resort.
Transport for Wales was brought under Welsh Government control in 2021, and Scotrail was taken over by the Scottish Government the following year.Transport for Wales was brought under Welsh Government control in 2021, and Scotrail was taken over by the Scottish Government the following year.
South Western Railway has more than 1,500 services scheduled to run per weekday in south west London and the south of England.South Western Railway has more than 1,500 services scheduled to run per weekday in south west London and the south of England.
It operates across a huge area of southern England and is a key commuter service into London. It operates across southern England and is a key commuter service into London.
Train operator c2c runs services between Fenchurch Street and Shoeburyness, and serves 26 stations in east London and south Essex.
Greater Anglia runs services between London, Norfolk, Suffolk, Cambridgeshire Hertfordshire and Essex.