Rail unions and campaigners welcome Heidi Alexander’s move to look at publicly owned trains
'A big step forward for our railway'
Labour members are currently gathering in Liverpool for the party’s annual conference. Today, delegates heard speeches from three of the most important figures in the government – the chancellor, home secretary and foreign secretary.
They also heard from the transport secretary Heidi Alexander. While her speech hasn’t hit the headlines in the same way as her colleagues, it did contain a major policy announcement.
In her speech, she said that the government would explore public ownership of the trains that run on Britain’s railways.
Despite the government currently bringing rail operators into public ownership, the trains that these operators run are not owned by them. Instead, they are leased by rolling stock companies (ROSCOs), who are regularly accused of taking substantial sums of money out of the system.
Alexander told the conference: “For nearly three decades, most passenger trains haven’t been owned by the train operators themselves, but by rolling stock companies known as ROSCOs. ROSCOs bought the train and leased them back to operators.
“The train operating companies saved money upfront, but it also brought significant long-term costs. In 2024, franchised train operators spent over £4bn leasing and maintaining trains they didn’t own – £4bn, that is about a third of the total day-to-day running costs of operating railway services.
“Every ROSCO contract includes financing and transaction costs and investment returns, costs which are ultimately borne by taxpayers and passengers.
“So, as we set up Great British Railways, we will explore whether the state can directly own the new trains we order. Because I say again conference, who should the railway serve? If GBR owning trains would best serve taxpayers and passengers. Then we should do it.”
The announcement has been welcomed by transport unions and by rail campaigners.
Dave Calfe, the general secretary of train drivers union ASLEF said: “The Secretary of State for Transport announced, this afternoon, the future of rolling stock on Britain’s railway network. She was crystal clear that public ownership is now a real option for new rolling stock.
“This is a big step forward for our railway. Because, at the moment, the train operators lease their trains at huge expense from foreign-owned rolling stock companies. Billions of pounds haemhorrage from the network in profits and dividends which could – and should – be invested in our railway and help keep fares for passengers down. The RoSCos took £2.9 billion out of our system in the last five years alone!
‘”Now Labour is getting our railway back on track. First by bringing the passenger companies back into public ownership and now by promising to explore the best way to buy rolling stock going forward with GBR.
“We know the best way is by buying our own trains, not by leasing them. Steve Rotheram has proved that on Merseyrail.
“That’s why we welcome Heidi’s announcement today – doing the right thing for Britain’s railways.”
Meanwhile, anti-privatisation group We Own It also welcomed the news. Cat Hobbs, We Own It’s director, said: “It’s absolutely fantastic news that the government is now making it possible to take back our trains. Other countries own their own trains and we should do the same. This is a super smart decision for the long term future of the railway.
“Privatised rolling stock is an unbelievable rip off – ownership of the trains is the most profitable part of the railway. We need to own these assets directly so that passengers can benefit with money going in instead of leaking out.
“Rolling stock ownership is key to making public ownership of our railway successful. The government recognises that rail privatisation has failed and it’s excellent to see failing Avanti West Coast being set to come into public hands.
“The government now has a historic chance to set up our railway for success by updating the Railways Bill. This legislation currently in the House of Lords must make it easy for all trains to be owned by the public.”
Chris Jarvis is head of strategy and development at Left Foot Forward
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