First renationalised train service starts today – but not how you’d have hoped…
South Western Railway (SWR) has been renationalised this weekend as part of the government’s transition towards Great British Railways.
The train operator officially came under public ownership at around 2am on Sunday – and the first journey, the 5.36am from Woking, was partly a rail replacement bus service due to engineering works.
So what difference will renationalisation make to passengers and will journeys be cheaper?
Pic: PA
What is nationalisation?
Nationalisation means the government taking control of industries or companies, taking them from private to public ownership.
Britain’s railway lines are currently run by train operating companies as franchises under fixed-term contracts, but Labour have said they want to take control of the lines when those fixed terms end.
In its manifesto, the party vowed to return rail journeys to public ownership within five years by establishing Great British Railways (GBR) to run both the network tracks and trains.
Transport Secretary Heidi Alexander said renationalising SWR was “a watershed moment in our work to return the railways to the service of passengers”.
“But I know that most users of the railway don’t spend much time thinking about who runs the trains – they just want them to work,” she added. “That’s why operators will have to meet rigorous performance standards and earn the right to be called Great British Railways.”
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How reliable are UK trains?
How will ticket prices be affected?
Labour have argued cutting off payments flowing into the private sector could save the taxpayer £150m a year.
But the government has not explicitly promised the savings made from nationalisation will be used to subsidise fees.
It is unlikely rail fares will fall as a result of nationalisation, rail analyst William Barter told Sky News.
“The government could mandate fare cuts if it wanted to, but there’s no sign it wants to,” he said.
“At the moment, I’m sure they would want to keep the money rather than give it back to passengers. The current operator aims to maximise revenue, and there’s no reason the government would want them to do anything differently under government control.”
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UK has most expensive train tickets in Europe
What difference will it make for passengers?
Britain’s railways are frequently plagued by delays, cuts to services and timetable issues, but Mr Barter said nationalisation will make very little day-to-day difference to passengers.
There was “no reason to think” the move would improve issues around delays and cancellation of services, he said.
“It’s going to be the same people, the same management,” he explained.
“The facts of what the operator has to deal with in terms of revenue, infrastructure, reliability, all the rest of it – they haven’t changed.”
Pic: PA
Which services are being next to be nationalised?
In the longer term, the move is likely to bring “a degree of certainty compared with relatively short-term franchises”, Mr Barter said, noting the government would only want to renationalise a franchise “because in one way or another something very bad is going on in that franchise, so in a way it can only get better”.
It also means the government will have greater accountability for fixing problems with punctuality and cancellations.
Mr Barter said: “If this is the government’s baby, then they’re going to do their best to make sure it doesn’t fail. So rather than having a franchise holder they can use as a political scapegoat, it’s theirs now.”
He added: “In the short term, I don’t think you’d expect to see any sort of change. Long term, you’ll see stability and integration bringing about gradual benefits. There’s not a silver bullet of that sort here.”
Next to be renationalised later this year will be c2c and Greater Anglia, while seven more companies will transfer over when their franchises end in the future.
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Politics
Michelle Mone says she won’t step down as Tory peer – and accuses chancellor of ‘endangering’ her
Baroness Michelle Mone says she will defy calls for her to step down from the House of Lords after PPE Medpro, a company founded by her husband, was ordered to repay £122m to the government for providing faulty PPE at the height of the COVID-19 pandemic.
The peer has faced calls to stand down from MPs across the political spectrum, including Chancellor Rachel Reeves, who earlier this week agreed with Baroness Mone’s contention that the government was pursuing a “vendetta” in trying to recover improper Covid funding.
“Too right we are,” she said in comments at the Labour Party conference.
Money blog: Ryanair CEO warns 100,000 passengers could have flight cancelled
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Baroness Mone ‘should resign’
In an extraordinary letter to the prime minister, Baroness Mone has accused Ms Reeves of endangering her and her family with her comments, citing the murders of Jo Cox and David Amess as evidence of the risks facing parliamentarians.
She also alleged ministerial interference in the civil and ongoing criminal investigations of PPE Medpro, and has called for an investigation into whether ministers have “improperly influenced” the Crown Prosecution Service and the National Crime Agency.
In the letter, sent from the private office of Baroness Mone OBE and seen by Sky News, she addresses the prime minister directly, writing in a personal capacity “first as a wife, second as a mother, and lastly as a Baroness.”
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£122m bill that may never be paid
Referring to Ms Reeves’ comments, she writes: “The chancellor’s deliberate use of the term “vendetta”, a word connoting vengeance, feud and blood feud, is incendiary and has directly increased the risks to my personal safety…. My family and I now live with a heightened and genuine fear of appearing in public.”
She goes on to accuse Reeves and health secretary Wes Streeting of “falsehoods” in demanding that she hand back £122m, pointing out that she was never a director of PPE Medpro and “never received a penny from it personally.”
While the company was founded by her husband Doug Barrowman, a High Court judgement this week confirmed that Baroness Mone introduced it to the government’s VIP fast lane for PPE providers, and lobbied on its behalf in negotiations.
She has previously admitted that £29m of profit from the PPE contract was passed to a family trust of which she and her children are beneficiaries.
The peer has also accused the Prime Minister of “a total lie” when “you stated in Parliament that my children had received £29m into their bank accounts.”
Baroness Mone said that following these comments, she had received threatening and abusive communications, and cited the death of TV presenter Caroline Flack, who took her own life, as showing “the fatal consequences of personalised public vilification”.
“Your cabinet members, by repeating this knowingly false claim, are inciting hostility and inflaming public hatred against me.”
Baroness Michelle Mone and her husband Doug Barrowman. Pic: PA
She has also accused the home secretary of influencing the NCA and Director of Public Prosecutions in unspecified meetings to discuss “high-profile cases”.
“That political influence is being brought to bear is, therefore, undeniable,” she said.
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On Wednesday, PPE Medpro was ordered to repay £122m paid for 25 million surgical gowns that failed to meet sterility standards in breach of its contract with the Department of Health and Social Care.
PPE Medpro was put into administration the day before the judgment, with assets of just £666,000.
Asked if Baroness Mone would step down from the Lords, a spokesman said: “Those calling for Baroness Mone’s resignation from the House of Lords would be well advised to read the open letter sent this morning to the prime minister, which sets out how this has now become a personal attack and vendetta, politically motivated with loss of all balance and objectivity.”
Sky News has asked Number 10 and the Treasury for a response to the allegations made by Baroness Mone.
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