UK: The government has confirmed the timescales for the first three train operators to transfer to the public sector following royal assent to the Passenger Railway Services (Public Ownership) Act 2024 which provides the legal framework.
On December 4 the Department for Transport confirmed that South Western Railway services currently operated by a joint venture of FirstGroup and MTR Corp will be the first to transfer in May 2025, followed by Trenitalia’s c2c services in July and Transport UK’s Greater Anglia in ‘autumn 2025’.
The services will be brought into the public sector as the existing contracts expire, avoiding the need to buy out the current operators. All passenger services operated under Department for Transport contracts are expected to be transferred over the next three years. Scottish and Welsh government contracted services are already provided by public sector entities, and Transport for London contracted services are not included in the plans.
The services will in future be managed by DfT Operator Ltd, renamed from DfT Operator of Last Resort Holdings Ltd, whose functions will eventually be integrated into the future Great British Railways.
The government said allowing several months lead-in to each transfer would ensure there will be no adverse impact on passengers.
In the New Year the government will set out plans for how Shadow Great British Railways will facilitate closer co-operation pending the passing of separate legislation which is required for wider rail reforms including the creation of Great British Railways to bring infrastructure and operations under ‘one directing mind’.
Rebuilding the system
The government said the transition to a publicly owned railway would ‘improve reliability and support the government’s number one priority of boosting economic growth by encouraging more people to use the railway’. It would ’clamp down on unacceptable levels of delays, cancellations, and waste seen under decades of failing franchise contracts, and will save up to £150m a year in fees alone’.
Transport Secretary Heidi Alexander said ‘a complex system of private train operators has too often failed its users’, and ‘our broken railways are finally on the fast track to repair and rebuilding a system that the British public can trust and be proud of again.’
Operators respond
SWR said it ‘already works incredibly closely with colleagues in the DfT and Network Rail to deliver for our customers and we’re looking forward to developing that joined up approach even further in the future.’
c2c Managing Director Rob Mullen said ‘this does not create a change in focus for the team at c2c; we remain committed to our customers, communities and colleagues’.
Greater Anglia said ‘we look forward to working with the DfT and ensuring a smooth transition to public ownership. Train services, timetables and station facilities will be unaffected by this announcement, with no changes to ticket validities or conditions of carriage.’
Dominic Booth, CEO of Greater Anglia’s parent company Transport UK, said ‘we are surprised to see Greater Anglia, the best train operator for both the passenger and the taxpayer, on the list of those first to be nationalised. That said, we look forward to constructive dialogue with government at the appropriate time. We are proud that during our stewardship, Greater Anglia has become the best rail operator in the country and the only operator to consistently deliver a premium for the government.’
Rail Partners, which represents the train operator owning groups, said ‘he government is now taking charge of fixing the railways, but has parked the big decisions about how to do that until next year. Simply changing who runs the trains won’t deliver more reliable and affordable services for passengers, reduce subsidy for taxpayers, or grow rail freight.’
The trade body added that ‘it is counter intuitive to start removing private sector operators from the system, with their track record of delivering growth to reduce subsidy, when the question of what will replace them long-term won’t be answered until further rail legislation is introduced. The government has a mandate for its plans for rail nationalisation, now it must deliver the improvements passengers and freight customers want.’
Trade unions
RMT trade union General Secretary Mick Lynch said ‘bringing infrastructure and passenger services under one employer in public ownership means proper investment in operations, harmonising conditions for staff and prioritising the needs of passengers. RMT will support the roll out of Great British Railways and the tangible benefits a fully publicly owned rail system can bring.‘
ASLEF General Secretary Mick Whelan said ‘this is the right decision, at the right time, to take the brakes off the UK economy and rebuild Britain. John Major’s decision to privatise British Rail in 1994 was foolish, ideologically-driven, and doomed to fail. It was described even by that arch-privateer Margaret Thatcher as “a privatisation too far” and so it proved.’
TSSA General Secretary Maryam Eslamdoust said ’railways should be run as a public service rather than as a cash cow for shareholders. We welcome the Labour Government’s recognition of the expertise and experience that railway staff – our members – possess are crucial to the changes they want to see in the sector. We look forward to working with them to deliver the 21st century railway that Britains’ workers deserve.’
Supply chain
Railway Industry Association Chief Executive Darren Caplan said ‘there is now a real opportunity to provide more certainty and visibility over work plans, which will help a reformed railway be a catalyst for boosting growth and connectivity across the nations and regions of the UK, with better services for rail customers — passengers and freight — and ultimately ensure enhanced value for money for the taxpayer.’
