UK: Organisations across the UK rail sector have broadly welcomed the reform proposals unveiled by Shadow Transport Secretary Louise Haigh on April 25.
Entitled ‘Getting Britain Moving’, the Labour Party policy committed to introducing new legislation to establish Great British Railways early in the next Parliamentary session, should it win the forthcoming general election. It promised a long-term strategy outlining the role of rail in supporting economic growth, delivering an integrated transport network, and improving value for money for taxpayers.
‘There’s a lot to like about the proposals from the Labour Party, and there’s a lot in common with the current government’s policy’, commented Prof Paul Plummer, Director of the Birmingham Centre for Railway Research & Education. ‘There is common ground about the creation of a guiding mind covering track and train and to enable politicians to get out of the detail. And it’s hopefully common ground that GBR needs to empower local teams to do what’s right for customers and taxpayers.
‘There will be a wider range of views about the role of private sector in operations. But what matters is customer experience and value for money. The railway needs a long-term plan which is underpinned by a clear technical strategy, consistent investment, innovation, a more diverse workforce and inclusive customer experience. Hopefully whoever is in power will enable long-awaited change.’
Speaking for the train operators’ owning companies, Rail Partners Chief Executive, Andy Bagnall, said ‘train companies agree that change is needed for the railways’, but warned that ‘nationalisation is a political rather than a practical solution which will increase costs over time. Creating a thriving railway for customers and taxpayers does not have to be an ideological choice between a monopoly railway in public hands and one that delivers private investment and innovation through franchising.
‘To change the railway for the better, we must correctly understand the causes of the current situation. Since the pandemic, train companies have been effectively renationalised and subject to a level of micromanagement by government not even seen under British Rail.’
Bagnall warned that ‘Labour’s proposals are moving in the exact opposite direction to what we’re seeing across Europe where other governments are seeking to copy the previous successes of the British model using competition amongst train companies – both for contracts and on the tracks – to reduce subsidies for taxpayers and provide a better service for passengers.’
Responding on behalf of the supply sector, Railway Industry Association Chief Executive Darren Caplan said it was important for the political parties to set out their proposals ahead of forthcoming election.
‘We welcome the pledge to make rail reform a priority early in the next parliament, which would give certainty to our members about the future structure of the railway industry, and also the commitment to a long-term strategy, which RIA has been calling for in recent years. It is also positive that rail is recognised as essential to economic growth and integrated transport connectivity’.
Freight growth vision
The Rail Freight Group welcomed the commitment to rail freight growth. ‘We are pleased that the Labour Party has highlighted the huge economic potential of rail freight and is committed to measures including statutory duties for freight and long-term growth targets’, commented RFG Director General Maggie Simpson. ‘Our members are working to get more goods moving by rail and we strongly welcome this support.’
GB Railfreight CEO John Smith pointed out that the rail freight industry already contributes £2·45bn to the UK economy each year, helping to deliver millions of items to consumers while reducing road congestion and carbon emissions.
Freightliner said growing rail freight and securing modal shift would be ‘crucial to meet our net zero and decarbonisation commitments’, with CEO Tim Shoveller adding that this would ‘require supportive policies that make rail the mode of choice for customers’. He committed to continue working closely with the current and future governments to ‘harness rail freight’s full potential’.
Ellis Shelton, Senior Policy Advisor at Logistics UK, emphasised that it would be important to ensure ‘that any proposals for increasing rail freight are supported by appropriate incentives and policies, including the creation of a national freight network with rail playing a key part in it, support for the establishment of rail freight terminals, and a commitment to electrify the entire rail network’.
Public and private
‘Labour’s pledge highlights critical and long-overdue discussions about the future of our rail system’, commented David Pitt, Vice President of UK Rail at ticketing systems operator SilverRail. However, it’s important that driving for change in the industry isn’t viewed as a political issue, but rather a necessity to enhance operational efficiencies and improve passenger experiences.
‘While nationalisation debates will undoubtedly continue, it is crucial that all parties – government, unions, and the private sector – collaborate to address immediate concerns such as service reliability and customer satisfaction. We believe that rather than being a black and white issue in terms of nationalisation or privatisation, there is room for an improved middle-ground approach that combines elements of public oversight with private sector innovation and competition.’
Mark Plowright, Director of Virgin Trains Ticketing, said Labour had recognised that the private sector has a role to play, as ‘rail retail is a key part of the puzzle when it comes to rail reform. However, to really deliver on fares simplification, we need to address the outdated rules and regulations’ that limit the contribution of independent retailers.
