The Labour government is prioritising legislation to nationalize the UK railways, with plans to take over some of the busiest operators within months. According to Financial Times analysis, nearly 75% of train journeys in the UK will be on nationalised lines by July 2025. Transport Secretary Louise Haigh emphasised the urgency of the Passenger Rail Services Public Ownership Bill, which will be introduced to the House of Commons. This bill aims to address the broken transport system and enhance train services across the country.
The proposed legislation seeks to complete the renationalisation of the railways, building on the previous Conservative administration's nationalisation of about 40% of services over the past decade due to operator failures. Department for Transport officials plan to expedite this process, although the bill's progress could be delayed by the upcoming recess and other parliamentary debates.
Under the new bill, expiring contracts with private train operators will be returned to government control. Industry leaders anticipate that break clauses in some contracts will be used to expedite this transition, with several major franchises up for renewal in 2025. If these transitions occur as planned, state-controlled trains will account for a significant majority of passenger travel distances by mid-2025.
Industry executives expressed concerns about the rapid scale of nationalisations and the capacity of the Operator of Last Resort (OLR) to manage the increased workload.
Haigh also indicated that struggling operators could be nationalised sooner if they fail to meet performance standards, specifically mentioning Avanti on the West Coast mainline. Long-term plans include establishing Great British Railways (GBR) to oversee the rail system, though this will require additional legislative approval and time to implement.
