TransPennine Express will not have its contract renewed or extended, the government has announced, after “months of… continuous cancellations”.
Transport Secretary Mark Harper has said that from 28 May, TransPennine Express will be brought into operator of last resort – essentially running the network on behalf of the government.
Its services cover northern England and also run in parts of Scotland.
Announcing the change, the government said: “The decision follows months of significant disruption and regular cancellations across TransPennine Express’s network, which has resulted in a considerable decline in confidence for passengers who rely on the trains to get to work, visit family and friends and go about their daily lives.”
According to the government, this is now the fourth railway to be brought under government control – following the East Coast Mainline in June 2018, Northern Rail in March 2020 and London and South Eastern Railway in October 2021.
The process is part of the powers given to the government under the legislation which privatised the railways in 1993.
More on Rail
Related Topics:
Recent figures from the Office of Road and Rail show that TPE cancelled an average of one in six services in March this year.
It had been impacted by drivers no longer volunteering to work paid overtime shifts – but the government said there were also issues with “a backlog of recruitment and training drivers [and] reforming how the workforce operates”.
Mr Harper said: “In my time as transport secretary, I have been clear that passenger experience must always come first.
“After months of commuters and Northern businesses bearing the brunt of continuous cancellations, I’ve made the decision to bring TransPennine Express into operator of last resort.”
Mr Harper added that the decision was not a “silver bullet” to “instantaneously fix a number of challenges” – including drivers at the Aslef union who are “preventing” TPE from running a full service.
“We have played our part, but Aslef now need to play theirs by calling off strikes and the rest day working ban, putting the very fair and reasonable pay offer to a democratic vote of their member,” the secretary of state added.
Image: The network had been plagued with delays
Government running TransPennine not a great look for levelling up
TransPennine Express is the latest franchise to be brought under public control, the government says only temporarily.
But it follows Southeastern, in 2021, after years of poor performance, Northern Rail in 2020, and LNER in 2018 after Virgin and Stagecoach could no longer make payments, now run by the operator of last resort.
For Labour – which has cheered the decision – it vindicates the policy they’ve announced of bringing all franchises into public hands as their contracts end, although some have many years to run.
The government say action by train drivers union Aslef, which has refused to allow overtime, has not helped. Rishi Sunak warned TransPennine operator FirstGroup they might lose the contract back in January, with Avanti West Coast also reported to be at risk.
The railways have not recovered from the pandemic in terms of passenger numbers, increased sick days and a backlog of training – as well as sustained industrial action.
Ministers say they are acting to help passengers. But with the government committed to levelling up and improving the connectivity of Northern cities – and Northern Powerhouse Rail already scaled back – it’s not the sign they wanted to send.
TPE had been operated by FirstGroup, and it too has sought to blame “challenging industrial relations” for the disruption.
A statement from the company said: “Following the introduction of an agreed recovery plan in February 2023, cancellations have fallen by approximately 40% and will continue to do so as more drivers become available over the next few months.
“The group is disappointed by the decision not to extend the national rail contract for TPE, given the investment and improvements we have made to the service over the years, which resulted in growing annual passenger numbers from 14m in 2004 to more than 29m before the pandemic.”
Labour has used the development to call for renationalisation of the railways.
Shadow business secretary Jonathan Reynolds – who is the MP for Stalybridge and Hyde in Greater Manchester – told Sky News that today’s actions reinforce his party’s plan to bring railways back into public ownership when current contracts expire.
And shadow transport secretary Louise Haigh said: “After months of needless damage, the Tories have finally accepted they can no longer defend the indefensible.
“But this endless cycle of shambolic private operators failing passengers shows the Conservative’s rail system is fundamentally broken.”
The action has been welcomed by MPs representing constituencies impacted by disruption to the services across political divides.
David Mundell, the Tory MP for Dumfriesshire in southern Scotland said: “Having lobbied for this outcome, I obviously welcome it. The service provided(or not) for my constituents at Lockerbie has been totally unacceptable and I had no confidence it would improve.”
Andy McDonald, the Labour MP for Middlesbrough on Teesside, said: “At last! Why this government allowed this miserable service to limp on so long is bewildering.
“But thank goodness they’ve eventually listened to what people in the North have been saying for years.”
Tracy Brabin, the Labour mayor of West Yorkshire, said the decision was “absolutely right” – and that she is looking forward “to hearing how the new operator intends to improve services”.
An industry body has warned that the equivalent of more than one pub a day is set to close across Great Britain this year.
According to the British Beer and Pub Association (BBPA), an estimated 378 venues will shut down across England, Wales and Scotland.
This would amount to more than 5,600 direct job losses, the industry body warns. It has called for a reduction in the cumulative tax and regulatory burden for the hospitalitysector – including cutting business rates and beer duty.
The body – representing members that brew 90% of British beer and own more than 20,000 pubs – said such measures would slow the rate at which bars are closing.
