The Department for Transport (DfT) introduced to Parliament a legislation to bring UK railways into public ownership, marking the biggest overhaul of the sector in a generation.
After years of unacceptably low performance, the legislation is a landmark change that will allow the government to bring rail passenger services back into public ownership, amending legislation to make appointing a public sector operator the default, rather than a last resort, DfT says.
“This is a clear signal of intent. Rail reform is at the heart of this King’s Speech. Our transport system is broken, but the bill will pave the way for better trains that work for everyone, no matter where you live. After years of inefficiency, we’re twoweeks in and the first steps towards rail reform are being taken today. Change starts now,” Transport Secretary, Louise Haigh, said.
The privatisation model is failing passengers day in, day out and publicly-owned passenger rail will put an end to years of waste and fragmentation on our railways and establish a more efficient, higher quality and reliable service.
The new laws will ensure rail services are run with the passengers put first, benefiting from better and faster services on UK railways. With 5 bills, transport has the biggest legislative agenda, with plans to deliver the biggest overhaul to transport in a generation.
The transport bills set out in the King’s Speech will be essential to delivering the Prime Minister’s missions for government and will be mission critical for kickstarting economic growth, unlocking opportunities across the country, and accelerating to net zero.
The Passenger Railway Services (Public Ownership) Bill amends specific provisions in the Railways Act 1993 to allow passenger service operations to be transferred into public ownership when current national rail contracts end. The bill supports the government’s manifesto commitment to transferring passenger rail service operations into public ownership as part of a broader plan for the railways.
The bill makes provision for passenger railway services to be provided by public sector companies instead of by means of franchises and proposes the prohibition on franchise extensions and new franchises, which also applies to the Welsh and the Scottish Ministers which may not enter into a franchise agreement.
An exception can take place in accordance with section 30A – temporary continuation of existing franchises – which applies where the Secretary of State is the appropriate franchising authority in relation to a franchise agreement and the Secretary of State is satisfied that it will not be reasonably practicable to provide, or secure the provision of, the franchised services under the section when the existing agreement comes to an end. According to 30A (3) the Secretary of State may enter into the new agreement only if the franchise term in relation to the new agreement is to begin immediately after the end of the franchise period in relation to the existing agreement, and the franchisee in relation to the new agreement is to be the same person as the franchisee in relation to the existing agreement.
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