Labour is planning to renationalize most passenger rail services within five years if they are elected. They aim to meet this pledge by bringing passenger services into public control as contracts expire, but they will still allow a role for the private sector. Labour would still allow privately financed “Open Access operators,” such as Hull Trains and Lumo, to continue.
The government has already promised to set up a new public sector body named the Great British Railways, responsible for rail infrastructure and awarding contracts to private companies. The plans were initially announced in 2021 but have been delayed, and although a draft bill to implement the proposal has now been published, it is unlikely to become law before the general election expected this year.
During the pandemic, the government took control of the railway, with most train companies in England moving onto contracts where they receive a fixed fee to run services, and the taxpayer carries the financial risk. Four major operators are also under public control after being taken into the government’s Operator of Last Resort. The move to bring services back into public control can be accomplished without costing the taxpayers “a penny in compensation costs,” according to the Labour party.
Shadow transport secretary, Louise Haigh, said the current system “was not working” and had caused overcrowding and delays. She stated that bringing services together under Great British Railways will improve passengers’ experience. According to Labour, “significant” savings can be made through public ownership by reducing friction between operators and having less duplication of resources. It says that the government estimates that it could save £1.5bn annually after five years by ending inefficiency and fragmentation
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