Taking Train Operation into public ownership - Govt planning from 4.12.2024

[whole diary]

[CyclingSid]

The first of many?
https://www.bbc.co.uk/news/articles/ceqlnrgjr79o
From my lowly point of view SWR^» (South Western Railway - about) ran a good service on Reading surburban and Wessex services. My beef tended to be with NR^» (Network Rail - home page) forever digging it up and restricting my travel.

[Chris from Nailsea]

From the BBC^» (British Broadcasting Corporation - home page):

South Western Railway will be the first rail operator renationalised by the Labour government, according to a report.

Labour has pledged to renationalise rail services as operator franchises come to an end, and South Western's contract finishes in May 2025.

Control of the railway will be handed to the operator of last resort, the body which runs renationalised rail services, the Financial Times reported.

The government passed a law near the end of November to let it take rail contracts back into public ownership.

The government plans to set up a new arms length body, Great British Railways (GBR^▸ (Great British Railways)), which will take over service contracts currently held by private firms as they expire in the coming years.

The plan is for GBR to operate services and set timetables, and eventually take over responsibility for maintaining and improving rail infrastructure from Network Rail.

However, some have criticised Labour's plans, arguing that public ownership is unlikely to make much difference unless it is paired with investment in the railways.

Responsibility for running train services was handed to private companies during the 1990s, and since then there has been a boom in rail usage.  But a number have faced criticism over fares and reliability, with critics saying privatisation has led to an inefficient and fragmented system.

Labour made it a manifesto pledge to renationalise most rail services within five years.

During the coronavirus pandemic, the government in effect took control of the railways.

Most train companies in England moved onto contracts where they get a fixed fee to run services, and the taxpayer carries the financial risk.

Four major operators - East Coast Mainline, TransPennine, Northern and South Eastern - have been taken under public control and are being run by the government's operator of last resort.

Transport for Wales was brought under Welsh Government control in 2021, and Scotrail was taken over by the Scottish Government the following year.

South Western Railway has more than 1,500 services scheduled to run per weekday in south west London and the south of England.  It operates across a huge area of southern England and East Anglia and is a key commuter service into London.

[Chris from Nailsea]

Thanks for posting, CyclingSid: we both posted at the same time, so I've merged our posts here.  CfN. 

[ChrisB]

I'm surprised - there are 3 other TOCs^▸ (Train Operating Company) whose break clauses expired this autumn & Chiltern whose break is at the end of March 2025. So SWT^▸ (South West Trains) being the first are unlucky.....

[grahame]

From the BBC^» (British Broadcasting Corporation - home page)

Three rail operators will be renationalised by Labour next year after it passed a law allowing it to do so.

South Western Railways will be renationalised in May 2025, C2C in July 2025, and Greater Anglia in autumn 2025, the transport department has confirmed.

[grahame]

And an interesting follow up in The Standard which includes an interview with Heidi Alexander - there's a lot there - quotes to follow.

[ChrisB]

POssibly need to amend the subject line & move board?

[grahame]

And an interesting follow up in The Standard which includes an interview with Heidi Alexander - there's a lot there - quotes to follow.

I have added the text into the searchable ("deep search" box above) member's mirror:
http://www.firstgreatwestern.info/mirror/renat_ha_20241204.pdf

I note lots of interesting commentary such as
 

Ms Alexander said she wanted to avoid creating a “death spiral” by cutting services in a flawed bid to hold down fares.

That is a relief.

[grahame]

POssibly need to amend the subject line & move board?

Yep, that'll be happening and (in railway timescales) very quickly

[eightonedee]

Quote from: grahame on Today at 08:57:59
And an interesting follow up in The Standard which includes an interview with Heidi Alexander - there's a lot there - quotes to follow.

Hmm - reading that, it mostly seems to consist of the various parties spouting predictable slogans at one another. Possibly the most significant figures are that the claimed £150m in "dividends" (to ultimate shareholding company? paid by holding company to investors? estimated operating profits of actual company operating the franchise?) is but 0.06% of the £25bn annual cost of running the railways.

Also of note - "about" half the cost comes from public subsidy. So the saving to the tax-payer from ending the ToC system is likely to be about 0.12% - less I'd guess than the margin in the negotiations between HM Treasury and DfT^» (Department for Transport - about) over the annual subsidy and how inflation (or savings) are to be reflected in next year's settlement. Has the Treasury committed to keeping this money in the railway system? What part of it will go in GBR^▸ (Great British Railways)'s overheads?

[grahame]

I'm ... looking to get a list of where we stand on all the TOCs^▸ (Train Operating Company) and reverts to nationalisation:

2025 Abellio East Anglia Limited 2021 rail contract
tba  Abellio East Midlands Limited 2022 rail contract
tba  Chiltern Railway Company Limited 2021 rail contract
tba  First Greater Western 2022 rail contract
2025 First MTR South Western Trains Limited 2021 rail contract
GONE London North Eastern Railway 2020 OLR rail services contract
GONE Northern Railway 2022 OLR rail services contract
GONE South Eastern Railways 2021 OLR rail services contract
tba  Thameslink, Southern and Great Northern 2022 rail contract
GONE TransPennine Express Railways 2023 OLR rail services contract
2025 Trenitalia c2c Limited 2021 rail contract
tba  West Coast Partnership 2023 rail contract
tba  West Midlands Trains Limited 2021 rail contract
tba  XC^▸ (Cross Country Trains (franchise)) Trains Limited 2023 rail contract

To add ... Transport for Wales, ScotRail, Caledonian Sleeper and TransLink already in Govt. hands

[TonyK]

At long last! Trains will be driven, managed and cleaned by civil servants again, which should guarantee a reliable service around the clock on every day bar 25 December.

Being serious, though, this should simplify negotiations with unions at least slightly, as there will eventually be one employer to deal with, although it's going to be a few years before full implementation. There will presumably be cuts to back-office numbers as services such as HR^▸ (Human Resources), payroll, and uniform design are amalgamated. I don't suppose we'll notice much difference for quite a while.

[Surrey 455]

I'm ... looking to get a list of where we stand on all the TOCs^▸ (Train Operating Company) and reverts to nationalisation:

2025 Abellio East Anglia Limited 2021 rail contract
tba  Abellio East Midlands Limited 2022 rail contract

Not called Abellio anymore. I believe a management buy out earlier this year created Transport UK^▸ (United Kingdom). However this page at https://www.greateranglia.co.uk/about-us/company-information refers to both Abellio East Anglia Limited and Transport UK East Anglia Limited

[TaplowGreen]

Being serious, though, this should simplify negotiations with unions at least slightly, as there will eventually be one employer to deal with, although it's going to be a few years before full implementation. There will presumably be cuts to back-office numbers as services such as HR^▸ (Human Resources), payroll, and uniform design are amalgamated. I don't suppose we'll notice much difference for quite a while.

Pay harmonisation talks on that basis with one employer will certainly be interesting, with the Unions no doubt campaigning for the rates to be aligned with the highest amounts currently paid for each grade across franchises.

[grahame]

I'm ... looking to get a list of where we stand on all the TOCs^▸ (Train Operating Company) and reverts to nationalisation:

2025 Abellio East Anglia Limited 2021 rail contract
tba  Abellio East Midlands Limited 2022 rail contract

Not called Abellio anymore. I believe a management buy out earlier this year created Transport UK^▸ (United Kingdom). However this page at https://www.greateranglia.co.uk/about-us/company-information refers to both Abellio East Anglia Limited and Transport UK East Anglia Limited

Ah - OK; I got my list / details from the DfT^» (Department for Transport - about) website list ... in the vague hope it might have been reasonably current!