East Coast rail to remain in public hands as joint venture scrapped

A PLANNED public-private rail partnership on the East Coast Main Line has been scrapped.

The Department for Transport was due to launch a new body taking responsibility for both track and train operation this year, but has decided that train services should remain under full public control for at least another three years. It has given a new deal to London North Eastern Railway (LNER) to run trains until 2023, with the option to extend for a further two years.

LNER is owned and overseen by the DfT’s Operator of Last Resort.

When it began operating in June 2018, following the failure of Virgin Trains East Coast, it was given a two-year deal, due to expire on June 28.

A DfT spokeswoman said it would allow LNER to continue delivering improvements, including the Intercity Express

Programme, completing the rollout of Azuma trains and a “major timetable uplift” to increase the number of services and speed up journeys.

In March the DfT agreed to suspend rail franchise agreements until September to avoid train companies collapsing due to the coronavirus pandemic, at a cost of up to £3.5 billion.

The decision saw the Government take on the revenue and cost risk of train operation.

Shadow Rail Minister Tan Dhesi said: “Labour has long argued that public ownership of the rail network will provide better value for the taxpayer and for passengers. We welcome the Government conversion to this. However, coming out of lockdown they must go further.

“The rail sector needs support and funding and that is better provided if the franchises are brought in house.”