Labour denies railways will be given ‘lower priority’ under renationalisation plans – as Tories warn of ‘wildcat strikes’

Published

2 years ago

April 26, 2024

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Labour has denied the railways will be given “lower priority” if they are brought back into public ownership as the party pledged to “sweep away” the current “broken” model.

Shadow transport secretary Louise Haigh promised to deliver the biggest shake-up to rail “in a generation” by establishing the long-delayed Great British Railways (GBR) organisation and bringing routes back into public ownership, if Labour forms the next government.

In a speech, Ms Haigh also pledged to establish a “best-price ticket guarantee” for travellers, offer automatic “delay repay” schemes and make digital season tickets available across the network.

But the proposals have been attacked by the Conservatives, who have claimed Labour has no plan to pay for them.

Sam Coates, Sky News’ deputy political editor, asked Ms Haigh how she was going to avoid the “trap” of British Railways – the former national railway system that was privatised in the 1990s – which was forced to compete for central government cash.

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“How are you going to make sure that you don’t end up falling into the same old trap as British Railways, where effectively, to get train upgrades, you are competing for cash with schools and hospitals, and given money is going to be very tight, aren’t the trains actually going to be a lower priority?” he asked.

Ms Haigh admitted the UK was in a “very constrained public spending environment” but said the reforms the party was setting out would deliver “significant efficiencies and cost savings for the taxpayer”.

“As I’ve said earlier, the taxpayer simply can’t afford to continue with the current broken model that is throwing good money after bad and wasting very, very stretched taxpayers’ money,” she argued.

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The shadow transport secretary also said she hoped she would be able to “reinvest some of those savings” created by the new efficiencies in the system but admitted she had not struck an “agreement” with Rachel Reeves, the shadow chancellor, “that all of it would be”.

GBR was first proposed in 2021 after a review of the railways, with the aim of simplifying the franchise system and rebuilding passenger numbers after they fell dramatically during the COVID pandemic.

The proposed public body promised to subsume Network Rail’s responsibility for track and stations, as well as taking charge of ticketing, timetables and network planning.

But despite getting backing from Boris Johnson and his ministers, its establishment has faced continuous delays and the organisation has yet to see the light of day.

Labour is now pledging to get GBR up and running if they win the next election, with some additional pledges of their own.

The party said the body, which would be run by industry experts rather than government officials, would end the “fragmentation, waste [and] bureaucracy” of the current network.

And it would “stop profits leaking out to private operators” by taking charge of passenger lines when franchises run out – leading eventually to the whole passenger network being publicly owned.

Labour said this method would prevent taxpayers from having to cover any compensation to the operators that would be due if they renationalised the railways immediately.

The party also pledged to create a new independent watchdog called the Passenger Standards Authority to ensure GBR keeps up its standards.

And it committed to introducing a statutory duty on GBR to promote the use of rail freight – still owned by private firms – to cut carbon emissions and reduce lorry traffic.

Plan may be popular – but will Treasury sign off on the cash?

Sam Coates

Deputy political editor

@SamCoatesSky

Labour’s plan to allow the railway companies to come back into public ownership is easy to understand, will be overwhelmingly popular with the public and provides an easy dividing line with the Tories.

But will it leave the railways better off?

One key argument advanced for scrapping the old British Rail under John Major’s government in the 1990s in favour of privatisation was that it would make investment in new and upgrading trains much easier.

Under the old system, in effect the trains were competing for cash with schools and hospitals – and too often found themselves losing out.

An incoming Labour government – if we get that far – would not only find money tight, but have committed to eyewatering fiscal rules restricting their room for spending.

So how much of a priority will modernisation be?

Louise Haigh, shadow transport secretary, says that the current system doesn’t work because too much money is being wasted – including on shareholder dividends, the payments to the owners of the private companies – and this needs to change.

But when I pressed her, she revealed that she has not secured any promises from Rachel Reeves, the shadow chancellor, that efficiencies found on the railways will be reinvested in the service.

