Overview

This Railways Bill proposes transferring control of passenger rail franchises in England, Wales, and Scotland from private companies to public bodies. Existing franchises will be transferred upon renewal or if deemed more economically efficient by the Secretary of State. No new private franchises will be awarded.

Description

The bill mandates the Secretary of State to assume control of all existing private passenger rail franchises upon renewal. The Secretary of State will then allocate these franchises to public bodies, either newly established or existing. The Scottish and Welsh governments will nominate the public bodies responsible for Scotrail and Wales & Borders services respectively. These public bodies may also operate freight services and manage railway infrastructure, rolling stock, and other related aspects, if deemed economically efficient by the Secretary of State. Section 25 of the Railways Act 1993, which concerns passenger service franchise agreements, will be repealed. The Secretary of State can amend the Railways Act 1993 to reflect these changes via parliamentary order. From the bill's enactment, only public bodies can be awarded new franchises.

Government Spending

The bill will result in increased government spending. All expenditure incurred by the Secretary of State in implementing the Act, along with any increases in sums payable under other Acts due to this Act, will be funded from parliamentary money provided. Specific figures are not provided in the bill.

Groups Affected

• Private Rail Companies: Loss of franchises and potential revenue streams.
• Passengers: Potential changes in service provision depending on the management of the public bodies.
• Secretary of State for Transport: Increased responsibilities for managing rail franchises.
• Public Bodies (newly established or existing): Increased responsibilities for managing rail franchises.
• Scottish and Welsh Governments: Involved in the nomination of public bodies for Scotrail and Wales & Borders services respectively.
• Taxpayers: Will fund the increased government spending associated with the bill.

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