In a significant shift in Britain’s transportation policy, rail unions have hailed the new government’s commitment to renationalize the nation’s railways.
“Britain’s trains will be run as a public service, not for private profit,” proclaimed the unions, following the announcement in the King’s Speech.
Labour plans to renationalize the railways through two distinct bills. One bill will bring train services back into public ownership, while a second, more complex bill will establish a dedicated public body, Great British Railways (GBR).
Rail industry leaders and unions have warmly welcomed this long-anticipated overhaul.
However, private train operators have cautioned that nationalization could drive up costs, as their phase-out from the industry was confirmed alongside a suite of new transport legislation introduced on Wednesday, July 17.
The government has declared that public ownership will be the “default position” for train operators.
Additionally, local councils may gain the authority to own and control bus services under separate legislation.
The passenger railway services (public ownership) bill is set to dismantle the current system, where four of the 14 national train operators are managed by a state-owned “operator of last resort.”
This operator steps in only when a private firm fails. Services will transition back to state control as existing contracts expire, or sooner if legal grounds for contract breaches are identified.
Avanti West Coast, in particular, has been warned to improve performance following a meeting with Transport Secretary Louise Haigh.
A separate bill will establish GBR, echoing reforms proposed by the Conservatives in 2021. GBR aims to create a unified and simplified rail system, integrating track and train management under a single organization.
Private open-access operators, such as Hull Trains or Lumo, will continue to operate where their services add value and capacity to specific routes.
The new transport legislation also expands the powers of local councils to reclaim bus services.
This move is part of a broader effort to address some of rail’s immediate challenges, including the industrial relations issues that have troubled operators like Avanti.
Labour’s employment rights bill, which swiftly ends Conservative plans for minimum service levels during strikes, may also help alleviate these problems.
Rail Unions Support Government’s Renationalization Plan
Mick Lynch, general secretary of the RMT union, expressed his support for the announcements on trade unions and public ownership.
“We will actively engage with the government on the pay issues in our sectors which can be resolved quickly,” Lynch said.
Mick Whelan, general secretary of the train drivers’ union Aslef, called the renationalization plan “the right decision, at the right time.” He added that the railway would now be “run as a public service, not for private profit.”
Darren Caplan, head of the Railway Industry Association, described the legislative program as “a strong agenda for driving growth.”
He noted that GBR’s strategic oversight could focus on meeting growing passenger demand and boosting industry revenues.
Rail Partners, representing private train operators, acknowledged the commitment to creating GBR as “an important milestone.”
However, CEO Andy Bagnall cautioned that “full nationalization is a political, not a practical solution, which will increase costs over time.”
The high-speed rail (Crewe-Manchester) bill, a holdover from the previous government, will proceed, despite the government’s decision not to reverse Rishi Sunak’s controversial cancellation of the northern leg of HS2.
Retaining the bill allows progress on sections of HS2 that intersect with the proposed Northern Powerhouse Rail line without further legislative delay.
New laws will also make public ownership of buses a possibility. The Better Buses bill will extend franchising powers from metro mayors to all local authorities and remove the ban on contracting municipal bus companies to operate routes.
The government asserts that this will enable local leaders to develop bus networks that reflect their communities’ needs and give councils greater control over funding.
As such, the government’s comprehensive transport policy marks a dramatic shift towards public ownership, with significant implications for the future of Britain’s rail and bus services.
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