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by Munro Research

Passenger Railway Services (Public Ownership) Act 2024


Official Summary

A Bill to make provision for passenger railway services to be provided by public sector companies instead of by means of franchises.

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Overview

This bill aims to improve passenger railway services in the UK by transferring control of some or all railway franchises to the public sector. It mandates the government to terminate poorly performing private franchises and replace them with publicly-owned operations only if doing so will demonstrably improve services.

Description

The bill sets out to enhance the performance of passenger rail services. Key aspects include:

  • Statement of Purpose: The bill explicitly states its goal is to improve passenger railway services.
  • Franchise Termination: The Secretary of State is required to terminate underperforming railway franchise agreements as quickly as possible, following the terms of the agreements.
  • Performance Assessment: Existing franchise agreements will be ranked according to performance criteria developed through consultation. Termination of a franchise via a "break clause" (a contractual right to terminate early) will only occur if no worse-performing franchises exist and if the government believes public sector operation will improve service.
  • Public Sector Equality Duty: Public sector companies taking over rail services will be subject to the public sector equality duty under the Equality Act 2010.

Government Spending

The bill doesn't specify exact figures for government spending. However, it anticipates increased public expenditure as the government assumes responsibility for railway services currently operated under private franchises. The precise cost will depend on the number of franchises transferred and the associated operational costs.

Groups Affected

The bill will impact several groups:

  • Passengers: Potentially benefit from improved service if the government successfully improves railway operations.
  • Private railway companies: May experience loss of contracts and revenue if their franchises are terminated.
  • Public sector employees: May see increased employment opportunities as the public sector expands its role in railway management and operations.
  • Taxpayers: Will bear the cost of any increased government spending related to the transfer of franchises to the public sector.

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