South Western Railway’s services will be the first to transfer into public ownership next year, followed by c2c and Greater Anglia, the Government has announced.
South Western Railway services across southern England and East Anglia will come back into public control by autumn 2025.
Ministers said the move paved the way for a “major shake-up” of Britain’s railways.
The Government said the transition to a publicly owned railway will improve reliability and support its number one priority of boosting economic growth by encouraging more people to use the railway.
It also claimed the move will clamp down on “unacceptable levels” of delays, cancellations, and waste seen under decades of failing franchise contracts.
The Government said the change will save up to £150 million a year in fees alone by ensuring money is spent on services rather than private shareholders.
The Government said it delivers on Labour’s manifesto commitment to bring contracts with existing rail operators into public ownership as they expire without costing taxpayers a penny in compensation.
Transport Secretary Heidi Alexander said: “For too long, the British public have had to put up with rail services which simply don’t work. A complex system of private train operators has too often failed its users.
“Starting with journeys on South Western Railway, we’re switching tracks by bringing services back under public control to create a reliable rail network that puts customers first.
“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.”
Ms Alexander could not confirm how much the set-up cost would be but told LBC it would be a “fraction” of the management fees currently paid.
Asked why Avanti will not be among the first operators to be brought into public ownership, the Transport Secretary said the decision was based on when contracts expire.
South Western’s franchise contract is due to expire in May of next year, and c2c’s in July.
Greater Anglia has reached a stage in its contract that allows the Government to issue an expiry notice and give a date for the transition, which will take place in autumn 2025.
“We decided to proceed in that way because that means we don’t have to pay compensation to the train operating company,” the minister said.
Mick Whelan, general secretary of Aslef, the train drivers’ union, 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.
“The privateers have taken hundreds of millions of pounds from our railways and successive Conservative governments have pursued a policy of managed decline which has sold taxpayers, passengers, and staff short.”
Rail, Maritime and Transport union General Secretary Mick Lynch said: “This is a significant step forward for passengers, rail workers, and those who want to see an efficient rail system run for the public good, rather than private profit.
“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.”
Gareth Bacon, the Conservative shadow transport secretary, said: “Labour have voted against our plan to strengthen the rights of passengers and commuters.
“We are concerned that the Government’s plans are simply an ideological undertaking that does not put passengers first.
“Keir Starmer’s latest Transport Secretary has a worrying record of failure when it comes to delivering projects on time that improve passenger services. We will closely monitor the impact of these plans.”
Transport Salaried Staffs’ Association general secretary Maryam Eslamdoust said: “This is an historic moment for the rail industry, marking the beginning of the end for the Tories’ failed privatisation experiment.
“The move will mean better value for taxpayers and better services for rail passengers. It recognises that 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 Britain’s workers deserve.”
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