The UK has passed the Passenger Railway Services (Public Ownership) Act 2024, marking a significant shift in the country’s rail transportation system. The legislation allows the government to gradually bring rail contracts back into public ownership, addressing long-standing criticisms of the privatized railway network.
The government plans to establish Great British Railways (GBR), a new arms-length body that will progressively take over service contracts from private firms as they expire. Ultimately, GBR is expected to assume responsibility for maintaining and improving rail infrastructure, currently managed by Network Rail.
The current railway system originated in the 1990s when train services were privatized, leading to a substantial increase in rail usage. However, the privatization model has faced significant criticism for creating an inefficient and fragmented system, with ongoing concerns about high fares and unreliable services.
The move towards public ownership has been building for several years. During the COVID-19 pandemic, the government effectively took control of the railways, with most train companies in England moving to fixed-fee contracts where taxpayers bear the financial risk. This transition set the stage for more comprehensive changes.
Several rail services have already been brought under public control. Four major operators – East Coast Mainline, TransPennine, Northern, and South Eastern – are currently being run by the government’s operator of last resort. Additionally, Transport for Wales was brought under Welsh Government control in 2021, and Scotrail was taken over by the Scottish Government in 2022.
Labour’s manifesto pledge to renationalize most rail services within five years has been a driving force behind this legislative change. The new act represents a significant step towards fulfilling that commitment and addressing long-standing issues in the rail transportation sector.
South Western Railway, which operates more than 1,500 services per weekday across southern England and is a crucial commuter service into London, is among the services that will be affected by these changes.
The legislation signals a potential return to a more centralized and potentially more coordinated railway system. By bringing rail services under public control, the government aims to improve efficiency, reduce fragmentation, and potentially address concerns about pricing and service reliability that have plagued the privatized system.
While the full implementation of the plan will take place over several years as existing private contracts expire, the Passenger Railway Services (Public Ownership) Act 2024 represents a landmark moment in UK transportation policy. It reflects a growing recognition that the privatization model implemented in the 1990s may not have delivered the expected benefits and that a more integrated approach to rail services could better serve the public interest.
