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Telegraph
5 days ago
- Business
- Telegraph
Train firms accused of ‘vexatious' plot to derail Labour nationalisation
Private rail companies have been accused of trying to frustrate Labour's plan for state-run trains by deluging the Government with bids to run their own side services. A Whitehall source complained that applications to run extra trains during schedule gaps had ballooned since the start of last year, and particularly since ministers outlined their plans for nationalisation. The source claimed the requests looked 'borderline vexatious' because of the low likelihood they would succeed, adding: 'They know we can't approve them, because there's no capacity.' It comes after a string of so-called open access bids were submitted by companies including Sir Richard Branson's Virgin, FirstGroup and Arriva. Under open access rules, private firms can apply to run trains during gaps in rail schedules – for a fee. Applications are considered by the independent Office of Rail and Road (ORR). Between 2014 and 2023 there were 13 open access applications by private firms. Since January 2024, however, there have been another 13 – including five since Labour announced its nationalisation plans. Under Heidi Alexander, the Transport Secretary, officials have lobbied heavily for the ORR to refuse or partially refuse the applications, arguing they will worsen delays on the already-busy east and west coast main lines. In submissions to the ORR, the Department for Transport has also claimed private trains will drain fare revenue from state-run trains while failing to contribute the same amount to track upkeep – resulting in a net cost to taxpayers. In 2023/24, open access operators contributed just 0.3pc of annual rail infrastructure costs while accounting for more than 1.5pc of passenger miles travelled. A government insider said: 'Open access operators can open up new markets and increase choice for passengers. 'But the system we inherited means they can also take revenue from government-contracted services while not paying a fair amount towards the maintenance of taxpayer-funded infrastructure.' However, supporters of open access argue that private services – which receive no direct state subsidy and run at their own risk – help to lift all boats by forcing other services to compete for passengers. Currently they only account for 1pc of passenger rail journeys. An analysis of official statistics by the Centre for Policy Studies found that intercity trains running on routes without competitors were 'more expensive, require larger subsidies, generate lower passenger satisfaction and have been less successful in getting their finances and passengers back since the pandemic'. That has triggered concerns that Labour's plan for a state-run railway under new quango Great British Railways (GBR) will lead to poorer standards for the travelling public in the long run. In the past month, the ORR has rejected Sir Richard's attempt to launch Virgin Trains between London and a range of major cities via the west coast mainline. It also blocked proposals from FirstGroup and Wrexham, Shropshire & Midlands Railway (WSMR). On the east coast mainline, the regulator approved and partially-approved an expansion of existing services by operators including FirstGroup, Hull Trains and Arriva, although it blocked plans for a new service between London and Sheffield. The Rail Delivery Group, which represents private rail operators, declined to comment. But one source at a rail company disputed government claims that the main lines were too busy. They questioned whether so-called 'firebreaks' built into schedules – extra time scheduled on either side of services to prevent knock-on delays if they run late – could be reduced if trains were run more efficiently overall. A DfT spokesperson said: 'Decisions on open access applications are a matter for the Office of Rail and Road. 'We're supportive of open access services where they encourage growth and improve connectivity, but this should not be at the expense of network performance or the taxpayer.'
The Herald Scotland
03-08-2025
- Business
- The Herald Scotland
Family sells school bus and coach company after 76 years
Aberdeen-based FirstGroup said this week it had taken over Tetley's, which has been operating in and around Leeds since 1949. A FirstGroup bus. (Image: Kirsty Anderson) Tetley's Motor Services works from a large depot which it owns in the centre of the Yorkshire city, FirstGroup said. The Aberdeen group also said Tetley's is a "profitable" business in a "key" market and added that this depot is "adjacent to the … existing First Bus Hunslet Park depot". Read Ian McConnell's story here Scott Wright Tourism chiefs tetchy as Edinburgh visitor levy nears Edinburgh is set to be the first. (Image: Getty Images) After years of debate, the introduction of Scotland's first tourist tax is finally approaching. But don't expect the build-up to the launch of the Edinburgh visitor levy to be smooth.
