UK takes first step in rail renationalization scheme – DW – 05/25/2025

DW

25-05-2025

Britain's South Western Railways became the first private operator to return to public ownership. The Labour government plans to renationalize the whole network by the end of 2027.
The UK's South Western Railways on Sunday was returned to public ownership, kicking off a campaign for the Labour government.
The move is part of the government's larger plan to renationalize the country's rail services, as had been pledged by Prime Minister Keir Starmer when he took office last year.
"Today is a watershed moment in our work to return the railways to the service of passengers," Transport Secretary Heidi Alexander said in a statement.
The South Western service entered public ownership at 1:59 a.m. local time (0059 GMT), however, the first service to be run under the changed ownership was set to be a rail replacement bus service.
When did the UK privatize its railways?
Britain's railways have developed a poor reputation, with frequent cancellations, high ticket prices and confusion over which services tickets can be used for.
Rail unions who have staged several strikes over pay in recent years were happy about the state takeover.
"Everyone in the rail industry knows that privatization... didn't, and doesn't, work," Mick Whelan, general secretary of union Aslef said.
The UK's rail services were privatized in the mid-1990s, although the rail network remained in public hands, run by Network Rail.
Legislation passed in November paved the way for the country's 14 rail operators to be brought back under public control once their contracts expired — all of which will run out by 2027 at the latest — or earlier in cases of poor performance.
Four operators were already taken under public control due to poor performance, but these were originally to be temporary measures.
Rail nationalization to end decades of 'fragmentation'
Alexander said this move would end "30 years of fragmentation," adding that change will take time.
The Labour government said renationalization will save up to £150 million ($203 million or €178 million) in compensation fees paid to rail operators.
Southeastern and Eastern services are set to be nationalized by the end of 2025.
The rail systems in Northern Ireland, Scotland and Wales are all publicly controlled.
In Germany, the majority of trains and rail infrastructure are owned by the state enterprise Deutsche Bahn (DB).
Edited by: Alex Berry