Britain's privately owned train operators could start taking back control of their networks as early as July 5 if Labor wins the general election.
Boris Johnson's vision for a new Great British Railway to replace the privatized concession system has been halted by the dissolution of Parliament due to a snap election. The railway reform bill, which was under committee review, was cancelled.
If Labor emerges victorious and implements its proposed rail reforms, the future of private sector involvement in the national network may be uncertain. According to industry publication Railnews, “There is now no longer any doubt that existing National Rail passenger contracts in England will be terminated at the first available ‘stop point’ and earlier if the operator fails to deliver.”
There are signs that private train operators may consider returning their contracts to the Department for Transport ahead of schedule, pre-empting Labour's policies. This move could avoid uncertainty and be in line with the transition to the new integrated railway authority. In recent years, failed operations have seen several train networks, including the LNER, Southeast, TransPennine and Northern, return to government control under OLR Holdings, the operator of last resort.
Labor has pledged to create a new integrated railway authority to oversee the industry. This body, which is seen as a more directive institution compared to the Tories' “guiding mind”, will run train networks directly rather than through private sector concessions.
Rather than immediate wholesale renationalisation, Labor may take control of the old concessions as their current contracts expire. However, given the likelihood of no long-term role in the new system, train companies may choose to end their contracts early, handing control back to the government.
In an interesting development, Hugh Merriman, the Tory railways minister, could play a role in Labour's railway reforms. Merriman, a respected former chair of the cross-party transport select committee, has resigned as a Tory MP, sparking speculation about his potential senior position on the new integrated rail authority under a Labor government.
