Labour says it expects to renationalise most passenger rail services within five years, if it is elected. The party says it will meet the pledge by bringing passenger services into public control as the contracts expire – but there will still be a role for the private sector. Automatic refunds for train delays and improved internet connections are among a series of other railway pledges. Rail Minister Huw Merriman said the plans were “pointless” and “unfunded”.
“They don’t have a plan to pay for the bill attached to their rail nationalisation,” he said. “Without a plan to pay for this, it means one thing: taxes will rise on hard working people. The word “nationalisation” doesn’t appear in Labour’s plan, but that is what it in effect amounts to.
Shadow transport secretary Louise Haigh, who announced the plans, said there would still be a role for the private sector. She added her party were not “ideologues” and that it was right to use private companies, where they add value.
Labour would still allow privately financed “Open Access operators”, such as Hull Trains and Lumo, to continue.
Open Access operators currently run a relatively very small proportion of services. They run independently of government funding and are often in competition with franchised operators.Labour is also not planning to nationalise rail freight companies or rolling stock companies.
Private train companies have overseen a boom in rail usage in the UK since the days of British Rail, but they have also faced heavy criticism over fares and reliability.
Four major operators, including TransPennine Express, have also been taken under public control and are being run by the government’s Operator of Last Resort model.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 in effect took control of the railway, with most train companies in England moving onto contracts where they get a fixed fee to run services, and the taxpayer carries the financial risk.
Like the government, Labour is pledging to establish Great British Railways but says it would be led by “rail experts rather than Whitehall”.
The party says the move to bring services back into public control would not cost the taxpayer “a penny in compensation costs”.
The pledge may not cover every current passenger rail service. The contract for Abellio East Midlands expires in October 2030Speaking to BBC News, Ms Haigh said the current system “was not working” and had led to delays and overcrowding.
She said the model was beset by “competing interests” and that bringing services together under Great British Railways would improve passengers’ experience.
Labour says “significant” savings can be made through public ownership including by reducing friction between operators and having less duplication of resources.
It says the government estimated in a 2021 reform plan that it could save £1.5bn annually after five years by ending inefficiency and fragmentation.
The party will also pledge to deliver automatic refunds for delayed and cancelled journeys, better internet connection on trains and “a best-price ticket guarantee” ensuring passengers automatically pay the lowest possible amount for tickets when making contactless payments.
Source: BBC
