In a speech this morning, the Shadow Transport Secretary has pledged to shake up rail by nationalising the nation’s railway.
This would come through the formation of the long-delayed Great British Railways, which was proposed by Boris Johnson’s government in 2021, and Labour is expected to publish a detailed roadmap for how the party would take the rail network into public ownership within its first term, should it be elected into government in the next general election.
According to the Labour Party, renationalising the railway would bring cuts in waste, as well as reducing shareholder dividends, to save £2.2 billion. Alongside this, a watchdog would be established to keep Great British Railways in check and ensure that passengers are being offered the best ticket prices, automatic delay repay, and digital season tickets across the entire network.
Shadow Transport Secretary Louise Haigh said:
“With Labour’s bold reforms, a publicly owned railway will be single-mindedly focused on delivering for passengers and will be held to account on delivering for passengers and will be held to account on delivering reliable, safe, efficient, accessible, affordable, and quality services.
“Labour’s detailed plans will get our railways back on track; driving up standards for passengers, bringing down costs for taxpayers, driving growth and getting Britain moving.”
Whilst the plans have been supported by Keith Williams, the expert that led the rail review which recommended the establishment of Great British Railways, they have drawn some criticism from within the industry. Rail Partners, the organisation that brings the private railway sector together to benefit passengers, responded to the news by stating that nationalisation is a ‘political rather than a practical solution’
Andy Bagnall, Chief Executive of Rail Partners, commented:
“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 around Europe.”
Bagnall also touched on the role of the private sector within rail, saying:
“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...
“… 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 prolonger and messy transition at a time when we need all parts of the railway to pull together for passengers and freight customers.”
This move isn’t the first we’ve seen of Labour getting in major rail projects, as Andy Burnham and Steve Rotheram – Mayors of Manchester and Liverpool – have outlined how the government is open to working with them to improve the rail network between the two cities.
After pledging to improve the connections between Manchester and Liverpool through the Liverpool-Manchester Railway Board, which would bring the public and private sector together, the government is now open to considering the options that can bring such improvements. Transport Minister Huw Merriman wrote to the Liverpool Mayor, and Cllr Liam Robinson who is Leader of Liverpool City Council, saying:
“I am committed to continuing to work with yourselves and other local leaders toward identifying the best solutions for this corridor.
“I can confirm that we are willing to look at alternatives to using the West Coast Main Line into Liverpool and station options as part of the next phase of work once the high-level strategy for this corridor is confirmed.”
Should these plans go ahead, it would open the door further to the delivery of a new high-speed station into Liverpool. Discussions will continue after May’s local elections, should Burnham and Rotheram be re-elected.
Image credit: iStock
