Rail and bus services back in public hands in sweeping renationalisation plan
RAIL and bus services are heading back into public hands as the new Government rolls out a sweeping renationalisation plan.
The King’s Speech unveiled four key pieces of transport legislation – all centred on a promise to prioritise passengers and boost the economy.
They will bring rail and bus services back into public hands and establish a new-arms length body, Great British Railways, which will unify track and train operations.
The move will undo Sir John Major’s reforms from the 1990s, in which private operators took over the running of trains from the state.
The Government said transferring operations to the public sector will “save the taxpayer millions” that are currently paid out in fees to private operators each year,
But Transport Secretary Louise Haigh, while in opposition, admitted that Labour couldn’t guarantee lower rail fares just simpler tickets.
GBR will roll out digital ticketing and automatic compensation across the network.
Another Bill will use the plans from the second phase of HS2, which was scrapped by Rishi Sunak, to improve train services in northern England.
Reading the speech, the King said: “A Bill will be introduced to allow local leaders to take control of their local bus services.
“My Ministers will bring forward legislation to improve the railways by reforming rail franchising, establishing Great British Railways and bringing train operators into public ownership.
“Taken together these policies will enhance Britain’s position as a leading industrial nation and enable the country to take advantage of new opportunities that can promote growth and wealth creation.”
The Government said the Passenger Railway Services (Public Ownership) Bill is an early step towards delivering their border programme of reform, including through their Railways Bill.
It will amend existing legislation, making public-sector operation the default choice for rail services, instead of a last resort.
It will also mean the first contracts can be brought back into public ownership as soon as possible.
They will be transferred to a public-sector operator as they expire or if operators fail to meet their commitments, avoiding the need to pay them compensation.
Meanwhile, through the Railways Bill, the Government will establish GBR to unify track and train operations.
The new body will focus on delivering high-quality services for passengers and freight, promoting reliability, affordability, and accessibility across the network.
The Bill will also introduce a new Passenger Standards Authority to independently monitor and improve service standards.
For a smooth transition, the Government will set up a “shadow GBR” for key industry bodies so that they can immediately begin implementing improvements.
Meanwhile, through the Better Buses Bill, Sir Keir Starmer will deliver on his manifesto pledge to reform the bus system.
The draft legislation will give new powers to local leaders to franchise local bus services and lift the restriction on the creation of new publicly owned bus operators.
The bus reforms are based on a model introduced by Labour Mayor Andy Burnham in Manchester.
Those changes took six years but the Government will seek to cut red tape in order to bring the benefits of improved bus services to communities across England much faster through the legislation.
Areas identified for early schemes are thought to include Cambridgeshire, Liverpool, Peterborough and West Yorkshire.