Great British Railways will, for the first time in more than three decades, assess whether new trains should be publicly owned rather than leased, as part of a major new strategy designed to deliver better value for taxpayers and passengers while creating a more integrated railway.
The government’s newly published rolling stock and infrastructure strategy marks a significant shift in how rail investment will be planned across Britain. Under the proposals, GBR will take a coordinated approach to decisions on trains, track, depots and maintenance, ending years of fragmented planning across different parts of the industry.
The strategy introduces a new policy for train procurement, with GBR required to evaluate on a case-by-case basis whether direct public ownership, leasing arrangements or alternative financing options deliver the best long-term value.
The move forms part of the government's wider rail reform programme, which aims to bring passenger services under public control through GBR and create a more joined-up railway focused on passenger outcomes.
For over 30 years, most passenger rolling stock in Britain has been owned by rolling stock companies (ROSCOs) and leased to train operators. While existing leasing agreements will remain in place, the new strategy makes clear that leasing will no longer be the automatic choice for future train fleets.
According to the government, leasing and maintenance costs currently amount to more than £4 billion annually, while figures from the Office of Rail and Road show rolling stock companies paid out more than £2.5 billion in dividends over the last decade.
Officials believe that, in some circumstances, outright public ownership could deliver significant savings for both taxpayers and fare-paying passengers.
A central objective of the strategy is to align rolling stock decisions with infrastructure planning and maintenance requirements.
GBR will oversee a coordinated approach to investment, ensuring new trains, infrastructure renewals, depots and maintenance programmes are planned together rather than separately.
The government argues this will improve reliability by enabling closer collaboration between infrastructure and train operations while reducing barriers that have historically existed between Network Rail and passenger operators.
The announcement follows the recent award of a £1 billion contract to Alstom to build a new fleet of battery-powered trains for the TransPennine Route Upgrade programme.
The investment is expected to secure hundreds of jobs at Alstom’s Derby facility and support thousands more throughout the wider supply chain.
Under the new strategy, GBR will also place greater emphasis on social value when awarding contracts, prioritising skills development, employment opportunities and support for UK businesses.
The government says successful contracts should provide long-term benefits to communities while helping strengthen the UK’s rail manufacturing capability.
The strategy also introduces the concept of "fleet families", which would see greater standardisation across train designs throughout the network.
Industry leaders believe a more standardised approach could reduce maintenance costs, improve fleet flexibility and provide passengers with a more consistent travel experience.
Future train fleets will also be expected to feature enhanced passenger information systems, improved accessibility and more reliable digital connectivity.
As part of rail decarbonisation plans, GBR intends to progressively replace diesel fleets with cleaner alternatives, with battery technology expected to play a growing role alongside continued electrification of the network.
The government says the strategy will provide greater visibility of future investment, allowing train manufacturers, suppliers and infrastructure contractors to plan with greater confidence.
By bringing together decisions on rolling stock, infrastructure and maintenance under a single organisation, ministers believe GBR can create a more efficient railway that delivers better value while supporting long-term industry growth.
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