The government has revealed that South Western Railway will be the first rail company to be nationalised under Labour's plans to bring the railways back into public ownership. The state will take control of SWR in May, with C2C and Greater Anglia following suit in July and autumn 2025 respectively.
All three companies operate crucial commuter services in London. This development follows the recent Royal Assent given to the government’s Passenger Railway Services (Public Ownership) Act, marking the most significant overhaul of Britain's railways in decades, as reported by .
Labour believes this move will help alleviate the widespread delays and cancellations that have troubled the network's franchised operators in recent years. On Wednesday, it was claimed that nationalisation would save £150m annually in fees, without any additional cost to taxpayers.
However, these plans were thrown into doubt last week following the unexpected resignation of former Transport Secretary Louise Haigh due to revelations about a fraud conviction over ten years ago. Heidi Alexander, Haigh’s successor, commented: "For too long, the British public have had to put up with rail services which simply don’t work. A complex system of private train operators has too often failed its users."
She added: "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 repair and rebuilding a system that the British public can trust and be proud of again."
South Western Railway, owned by Firstgroup and MTR, is set for its first nationalisation. The railway operates commuter services from its Central London terminus at Waterloo, suburban routes in counties including Surrey, Hampshire and Dorset, and regional services across Devon, Somerset and Wiltshire.
When its contract ends in May, its services will now be under the control of the Department for Transport’s operator of last resort, the DOHL. Rail unions hailed the news as a "historic moment for the rail industry, marking the beginning of the end for the Tories’ failed privatisation experiment."
However, others in the industry are not confident it will solve the wide-ranging issues that have hamstrung the º£½ÇÊÓƵ’s beleaguered railway sector, particularly since Covid-19 wiped out passenger numbers.
Andy Bagnall, chief executive of lobby group Rail Partners, described SWR’s nationalisation as a "watershed moment."
But he added: "Simply changing who runs the trains won’t deliver more reliable and affordable services for passengers, reduce subsidy for taxpayers or grow rail freight."
"The key to both improving performance and holding down fares is restoring the railway to financial sustainability. It is counter intuitive to start removing private sector operators from the system, with their track record of delivering growth to reduce subsidy, when the question of what will replace them long-term won’t be answered until further rail legislation is introduced."
Dominic Booth, chief executive of Transport º£½ÇÊÓƵ, which runs Greater Anglia, has voiced concern over staffing levels at the DOHL, and warned too hasty a transition could prove too much for the state-owned body. "We are surprised to see Greater Anglia, the best train operator for both the passenger and the taxpayer, on the list of those first to be nationalised," he said.
"That said, we look forward to constructive dialogue with government at the appropriate time."
The Department for Transport expects all franchised operators to be brought under public ownership over the next three years.
