Transport secretary reveals UK state-owned rail company to be launched in two years

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The RMT union has said Labour needs to go further and bring the rest of the railway into public ownership

The UK’s railways are set for a major overhaul, with Transport Secretary Heidi Alexander confirming that state-owned rail company Great British Railways (GBR) will be launched in early 2027.

The transport secretary has said GBR, a new public body that will bring together Network Rail and train operators, will be a new powerful public body to manage the rail infrastructure and train operations and stop the “total mess” that currently exists.

Alexander said: “Passengers have put up with broken railways for far too long. This landmark reform will sweep away decades of failure, creating a Great British Railways passengers can rely on.”

Labour’s Passenger Railway Services Bill will bring passenger train services into public ownership, but private freight and rolling stock companies will not be renationalised.

RMT general secretary Mick Lynch has said that the creation of GBR is a “welcome first step” and will “end the disastrous fragmentation of our railway and create a unified network”. 

However, he said: “We must not forget that the profiteering of these companies is just the tip of the iceberg”. 

“The rail industry is riddled with inefficiency and widespread profiteering that extends far beyond the train operators.”

Lynch said that if the government is serious about cutting fares for passengers, the launch of GBR  “should be the moment to bring the rest of our railway back into public ownership—taking on the rolling stock leasing racket and ending the rampant outsourcing of key railway operations to the private sector”.

The government has launched a consultation on plans for a new passenger watchdog, fare reforms, and more devolved control over rail services.

The consultation states that the private sector will continue to play “a key role” and that GBR will be required to promote use and investment in the rail network by private freight operators. 

Asked why it will take until 2027 to set up GBR, Alexander said:  “The passage of legislation in Parliament, from presenting a bill through to it getting Royal Assent, normally takes something between six months and a year. I have to consult, because these are very significant structural changes to the way in which the railway runs.”

Image credit: SavageKieran – Creative Commons

Olivia Barber is a reporter at Left Foot Forward

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