Overview

This bill proposes bringing all passenger rail franchises in England, Scotland and Wales under public control. Existing private franchises will revert to the government upon renewal or if deemed more efficient to run publicly. No new private franchises will be awarded.

Description

The Railways Bill mandates the Secretary of State to assume control of all existing passenger rail franchises when they are due for renewal. These franchises will then be allocated to a public body, either an existing one or a new one created specifically for this purpose. The Secretary of State will have the power to determine if an existing franchise should be transferred to public control if deemed more economically efficient. The Scottish Government will nominate the public body for Scotrail services, and the Secretary of State, in consultation with the Welsh Assembly Government, will do so for Wales & Borders services. The public body can also manage freight services and railway infrastructure. Section 25 of the Railways Act 1993, which relates to passenger service franchise agreements, will be repealed. The bill also requires parliamentary approval for any order made under the Act to amend the Railways Act 1993.

Government Spending

The bill states that any expenditure incurred by the Secretary of State due to the bill, and any increase in sums payable under other Acts as a result of the bill, will be paid from public funds. Specific figures are not provided in the bill text.

Groups Affected

• Existing Private Rail Franchise Holders: Will lose their franchises upon renewal or at the Secretary of State's discretion.
• Passengers: May experience changes in service provision depending on the management of public bodies.
• Rail Workers: May face changes to employment terms and conditions depending on the new public operators' policies.
• The UK Government: Will incur additional costs associated with taking over and running the rail franchises.
• Scottish Government: Will nominate the public body to manage Scotrail.
• Welsh Assembly Government: Will be consulted on the nomination of the public body for Wales & Borders services.

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