Labour Promises Major Shake-Up to UK Railways
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The Labour party has announced plans to bring the railways back into public ownership and establish the Great British Railways (GBR) organization, promising the biggest shake-up to the rail industry in a generation.
Shadow transport secretary Louise Haigh made the announcement in a speech, stating that the current “broken” model of the railways will be “swept away” if Labour forms the next government. The party’s proposed reforms include bringing routes back into public ownership, establishing a “best-price ticket guarantee” for travellers, and implementing automatic “delay repay” schemes. Additionally, Labour plans to make digital season tickets available across the network.
However, the Conservatives have criticized these proposals, claiming that Labour has no plan to fund them. In response, Sky News’ deputy political editor, Sam Coates, asked Ms Haigh how she plans to avoid the mistakes of the former national railway system, British Railways, which was privatized in the 1990s and had to compete for central government funding.
Ms Haigh acknowledged the “constrained public spending environment” but argued that the proposed reforms would result in “significant efficiencies and cost savings for the taxpayer”. She emphasized the need to move away from the current model, which she believes is a waste of taxpayers’ money.
The shadow transport secretary also mentioned the possibility of reinvesting some of the savings into the system, but clarified that there is no agreement in place with the shadow chancellor, Rachel Reeves, for all the savings to be reinvested.
GBR was first proposed in 2021, with the aim of simplifying the franchise system and rebuilding passenger numbers after the COVID pandemic. The organization would be responsible for track and stations, ticketing, timetables, and network planning. However, its establishment has faced continuous delays, and it has yet to become operational.
Labour has pledged to get GBR up and running if they win the next election, with some additional promises of their own. The party plans to end the “fragmentation, waste, and bureaucracy” of the current network by placing industry experts in charge of GBR, rather than government officials. It also aims to take charge of passenger lines when franchises expire, eventually leading to the entire passenger network being publicly owned.
Labour’s approach would avoid the need for taxpayers to cover compensation to private operators, which would be necessary if the railways were immediately renationalized. The party also plans to establish a new independent watchdog, the Passenger Standards Authority, to ensure GBR maintains high standards. Furthermore, Labour has committed to introducing a statutory duty for GBR to promote the use of rail freight, with the aim of reducing carbon emissions and lorry traffic.
These proposals have received support from Keith Williams, one of the experts behind the rail review, who recommended the creation of GBR three years ago. Mr. Williams believes that GBR will “deliver a better railway for passengers and freight” and contribute to economic growth, job creation, and improved connectivity.
However, Conservative Transport Secretary Mark Harper has criticized Labour’s plan, stating that it is “unfunded” and does not include any measures to improve services for passengers. He also highlighted the potential damage of Labour’s plan to reverse trade union legislation, which he believes will lead to “French style, wildcat strikes with no notice”. Mr. Harper also pointed out that the unions have welcomed Labour’s plans, as it would put them back in control.
