(qlmbusinessnews.com Thurs. 5th Dec, 2024) London, UK —
Rail Fares to Increase Despite Labour’s Public Ownership Plans
Labour’s plans to bring three more rail operators under public control next year are unlikely to result in reduced fares for passengers, despite promises of improved reliability and efficiency.
Transport Secretary Heidi Alexander confirmed that South Western Railway will be renationalised in May 2025, followed by c2c in July and Greater Anglia later in the autumn. These changes are part of Labour’s broader strategy to bring rail services back under government ownership as private franchises expire.
The move is made possible by the recently enacted Passenger Railway Services (Public Ownership) Act 2024, fulfilling a key Labour manifesto pledge. A new public body, Great British Railways (GBR), is being set up to oversee the rail network, taking over from private operators and eventually absorbing Network Rail’s responsibilities for infrastructure maintenance.
Rising Fares Spark Criticism.
Despite these renationalisation efforts, rail fares are set to rise by 4.6% in March 2025, following the latest Budget. Alexander described the increase as the “lowest absolute rise in three years,” but acknowledged public frustration over costs. While she argued passengers are willing to pay more for better service, she admitted that significant improvements in performance are necessary to justify higher prices.
Critics have questioned whether public ownership alone can deliver the transformative changes needed. Andy Bagnall, chief executive of Rail Partners, representing private operators, argued that “simply changing who runs the trains won’t make services more reliable or affordable.”
The State of UK Rail.
The UK rail network has faced ongoing challenges, including two years of strike action and concerns over inefficiency, delays, and cancellations. Under Labour’s new policy, the government hopes renationalisation will save £150 million annually in fees, reduce service disruptions, and improve reliability.
Alexander cited improvements achieved by the publicly run LNER, where cancellations due to staff shortages have been significantly reduced, as evidence of the potential benefits of public control.
Still, concerns remain about whether renationalisation will address underlying issues in the system. Critics point out that without new investment, public ownership may not resolve problems such as ageing infrastructure or overcrowding on key commuter routes.
South Western Railway, which operates over 1,500 daily services in the south of England, c2c, and Greater Anglia are among the operators targeted for transition to public control. These moves follow the earlier renationalisation of operators like TransPennine and Northern, and the transfer of Transport for Wales and ScotRail to government ownership in 2021 and 2022, respectively.
As Labour presses ahead with its plans, the debate over the future of UK rail continues to gather steam, with questions about affordability, reliability, and long-term investment still on the table.
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