The Labour party has set out its plans for UK rail in a new paper titled ‘Getting Britain Moving: Labour’s Plan to Fix Britain’s Railways’. The paper was released today (25 April), ahead of the forthcoming General Election.
Shadow Transport Secretary, Louise Haigh, confirmed that a Labour Government would bring the railways into public ownership. She stated that during its first term in government, it would:
- Deliver a new Railways Act in the first King’s Speech to create a unified, publicly owned, accountable Great British Railways, which will put the passenger first and be led by rail experts.
- Complete the transition to public ownership, by folding existing private passenger rail contracts into the new body as they expire, without the taxpayer paying a penny in compensation costs.
- Support successful open access and freight operators to continue to deliver, and set clear objectives and targets for passenger services and freight growth.
- Establish a powerful new passenger watchdog, the Passenger Standards Authority, to hold Great British Railways to account on behalf of passengers.
- Deliver a best-price ticket guarantee for passengers, as integrated, digital ticketing is rolled out across the rail network.
- Deliver significant savings to the taxpayer by eliminating fragmentation, waste, and unnecessary bureaucracy.
- Give devolved leaders a statutory role in the rail network, allowing decisions about the railways to be taken closer to the communities they serve.
The new report takes a closer look at what Labour calls “longstanding issues with the railways”, and lays out its plans to address them.
Responding, RIA Chief Executive Darren Caplan, said: “It is important that the political parties set out their plans on what they would do if they won the forthcoming General Election, and so the Railway Industry Association welcomes the Labour party’s contribution to the debate on the future of UK rail.
“We welcome the pledge to make rail reform a priority early in the next parliament, which would give certainty to our members about the future structure of the railway industry, and also the commitment to a long-term strategy, which RIA has been calling for in recent years. It is also positive that rail is recognised as essential to economic growth, integrated transport connectivity, levelling up the nations and regions of the country, and in helping to deliver Net Zero; and that there is a need to deliver value for money for the taxpayer in rail.
“We now look forward to hearing others’ contribution to the debate on the future of rail.”
Rail Partners Chief Executive, Andy Bagnall, said: “Train companies agree that change is needed for the railways, but nationalisation is a political rather than a practical solution which will increase costs over time.
“Creating a thriving railway for customers and taxpayers does not have to be an ideological choice between a monopoly railway in public hands and one that delivers private investment and innovation through franchising.
“There is an alternative plan which gives the best of both worlds and is already being used by Labour Mayors and increasingly across Europe.”
Andy continued: “To change the railway for the better, we must correctly understand the causes of the current situation to get the right solutions. Since the pandemic, train companies have been effectively renationalised and subject to a level of micromanagement by government not even seen under British Rail. Exclusively blaming train companies for all the challenges facing the railway doesn’t stand up to scrutiny.
“Over time, the increased costs to the taxpayer of nationalisation due to the loss of commercial focus from private train companies will lead to either reduced train services or increased subsidy. That means rail competing for funding with other public services like the NHS. Historically, British Rail often lost this battle.
“Private train companies have a track record of regrowing the railway in the two decades prior to the pandemic having doubled passenger numbers, increased the number of train services by a third, and turning a large cost to the taxpayer into an operational surplus for the Treasury. They want to partner with whoever is in government after the election to achieve these successes again.
“There’s already an alternative plan that has been proven to work, exploiting the investment, innovation and commercial expertise of train companies but under the public control of a new governing body to join-up the railways and act on behalf of passengers. Rail users in London already benefit from this approach used by the capital’s Mayor to run buses, trains and trams. Manchester’s Mayor takes the same approach for the Bee bus network.
“Labour’s proposals are also moving in the exact opposite direction to what we’re seeing across Europe where other governments are seeking to copy the previous successes of the British model using competition amongst train companies – both for contracts and on the tracks – to reduce subsidies for taxpayers and provide a better service for passengers.
“We welcome the recognition in Labour’s plans that private sector freight and open access operators have a lot to offer. But ejecting private train companies from the railway will create a prolonged and messy transition at a time when we need all parts of the railway to pull together to deliver for passengers and freight customers.”
The supply chain has also responded to the report. Martin Howell, Director, Transport Markets, UK & Ireland at Worldline, commented: “The Labour Party’s proposal to nationalise rail services within five years of being in power underscores the potential for transformative change within the industry – especially where the customer experience is concerned. A welcome focus in an industry that needs to attract customers.
“The greatest opportunity lies in implementing a digital transformation that puts the customer first. Introducing integrated digital payment systems and user-friendly customer service platforms can make rail travel less fragmented, more accessible, and attractive to users of all ages and backgrounds. What is required for private investors to commit funds is a visible long-term commitment on the Government’s part and a clear, strategic plan for the rail industry.”
Community Rail Network Chief Executive Jools Townsend added: “It is encouraging to get further clarity on Labour’s vision for rail, with key objectives for a more passenger-focused, inclusive railway that everyone can rely on and benefit from. In community rail we appreciate the huge difference this can make to our communities and people’s lives.
“We welcome commitments ensuring that rail decision-making takes place close to local communities, allowing the railway to be responsive to local needs. Targets to increase modal shift and improve rail’s integration with other transport modes will also help to focus minds on the need to transfer more journeys to rail, alongside buses, active travel, and community and shared mobility, for the sake of our climate, local places and people’s health.
“We also welcome the commitment to deliver legislation on rail reform early in the next parliament, and will continue to work with partners in government and the rail industry to support the development of a more community-focused railway that delivers maximum social, environmental and economic value.”