BBPA chief executive Emma McClarkin said that while pubs are trading well, “most of the money that goes into the till goes straight back out in bills and taxes”.
“For many, it’s impossible to make a profit, which all too often leads to pubs turning off the lights for the last time,” she said.
“When a pub closes, it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy.”
She urged the government to “proceed with meaningful business rates reform, mitigate these eye-watering new employment and EPR (extended producer responsibility) costs, and cut beer duty”.
“We’re not asking for special treatment, we just want the sector’s rich potential unleashed,” she added.
The government has said it plans to reform the current business rates system, saying in March that an interim report on the measure would be published this summer.
From April, relief on property tax – that came in following the COVID-19 pandemic – was cut from 75% to 40%, leading to higher bills for hospitality, retail and leisure businesses.
The rate of employer National Insurance Contributions also rose from 13.8% to 15% that month, and the wage threshold was lowered from £9,100 to £5,000, under measures announced by Rachel Reeves in the October budget.
Donald Trump has revealed a list of more nations set to face delayed ‘liberation day’ tariffs from 1 August.
He has threatened tariffs of 30% on Algeria, 25% on Brunei, 30% on Iraq, 30% on Libya, 25% on Moldova and 20% on the Philippines. Sri Lanka was later told it faced a 30% duty.
Letters setting out the planned rates – and warning against retaliation – are being sent to the leaders of each country.
They were the latest to be informed of the president‘s plans after Japan and South Korea were among the first 14 nations to be told of the rates they must pay on their general exports to the US from 1 August.
The duties are on top of sectoral tariffs, covering areas such as steel and cars, already in place.
Mr Trump further warned, on Tuesday, that a 50% tariff rate on all copper imports to the US was looming.
More on Tariffs
Related Topics:
He has also threatened a 200% rate on pharmaceuticals and is also expected to take aim at all imports of semiconductors too.
The European Union, America’s largest trading partner in combined trade, services and investment, is expected to get a letter within the next 48 hours unless further progress is made in continuing talks.
Please use Chrome browser for a more accessible video player
2:49
Who will be positively impacted by the UK-US trade deal?
The bloc, which Mr Trump has previously claimed was created to “screw” the US, has been in negotiations with US officials for weeks and working to agree a UK-style truce by the end of the month.
The EU has retaliatory tariffs ready to deploy from 14 July but it is widely expected to delay them until such time that any heightened US duties are imposed.
Please use Chrome browser for a more accessible video player
2:45
Trump to visit UK ‘in weeks’
It remains hopeful of a deal in the coming days but European Commission president Ursula von der Leyen told the European Parliament: “We stick to our principles, we defend our interests, we continue to work in good faith, and we get ready for all scenarios.”
While the UK’s so-called deal with Mr Trump is now in force, it remains unclear whether steelmakers will have to pay a 50% tariff rate, deployed by the US against the rest of the world, as some final details on an exemption are yet to be worked out.
The value of its shares has risen by 409,825% since its market debut in 1999.
Its status has been cemented thanks to the rush for AI technology – suffering several wobbles along the way – but nothing significant when you refer to the percentage rise of the past 26 years.
More on Nvidia
Related Topics:
The most recent pressures have come from the emergence of the low-cost chatbot DeepSeek and concerns for global AI demand as a result of Donald Trump’s trade war hitting growth.
Financial markets have been taking a more risk-on approach to the trade war since the delays to “liberation day” tariffs in April.
It’s explained by a market trend that’s become known as the TACO trade: Trump always chickens out.
Image: The milestone is reported by Sky’s US partner CNBC, seen on screens at the New York Stock Exchange. Pic: Reuters
It has helped US stock markets post new record highs in recent days.
The wave of optimism is down to the fact that the president is yet to follow through with the worst of his threatened tariffs on trading partners.
Corporations are also yet to report big hits to their earnings – a fact that is also propping up demand for shares.
If Mr Trump does go all-out in his trade war, as he has now threatened from 1 August, then that $4trn market value for Nvidia – and wider stock markets – could be short-lived, at least in the short term.
But market analysts believe Nvidia’s value has further to go.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said of its meteoric rise: “Once known for powering video games, NVIDIA has transformed into a foundational player in AI infrastructure.
“Its high-performance chips now drive everything from natural language processing to robotics, making them essential to training and deploying advanced AI models.
“Beyond hardware, its full-stack ecosystem – including software platforms and developer tools – helps companies scale AI quickly and efficiently. This end-to-end approach has positioned Nvidia as a cornerstone in a market where speed, scalability, and efficiency are critical.”
He added: “The key question is where it goes from here, and while it might seem strange for a company that’s just passed the $4trn mark, Nvidia still looks attractive.
“Growth is expected to slow, and it’s likely to lose some market share as competition and custom solutions ramp up. But trading at a relatively modest 32 times expected earnings, and over 50% top-line growth forecast this year, there’s still an attractive opportunity ahead.
“For investors, it remains a compelling way to gain exposure to the AI boom – not just as a participant, but as one of its architects.”