The Labour government will launch legislation as soon as possible to nationalise railways. Takeovers of UK’s largest operators are expected to occur within months.
According to an analysis of data from the official sources, Labour’s plans are likely to see nearly three-quarters (75%) of all train trips in Britain be nationalised within a year.
Labour officials confirmed that Transport Secretary Louise Haigh had secured the priority status of the bill on passenger rail services, which is due to be presented to the House of Commons this Thursday.
Haigh stated that the government will “move quickly and fix things”. She added, “Our transportation system is broken but today’s legislation will pave way for better trains, that work for everyone no matter where they live.”
The bill aims to renationalise all railway services, after the Conservative government took over about 40% of services in the last decade as operators fell through.
One official from the Department of Transport said, “We want to move very quickly. This is legislation that can easily be implemented.”
Officials are unsure when the bill will receive Royal Assent, given the long recess that occurs in August. Next week’s agenda is set by the general discussion of the wider political agenda outlined in the King’s Speech.
The bill will return to the government all contracts for train operators given to private companies as soon as the contract expires.
Industry bosses, however, are readying themselves for ministers who will exercise the break clauses of these contracts to bring in operators earlier and to fulfill the promise made by the government to complete the project within this Parliament.
Greater Anglia and West Midlands are due to expire on September 15 but legislation is unlikely to be passed at this point.
Five franchises will have break clauses in the first half 2025. By then, the bill could be law. Chiltern and Thameslink on April 1, Southern and Great Northern in May, Great Western on June 22, and Essex Thameside by c2c on July 20.
According to an analysis, if all of these trains are taken over by the public, then 72 percent of the passengers’ journeys on the mainline rail system in Britain by July 2025 will be done on trains that the state controls.
The total distance traveled on rail lines that are under state control or whose contracts expire in July 2025 was calculated.
Industry executives expect operators to be merged into the Operator of Last Resort unit of the Transport Department, which runs several lines the previous Tory Government was forced to nationalize, including LNER & Northern.
Industry bosses have warned that the scale and complexity of rapid nationalisations may put pressure on OLR. The OLR is currently staffed by a dozen or so people.
Andy Bagnall is the chief executive of Rail Partners which represents private train companies. He agreed that the industry needs “radical reform”, however, he said that cutting out the entire private sector could lead to increased costs.
Haigh also pledged to nationalise struggling operators faster if they breach contract due to poor performance. She was particularly critical of Avanti which operates trains on the West Coast Mainline connecting London to Birmingham and Manchester.
One government official said, “We are currently seeking legal advice and exploring our options.”
Avanti’s break clause does not take effect until 2026. Industry executives have privately stated that ministers may struggle to nationalize the company sooner unless it is in clear breach of its performance targets.
Long-term, the government intends to create Great British Railways as a new quasi-public company to manage the rail system. This includes both the trains and infrastructure that are owned and operated publicly by Network Rail.
According to government officials, it will take 18 months for the King’s Speech legislation, which created GBR, to be passed through the parliament.
Ministers will, in the interim, appoint the chair of a “shadow GBR”, which is a group of Network Rail and the Transport Department working together with the Operator of Last Resort.
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