Overview

This bill proposes the transfer of control over passenger rail franchises in the UK from private companies to public bodies. Existing franchises will revert to the government upon renewal or if deemed more economically efficient under public management. 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 upon renewal. This applies to England, Wales, and Scotland, with the Scottish Government nominating the public body for Scotrail services, and the Secretary of State nominating in consultation with the Welsh Assembly Government, for Wales and Borders services.

Key Provisions:

• Section 1: Specifies the Secretary of State's assumption of control over existing franchises upon renewal, and allows the Secretary of State to transfer franchises to a public body if deemed beneficial.
• Section 2: Repeals Section 25 of the 1993 Railways Act, which relates to franchise agreements.
• Section 3: Allows for orders to amend the 1993 Act to align with this new bill and requires parliamentary approval for such orders.
• Section 4: Outlines that any costs incurred under the bill will be covered by government funds.
• Section 5: Establishes that from the bill's commencement, only public bodies will be awarded new rail franchises.

Government Spending

The bill will result in increased government expenditure. The exact figure is not specified in the bill text but would cover the costs of operating the rail franchises under public control, potentially exceeding prior private sector costs. This will be paid from money provided by Parliament.

Groups Affected

• Private Rail Companies: Loss of existing franchises and future opportunities.
• Passengers: Potential changes to service quality, pricing, and frequency.
• Government: Increased financial responsibility and operational oversight of rail services.
• Public Bodies: New responsibilities for operating rail services.
• Employees of private rail companies: Potential job security implications due to the transfer of franchises.

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