South Western Railway to return to public ownership

Plans to overhaul the rail network and put passengers first have been announced today as the Transport Secretary reveals South Western Railway’s services will be the first to transfer into public ownership next year. 

The move comes just days after one of the Government’s first major pieces of legislation, the Passenger Railway Services (Public Ownership) Act 2024, received Royal Assent, paving the way for a major shake-up of Britain’s railways.  

The transition to a publicly owned railway will improve reliability and support the Government’s top priority of boosting economic growth by encouraging more people to use the railway.

It will also clamp down on unacceptable levels of delays, cancellations, and waste seen under decades of failing franchise contracts. By ensuring every penny is spent on services rather than private shareholders, it will save up to £150 million a year in fees alone, all while coming at no additional cost to the taxpayer.

Today’s announcement will see services across a wide area of southern England and East Anglia come back into public control by autumn 2025 and delivers on manifesto commitment to bring contracts with existing operators into public ownership as they expire without costing taxpayers a penny in compensation.

This Government is fixing the foundations and delivering change with reform and investment to deliver growth and rebuild Britain. By bringing train services into public ownership the Government will turn the page on decades of delays, fragmentation and failure.

Transport Secretary Heidi Alexander said: 

“For too long, the British public have had to put up with rail services which simply don’t work. A complex system of private train operators has too often failed its users.

“Starting with journeys on South Western Railway, we’re switching tracks by bringing services back under public control to create a reliable rail network that puts customers first.

“Our broken railways are finally on the fast track to repair and rebuilding a system that the British public can trust and be proud of again.” 

The Transport Secretary has also today announced that publicly run services will be managed by DfT Operator Limited previously known as DfT Operator of Last Resort Holdings Limited (DOHL), whose functions will eventually be integrated into Great British Railways. The DfT’s Operator will continue to focus on transforming Britain’s railways into a more reliable, affordable, and accessible system.

The organisation will focus on improving operations and financial sustainability and transforming Britain’s railways into a more reliable, affordable, and accessible system.   

While today’s announcement marks a major change, the Government’s first priority is ensuring the transition process is thorough and delivers the best outcomes for passengers. Allowing several months lead-in to each transfer will ensure there will be no adverse impact on passengers during this time, who will still be able to purchase their tickets as before, with railway staff assisting as usual. 

The Department expects the transfer of all passenger services operated under contracts with the Department for Transport to complete over the next three years. 

Railway Industry Association (RIA) Chief Executive Darren Caplan said:

“Today’s announcement is an important milestone on the journey to a restructured railway. The UK supply chain will work with and support the Government’s plans to deliver improved rail performance and reliability, as we together develop world class rail, both track and train.

“There is now a real opportunity to provide more certainty and visibility over work plans, which will help a reformed railway be a catalyst for boosting growth and connectivity across the nations and regions of the UK, with better services for rail customers – passengers and freight – and ultimately ensure enhanced value for money for the taxpayer.”

Under the Government’s broader plans to reform the railways, Great British Railways (GBR) will bring track and train together under one directing mind, with a relentless focus on improving services for passengers and customers. Until legislation for this is in place, Shadow GBR will make progress on ensuring the sector works together better under a publicly owned railway.

In the new year, the Government will be setting out plans for how Shadow GBR will be delivering on its initial priorities, including how it will be moving the network towards greater financial sustainability and delivering for passengers.

Meanwhile, the Government has already made major strides towards improving performance and services for passengers. Since July, the Department has brought an end to long-running national and local industrial disputes, and LNER cancellations due to train driver shortages have dropped to near zero.

The Department is also working on plans with operators and Network Rail to display performance information at stations – this will provide passengers with transparency and will allow the public to hold the rail industry and the Department to account for delivery. 

Immediate improvements have also been delivered at Euston Station through a five-point plan to reduce overcrowding and deliver a better experience for passengers. This has included a review into passenger information, including the shutdown of overhead advertising boards, and a trial of early boarding of services – with more updates to come later this month.