Overview

This bill proposes to bring all passenger rail franchises in England, Scotland and Wales under public control. Existing private franchises will revert to the government when they are renewed, or if the Secretary of State deems public operation more efficient. New franchises will only be awarded to publicly-owned bodies.

Description

The Railways Bill mandates the Secretary of State to assume control of all passenger rail franchises upon renewal. This includes:

• Existing Franchises: Private franchises will be transferred to a public body chosen by the Secretary of State (except Scotrail, nominated by the Scottish Government and Wales & Borders, nominated by the Secretary of State in consultation with the Welsh Assembly Government).
• Early Transfer: The Secretary of State can also take control of existing franchises if deemed economically and efficiently beneficial to switch to public operation.
• Public Body Establishment: The bill allows the Secretary of State to create new public bodies or appoint existing ones to manage franchises. These bodies may also operate freight services and control infrastructure if deemed suitable.
• Repeal of Section 25: Section 25 of the Railways Act 1993, which concerns passenger service franchise agreements, will be repealed.
• No New Private Franchises: No new passenger rail franchises can be awarded to private entities after the bill's commencement.

Government Spending

The bill states that any expenditure incurred by the Secretary of State due to the implementation of this act, and any increase in sums payable under other acts as a consequence, will be paid from public funds. Specific figures are not provided within the bill itself.

Groups Affected

• Train Operating Companies (TOCs): Current private TOCs will lose their franchises upon renewal, potentially leading to job losses or reassignment within public sector organisations.
• Passengers: May experience changes in service quality, fares, and operational aspects, depending on the effectiveness of public operation compared to private operation.
• Taxpayers: Will bear the financial consequences of the transition and ongoing operation of the rail network under public control.
• Government: Assumes greater responsibility and financial liability for the running of passenger rail services.
• Employees of private companies: Potential changes to employment opportunities depending on how public bodies restructure workforce.

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