Commuter rail firms to be renationalised in 2025
Rail companies that serve London commuters will be renationalised by the government next year as part of a “major shake-up” of British railways. South Western Railways, C2C, and Greater Anglia will be the first operators that will be transferred to public ownership, the government has announced.
South Western Railways will be renationalised in May, followed by C2C in July, and Greater Anglia in the autumn of 2025. Avanti West Coast will also be brought back under public control but Transport Secretary Heidi Alexander said that it is a “problem at the moment,” the Evening Standard reported.
Avanti West Coast runs long-distance services along the West Coast Main Line from Euston to Birmingham, Liverpool, Manchester, and Glasgow. Despite its performance being criticised, it received a new three-year contract from the last government under the Tories in 2023.
According to industry figures, only 41.2% of Avanti’s trains arrived on time between April and June, the worst performance of any rail company in the country.
The previous government adopted “scorched earth” in its approach to union relations, Ms Alexander told Sky News. The finances of the rail industry, she said, were “very challenging” with the government subsidising half of the £25 billion cost of running railways. This meant that nationalisation may not reduce fares. A 4.6% rise in fares has already been announced for 2025 with Ms Alexander saying that she hopes to avoid causing a “death spiral” from cutting services to keep fares down.
The change will save up to £150 million annually in fees alone, ensuring money is spent on services and not on shareholders. But the transport secretary, when speaking on LBC, did not reveal the cost of renationalisation.
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