Latest news with #renationalization
Yahoo
25-05-2025
- Business
- Yahoo
UK takes first step in rail renationalization scheme
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. 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. 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
Arab News
24-05-2025
- Business
- Arab News
UK renationalizes first train operator under Labour reforms
LONDON: Britain's South Western Railways on Sunday becomes the first private train operator to be returned to public ownership under the Labour government's plans to renationalize the country's much-maligned railways. Renationalizing all of the UK's rail operators is among the key policies launched by Prime Minister Keir Starmer since his party's return to government last July following 14 years in opposition. '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. Train passengers in Britain suffer from frequent cancelations, in addition to high ticket prices and regular confusion over which services they can be used on. The privatization of rail operations took place in the mid-1990s under the then Conservative prime minister John Major, but the rail network remained public, run by Network Rail. Four of the 14 operators in England are already run by the state owing to poor performance in recent years, but this was originally meant to be a temporary fix before a return to the private sector. Labour triumphed over the Conservative party in elections last year, re-entering Downing Street with promises to fix the country's ailing transport services. Legislation was approved in November to bring rail operators into public ownership when the private companies' contracts expire — or sooner in the event of poor management — and be managed by 'Great British Railways.' Alexander said this will end '30 years of fragmentation,' but she warned that 'change isn't going to happen overnight.' 'We've always been clear that public ownership isn't a silver bullet, but we are really firing this starting gun in that race for a truly 21st-century railway, and that does mean refocusing away from private profit and toward the public good,' she added. In an example of how passengers might not immediately notice much difference, South Western's first service under public ownership on Sunday was set to be a rail replacement bus. Government figures show that the equivalent of four percent of train services in Britain were canceled in the year to April 26. Rail unions — which have staged a stream of strikes in recent years over pay and conditions due to a cost-of-living crisis — welcomed the state takeover. 'We're delighted that Britain's railways are being brought back where they belong — into the public sector,' said Mick Whelan, general secretary of union Aslef. 'Everyone in the rail industry knows that privatization... didn't, and doesn't, work,' he added. Two operators serving towns and cities in southeastern and eastern England are next to be brought back into public ownership by late 2025. All the current contracts are set to expire by 2027. The government has said renationalization will save up to £150 million ($203 million) per year because it will no longer have to pay compensation fees to rail operators. The main rail operators in Scotland and Wales, where transport policy is handled by the devolved administrations in Edinburgh and Cardiff, are also state-owned.
