The move is part of Government plans to overhaul the rail network and “put passengers first”.
Ministers say the transition to a publicly owned railway will improve reliability and boost economic growth by encouraging more people to use trains.
The move comes just days after one of the Government’s first major pieces of legislation, the Passenger Railway Services (Public Ownership) Act 2024, received Royal Assent, paving the way for a major shake-up of Britain’s railways.
The Government said the move will clamp down on unacceptable levels of delays, cancellations and waste seen under decades of failing franchise contracts.
Ministers also claim that moving train services back into public control will save up to £150m per year in fees alone by ensuring every penny is spent on services rather than private shareholders.
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‘An historic moment’
Heidi Alexander, Transport Secretary, said: “For too long, the British public has had to put up with rail services that simply don’t work. A complex system of private train operators has too often failed its users.
“Starting with journeys on South Western Railway, we’re switching tracks by bringing services back under public control to create a reliable rail network that puts customers first.
“Our broken railways are finally on the fast track to repairing and rebuilding a system that the British public can trust and be proud of again.”
The Transport Secretary has also announced that publicly run services will be managed by DfT Operator Limited – previously known as DfT Operator of Last Resort Holdings Limited (DOHL) – whose functions will eventually be integrated into Great British Railways (GBR).
The department expects the transfer of all passenger services operated under contracts with the Department for Transport to complete over the next three years.
Rail union TSSA has long campaigned for railways to be brought into the public sector, warning that privatisation was wasting taxpayer money and leading to an erosion of service.
Maryam Eslamdoust, TSSA’s general secretary, said: “This is an historic moment for the rail industry, marking the beginning of the end for the Tories’ failed privatisation experiment.
“The move will mean better value for taxpayers and better services for rail passengers. It recognises that railways should be run as a public service rather than as a cash cow for shareholders.
“We welcome the Labour Government’s recognition of the expertise and experience that railway staff – our members – possess are crucial to the changes they want to see in the sector. We look forward to working with them to deliver the 21st century railway that Britain’s workers deserve.”
