Labour’s pledge to renationalise railways ‘within its first term’

LABOUR will pledge to renationalise the railways if elected, in what the party will call the “biggest overhaul to our railways in a generation”.

A Labour government would expect to transfer rail networks to public ownership within its first term by folding existing private passenger rail contracts into a new body as they expire, Shadow Transport Secretary Louise Haigh will say at a launch event today.

The plan will nationalise the network “without the taxpayer paying a penny in compensation costs”, the party will say.

The Government’s own proposals for rail reform, published in a draft Bill in February, include the creation of a new public sector body named Great British Railways (GBR) to hold responsibility for rail infrastructure and awarding contracts to operate trains.

But a Labour government would create a “unified, publicly owned, accountable and arm’s length” version of GBR led by rail experts rather than Whitehall, Ms Haigh will say.

Labour also plans to establish a watchdog, the Passenger Standards Authority, to hold GBR to account.

Ms Haigh will say: “With Labour’s bold reforms, a publicly owned railway will be singlemindedly focused 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.”

The Government estimated in its 2021 reform plan that it could save £1.5bn annually after five years by ending inefficiency and fragmentation.

Labour says, citing its own analysis, that transitioning to public ownership could save money by cutting out franchise bidding costs, reducing the duplication of resources and lessening friction between operators.

The Government’s reform plans were based on recommendations from a review carried out by former British Airways chief executive Keith Williams. He said of Labour’s plans: “I welcome Labour’s intention, if they are elected, to take forward the substance of my recommendations to deliver a better railway for passengers and freight by creating a rail body with an integrated profit and loss account, at arm’s length from government.”