UK

WHEN PRIVATIZATION FAILS

South Western Railway to become first train operator nationalised in major Labour shake-up

4 December 2024

South Western Railway will become the first train line to be transferred into public ownership. Picture: Alamy

By Henry Moore

South Western Railway will become the first train line to be transferred into public ownership next year, the Government has announced.

The nationalisation will mark the first of a series of British train lines becoming state-owned in what Labour has described as a “major shake-up” of the country’s railways.

The transition to a publicly owned railway is designed to improve reliability and boost economic growth by encouraging more people to use trains.

Today’s announcement comes after The Passenger Railway Services (Public Ownership) Act 2024 passed through Parliament last week and marks the start of all of Britain’s train lines returning to public ownership.

Moving Britain’s railways to public ownership will cut down the “unacceptable levels” of delays, cancellations, and waste seen under decades of failing franchise contracts, ministers claim.

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.

Today's announcement will see services across southern England and East Anglia come back into public control by autumn 2025.

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."

Union bosses have hailed the decision, praising it as a move that can help “rebuild Britain.”

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 added: "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."

However, the move has been met with criticism from Conservatives.

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."

Former Rail Minister Norman Baker told LBC that nationalisation isn’t always the answer, telling Ben Kentish 'be careful what you wish for when it comes to Britain's railways.'