The danger is that the Treasury nabs that money and spends it on public services they deem a bigger priority.

Even the rail companies themselves say things need to change. Whether this new alternative improves services for passengers remains to be seen.

The proposals have won the backing of Keith Williams – one of the experts behind the rail review – who recommended the creation of GBR three years ago.

He said its creation would “deliver a better railway for passengers and freight”, adding: “Running a better railway and driving revenue and reducing costs will deliver economic growth, jobs and housing by delivering better connectivity.”

But the Conservative Transport Secretary Mark Harper said Labour’s plan was “unfunded” and that that there was “nothing in it to improve services for passengers”.

“The other thing that people need to understand is what is the damage that will be done by Angela Rayner’s plan to reverse all our trade union legislation.

“You’re going to go back to French style, wildcat strikes with no notice.

“It’s not surprising the unions have welcomed Labour’s plans – it puts them back in the driving seat.”

Politics

Starmer ‘playing whack-a-mole’ to keep US on side – but will it be enough?

Published

7 hours ago

November 22, 2025

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Starmer 'playing whack-a-mole' to keep US on side - but will it be enough?

Keir Starmer flies out of South Africa this evening with two massive issues on his agenda – a potentially manifesto-busting budget and, as it stands, an unacceptable Ukrainian peace deal.

As he prepared to depart for London, the prime minister confirmed he was dispatching national security adviser Jonathan Powell to Geneva for talks with US officials, other European security advisers and Ukrainian representatives – as Europe and Ukraine scramble to reinsert themselves into a plan drawn up between Washington and Moscow.

The prime minister said on Saturday there was “more to do on the plan” in the coming days and the focus now was to try to make progress in Geneva.

Follow the latest: European leaders raise concerns over plan for Ukraine

After speaking on the phone to Donald Trump, Downing Street said the pair agreed their teams would work together on the US leader’s proposal in the Swiss city on Sunday.

Starmer also reiterated Britain’s “steadfast support for Ukraine” in a call with President Zelenskyy – as allies try to swing this deal more in Ukraine‘s favour, with the UK and other international leaders clear on their concerns to limit the size of the Ukrainian army and give up territory to Russia.

But in his remarks on camera, the prime minister was at pains to neither criticise the current deal nor President Trump.

One figure told me that the PM wants to act as a bridge between the Europeans and the US and has been playing a “game of whack-a-mole” over the past couple of days in an effort to keep others from publicly saying the deal is unacceptable for fear it would only serve to irritate President Trump and hurt Ukraine.

Earlier, the prime minister said he would talk to his US counterpart in the coming days.

“I’m absolutely clear in my mind that President Trump wants a just and lasting peace, not just from the actions he’s taken towards that end, but also from the private discussions that I’ve had with him,” Mr Starmer said.

“So I know what he’s trying to achieve. We all want to achieve that.”

But there will be a question about what the alternative options are if allies cannot improve this deal by President Trump’s Thursday deadline.

The first option is to try to improve it and also slow down the process and buy more time, but if that fails, are allies looking at scenarios where they try to shore up Ukraine’s war efforts without the US support?

The prime minister responded by talking about point five in the 28-point plan, in which Ukraine is offered security guarantees from the US.

“That fortifies in me the belief that what we’re all trying to achieve here is a just and lasting peace will only be just as lasting if there are security guarantees,” Mr Starmer said.

“And if we bear in mind that matters for Ukraine are always to be determined by Ukraine.”

The next 24 hours will be critical as the Europeans, Ukraine and other allies try to improve this deal.

Politics

Starmer refuses to rule out manifesto-breaking tax rises in budget

Published

1 day ago

November 21, 2025

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Starmer refuses to rule out manifesto-breaking tax rises in budget

The prime minister has refused to rule out manifesto-breaking tax hikes in next week’s budget while speaking to Sky News political editor Beth Rigby.

Sir Keir Starmer was interviewed by Rigby while the pair were in South Africa for a meeting of the G20 group of nations.

