Trains could be publicly owned under Great British Railways – Transport Secretary
New trains could be publicly owned under Great British Railways to reduce costs and “best serve taxpayers”, Transport Secretary Heidi Alexander said.
The Rolling Stock and Infrastructure strategy will set out a new policy for future train procurements.
A case-by-case approach will be taken when considering private investment, leasing, or public ownership for new trains, the Government said.
In her speech at Labour Party conference in Liverpool on Monday, Ms Alexander pledged to “address the hidden challenges that hold the railway back”.
She added: “For nearly three decades, most passenger trains haven’t been owned by the train operators themselves, but by rolling stock companies known as Roscos.
“Roscos bought the train and leased them back to operators.
“The train operating companies saved money upfront, but it also brought significant long-term costs.
“In 2024, franchised train operators spent over £4 billion leasing and maintaining trains they didn’t own – £4 billion, that is about a third of the total day-to-day running costs of operating railway services.
“Every Rosco contract includes financing and transaction costs and investment returns, costs which are ultimately borne by taxpayers and passengers.
“So, as we set up Great British Railways, we will explore whether the state can directly own the new trains we order.
“Because I say again conference, who should the railway serve? If GBR owning trains would best serve taxpayers and passengers. Then we should do it.”
The announcement comes after the Government set a date for the nationalisation of Avanti West Coast services in March next year.
Ms Alexander said the move to public ownership follows “years” of Avanti “underperforming, with passengers left “paying the price”.
Dave Calfe, general secretary of train drivers union Aslef, welcomed the announcement as a “big step forward” for the railways.
He said: “At the moment, the train operators lease their trains at huge expense from foreign-owned rolling stock companies.
“Billions of pounds haemorrhage from the network in profits and dividends which could – and should – be invested in our railway and help keep fares for passengers down.
“Now Labour is getting our railway back on track. First by bringing the passenger companies back into public ownership and now by promising to explore the best way to buy rolling stock going forward with GBR.
“We know the best way is by buying our own trains, not by leasing them.”
Published: by Radio NewsHub