Passenger Railway Services (Public Ownership)
Bill
“My Ministers will bring forward legislation to improve the
railways by reforming rail franchising, … and bringing train
operators into public ownership”
- This Bill will allow the Government to deliver its manifesto
commitment to bring rail services back into public ownership, to
improve passenger journeys and deliver on the mission to drive
growth. This is an early step towards achieving the Government's
bold vision for the railways.
- Our railways are essential in ensuring reliable, affordable
and accessible transport, which works for passengers and
efficiently moves goods around the country. The sector and its
supply chains support more than 240,000 jobs and generate wide
economic benefits by connecting people and places. Unlocking the
full potential of the railways is essential to growing the
economy and lowering emissions from transport.
What does the Bill do?
- This Bill is an early step towards delivering our broader
programme of reform, including through our Railways Bill. It will
amend existing railways legislation so that appointing a
public-sector operator is the default position rather than merely
a last resort. We are introducing this piece of legislation
swiftly to ensure we are able to act decisively and bring the
first contracts back into public ownership as soon as possible
once it is in place.
- Transferring operations to the public sector will save the
taxpayer millions of pounds that are currently paid out in fees
to private-sector operators each year. Train operations
will transfer to a public-sector operator as existing contracts
expire or operators fail to meet their commitments, avoiding the
need to pay compensation to the current operators.
- We are reforming the railways so that they serve the
interests of all users and the taxpayer, rather than focusing on
maximising financial returns to private-sector operators. Rail
reform will end years of fragmentation and waste, and deliver
more effectively for the customer.
Territorial extent and application
- The Bill will extend and apply to Great Britain.
Key facts
- Public ownership of our railways is about the practical need
to deliver better services where they have failed. The previous
Government had to bring failed franchises into public ownership –
most recently TransPennine Express – just like infrastructure was
brought into public ownership and control in 2001 after the
collapse of the privatised Railtrack. At present, four of
the fourteen DfT rail contracts are operated in the public
sector: London North Eastern Railway, Northern, Southeastern and
TransPennine Express.
- TransPennine Trains (TPT) Limited was brought into the
operator of last resort in May 2023. In the latest quarter, TPT
were the most improved operator in terms of cancellation scores
compared to the same period a year earlier. LNER also recently
achieved a surplus and returned the money to the government,
which displays its clear commitment to delivering for the
taxpayer.
- 54 per cent of people surveyed in a May 2024 Ipsos poll
supported the Labour Party policy of bringing passenger rail
services into public ownership.
- Public ownership is key to delivering this Government's Plan
for Rail, which could lead to significant savings. This includes
management fees we will no longer need to pay to private sector
operators.