Despite the government last year indicating it was not going to raise more taxes, it appears that Wednesday’s fiscal event will involve substantial increases in levies.

The 2024 Labour manifesto said: “We will ensure taxes on working people are kept as low as possible.

“Labour will not increase taxes on working people, which is why we will not increase national insurance, the basic, higher, or additional rates of income tax, or VAT.”

At the start of their interview, the prime minister was asked by Rigby if it was important for politicians to “stick to their word”.

Sir Keir said: “Yes, it is important that politicians stick to their word.

“They have to make decisions against a political backdrop. And, we’ve also got big decisions to make in the budget that’s coming in just a few days time.”

This caveat matches the expectations that a range of taxes are going to be increased so the government can keep its spending pledges and increase its fiscal headroom amid worsening economic headwinds.

There was chaos last week after the increase in income tax that many had expected to be on the way was revealed to no longer be on the cards.

Asked specifically on the manifesto commitment on tax, Sir Keir told Rigby that decisions will be made “against a very difficult backdrop”.

In total, the prime minister refused 12 times to rule out tax rises.

He added it was “important to take the right decisions for our country”.

Rigby pointed out in the lead-up to the 2024 Budget, the prime minister was more unequivocal, saying income tax, national insurance and VAT would not all go up.

The prime minister declined to make the same promise, saying the decisions on tax will be announced on Wednesday.

However, Sir Keir said the budget will be guided by “principles”, including “fairness”.

The prime minister said the three areas he is “bearing down on” are the NHS, cutting national debt and dealing with the cost of living crisis.

One tax rise that has not been ruled out is what is known as a “stealth tax rise” of freezing income tax thresholds.

Rigby highlighted that in last year’s budget, Rachel Reeves said freezing thresholds will “hurt working people” – and asked the prime minister if he agreed.

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Sir Keir said: “We are going to set out our decisions.

“We will have absolutely in mind that the cost of living is the number one issue for people across the country.”

Pushed again, if working people will have their taxes increased, the prime minister instead mentioned he has people who are “struggling with the cost of living” in mind when making decisions.

Politics

Ex-Coinbase lawyer announces run for New York Attorney General, citing crypto policy

Published

1 day ago

November 21, 2025

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Ex-Coinbase lawyer announces run for New York Attorney General, citing crypto policy

Khurram Dara, a former policy lawyer at cryptocurrency exchange Coinbase, officially launched his campaign for New York State Attorney General.

In a Friday notice, Dara cited his “regulatory and policy experience, particularly in the crypto and fintech space” among his reasons to try to unseat Attorney General Letitia James in 2026.

The former Coinbase lawyer had been hinting since August at potential plans to run for office, claiming that James had engaged in “lawfare” against the crypto industry in New York.

Law, Politics, New York, Elections — *Source:* *Khurram Dara*

Until July, Dara was the regulatory and policy principal at Bain Capital Crypto, the digital asset arm of the investment company. According to his LinkedIn profile, he worked as Coinbase’s policy counsel from June 2022 to January 2023 and was previously employed at the crypto companies Fluidity and Airswap.

James, who took office in 2019, has faced criticism from many in the crypto industry for filing lawsuits against companies on behalf of affected New Yorkers, including Genesis, KuCoin and NovaTech. Whoever assumes the role of New York’s attorney general would have significant discretion over whether to file charges against crypto companies.

Dara, who said he plans to run as a Republican, also echoed Mayor-elect Zohran Mamdani’s recent winning campaign, citing New Yorkers’ concerns about the cost of living and affordability. Cointelegraph reached out to Dara for comment, but had not received a response at the time of publication.

The lawyer who represented XRP holders is also running for office again

As the deadline approached for candidates for various offices to announce their runs, former Massachusetts senatorial candidate John Deaton said he would try to unseat a Democrat again.

Deaton ran against Senator Elizabeth Warren in 2024, losing by about 700,000 votes. On Nov. 10, however, he announced he would run as a Republican again, attempting to unseat Senator Ed Markey in 2026.