The National
02-08-2025
- Business
- The National
Scottish transport company acquires historic English bus firm
Aberdeen-based FirstGroup has bought Tetley's Motor Services Limited, a historic Leeds-based coach and bus operator that has operated for over 75 years. It operates from a large depot which it owns in central Leeds and has a fleet of 55 coaches and buses. Managing Director Ian Tetley will remain with the business as a director while it is integrated into First Bus. READ MORE: Huge drugs bust in Glasgow as £3.68 million worth of cocaine seized by police Commenting on the acquisition, CEO of FirstGroup Graham Sutherland, said: 'I am very pleased to welcome Tetley's Coaches to the Group. This is a well-established, profitable business with its own large, centrally located depot and a strong contract base. As we work to grow our adjacent services market share, this strategic acquisition will complement our York Pullman and Lakeside businesses and expand our operational footprint and contract portfolio in one of our key markets.'
The Herald Scotland
29-07-2025
- Business
- The Herald Scotland
Scottish law firm says ‘rapid expansion continues apace'
Holmes Mackillop said the recruitment of two solicitors follows the appointment of four trainees. Murray McKelvie joins the firm's Glasgow office while Paula Davies joins the Giffnock office as an associate. Murray McKelvie and Paula Davies. (Image: Holmes Mackillop) Following his qualification as a solicitor in 2023, Mr McKelvie has gained experience advising on the preparation of wills and powers of attorney "together with assisting clients in the difficult process following bereavement". Ross Brown, director, welcomed Mr McKelvie to the private client team and said: 'We are delighted to recruit Murray to our expanding team where he has already made an immediate contribution to the enhancement of our provision of our expert legal advice to clients with a focus on the protection of the interests of individuals and their families through appropriate mechanisms to best protect their assets.' Having qualified as a solicitor in 2022 after completing her traineeship specialising in residential conveyancing, Ms Davies now works in the firm's residential conveyancing team where she "deploys her knowledge of property law, specialising in all aspects of purchasing and selling property, transfers of title, discharging standard securities and re-mortgages". Robert Stewart, director, welcomed Ms Davies to the firm's Giffnock office and said: 'We are very pleased to appoint Paula to our team where she is already helping clients navigate the process of buying and selling homes – the biggest lifetime transactions most people undertake – with the minimum fuss.' Holmes Mackillop has over 240 years of experience in delivering a broad spectrum of legal services to its clients from offices in Glasgow City, Glasgow Southside, Ayrshire, East Dunbartonshire, East and South Renfrewshire. Scottish bus company unveils major deal in 'key market' Scottish bus company FirstGroup has unveiled another 'strategic acquisition' - the latest in a string of purchases.
The Guardian
29-07-2025
- Business
- The Guardian
Train operators allowed to run more east coast mainline services to Glasgow, Hull and Bradford
Private train operators will be allowed to run extra services on the east coast mainline from London to Glasgow, Hull and Bradford, Britain's rail regulator has ruled. The decision to give additional paths to three existing companies comes in spite of concerns about capacity and the impact on taxpayer-funded services, with the main operator on the line, LNER, preparing to run faster intercity trains. The Office of Rail and Road (ORR) approved plans from the First Group-owned Lumo to extend some of its London-Edinburgh services to Glasgow and add another Newcastle daily return, while its Hull Trains operation gets another daily return service. Arriva's Grand Central will also be allowed to run more trains from the capital to Bradford. But the regulator knocked back part of the operators' applications, including a new direct London King's Cross to Sheffield service from First, on the basis of 'insufficient capacity and potential performance impacts, or impact on the secretary of state's funds'. Open access operations have been allowed space to continue despite the nationalisation of all leading passenger train services under the planned Great British Railways. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion While Labour had decided against eliminating open access, which has run popular routes to northern towns, the transport secretary, Heidi Alexander, had signalled to the ORR that it should prioritise the needs of state-funded trains and overall performance in considering the proposals. The state-owned LNER is set to bring in a major timetable change in December, one which has already been postponed for a year over concerns about the railway's readiness and congestion, cutting London to Edinburgh journey times. Stephanie Tobyn, the ORR director of strategy, policy and reform, said: 'Approving these additional open access services will increase connectivity on the east coast mainline. 'Importantly, we have ensured the approval of these services can be accommodated alongside the major service uplifts by other operators, which have been planned into the December 2025 timetable, so together passengers and freight customers can benefit from more direct connections and greater choice from December.' The First Group chief executive, Graham Sutherland, said: 'We are pleased to have been awarded the extensions to our successful open access rail operations. This is an important step in our efforts to materially grow our open access business and will allow us to build on the substantial benefits we are making to the communities we serve, and to attract even more passengers to rail.'
