The UK government has announced its plans to renationalise three Train Operating Companies (TOCs) under the new Passenger Railway Services (Public Ownership) Act.
South Western Railway, C2C and Greater Anglia are to be brought under government control in 2025.
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The strategic move is part of a broader effort to reform and invest in the rail sector, fostering growth and uniting track and train operations under a single entity, the Department for Transport (DfT) said.
The reforms were first introduced in September by former Transport Secretary Louise Haigh who resigned last week. The work is being continued under Heidi Alexander, the new Transport minister.
The shift to public ownership is expected to “improve reliability and support the government’s number one priority of boosting economic growth by encouraging more people to use the railway,” DfT said.
The change is intended to address long-standing issues of delays, cancellations, and inefficiencies that have plagued the railway under private franchise contracts.
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By GlobalDataThe government anticipates savings of up to £150m ($190m) annually, ensuring that funds are invested directly into services rather than distributed to private shareholders.
The tactic of allowing current contracts to run their course, and to bring TOCs back into government control gradually is a political choice designed to keep the cost of nationalising the railways down.
Transport Secretary Heidi Alexander said: “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 repairing and rebuilding a system that the British public can trust and be proud of again.”
The publicly managed services will be overseen by DfT Operator Limited – previously known as DfT Operator of Last Resort Holdings Limited (DOHL)- which will later become part of Great British Railways (GBR), a state-owned arms-length body that will manage the national rail network.
The DfT anticipates the transfer of all passenger services to GBR to be completed within the next three years.
Railway Industry Association (RIA) Chief Executive Darren Caplan said: “Today’s announcement is an important milestone on the journey to a restructured railway. The UK supply chain will work with and support the government’s plans to deliver improved rail performance and reliability, as we together develop world-class rail, both track and train.”
Since taking office in July, the Labour-run government has settled long-running pay disputes and made changes that have cut down LNER cancellations to “near zero”.
The government is also focusing on improving rail performance and services for passengers. Chancellor [Finance Minister] Rachel Reeves committed to funding upgrades and electrification projects across the country.
