South Western Railway’S Services To Transfer Into Public Ownership Next Year

Plans to overhaul the rail network and put passengers first have been announced as the Transport Secretary reveals South Western Railway’s services will be the first to transfer into public ownership next year.

The move comes just days after one of the government’s first major pieces of legislation, the Passenger Railway Services (Public Ownership) Act 2024, received Royal Assent, paving the way for a major shake-up of Britain’s railways.  

The Department for Transport said the transition to a publicly owned railway will improve reliability and support the government’s number one priority of boosting economic growth by encouraging more people to use the railway.

It will also clamp down on unacceptable levels of delays, cancellations and waste seen under decades of failing franchise contracts and will save up to £150 million a year in fees alone by ensuring every penny is spent on services rather than private shareholders, all while coming at no additional cost to the taxpayer.

The announcement will see services across a wide area of southern England and East Anglia come back into public control by autumn 2025 and delivers on manifesto commitment to bring contracts with existing operators into public ownership as they expire without costing taxpayers a penny in compensation.

This government is fixing the foundations and delivering change with reform and investment to deliver growth and rebuild Britain. By bringing train operating companies into public ownership the government will turn the page on decades of delays, fragmentation and failure.

Transport Secretary, Heidi Alexander, said: “For too long, the British public has had to put up with rail services that simply don’t work. A complex system of private train operators has too often failed its users.

“Starting with journeys on South Western Railway, we’re switching tracks by bringing services back under public control to create a reliable rail network that puts customers first.

“Our broken railways are finally on the fast track to repairing and rebuilding a system that the British public can trust and be proud of again.”

The Transport Secretary has also announced that publicly run services will be managed by DfT Operator Limited – previously known as DfT Operator of Last Resort Holdings Limited (DOHL) – whose functions will eventually be integrated into Great British Railways (GBR). The DfT’s Operator will continue to focus on transforming Britain’s railways into a more reliable, affordable and accessible system.

While the announcement marks a major change, the government has said its first priority is ensuring the transition process is thorough and delivers the best outcomes for passengers. Allowing several months lead-in to each transfer will ensure there will be no adverse impact on passengers during this time, who will still be able to purchase their tickets as before, with railway staff assisting as usual.

The department expects the transfer of all passenger services operated under contracts with the Department for Transport (DfT) to complete over the next 3 years.

Railway Industry Association (RIA) Chief Executive, Darren Caplan, said: “Today’s announcement is an important milestone on the journey to a restructured railway. The UK supply chain will work with and support the government’s plans to deliver improved rail performance and reliability, as we together develop world-class rail, both track and train.

“There is now a real opportunity to provide more certainty and visibility over work plans, which will help a reformed railway be a catalyst for boosting growth and connectivity across the nations and regions of the UK, with better services for rail customers – passengers and freight – and ultimately ensure enhanced value for money for the taxpayer.”

Under the government’s broader plans to reform the railways, GBR will bring track and train together under one directing mind, with a relentless focus on improving services for passengers and customers. Until legislation for this is in place, Shadow GBR will make progress on ensuring the sector works together better under a publicly owned railway.

In the new year, the government will be setting out plans for how Shadow GBR will be delivering on its initial priorities, including how it will be moving the network towards greater financial sustainability and delivering for passengers.

Meanwhile, the government has already made major strides towards improving performance and services for passengers. Since July 2024, the department has brought an end to long-running national and local industrial disputes and LNER cancellations due to train driver shortages have dropped to near zero.

The department is also working on plans with operators and Network Rail to display performance information at stations – this will provide passengers with transparency and will allow the public to hold the rail industry and the department to account for delivery.

Immediate improvements have also been delivered at Euston Station through a 5-point plan to reduce overcrowding and deliver a better experience for passengers. This has included a review into passenger information, including the shutdown of overhead advertising boards and a trial of early boarding of services – with more updates to come later this month.

Responding to the news, Rail Partners chief executive, Andy Bagnall, said: “Publishing the timeline for bringing SWR, C2C and Greater Anglia into public ownership is a watershed moment that means the Government is now taking charge of fixing the railways, but has parked the big decisions about how to do that until next year.

“Simply changing who runs the trains won’t deliver more reliable and affordable services for passengers, reduce subsidy for taxpayers, or grow rail freight.

“The key to both improving performance and holding down fares is restoring the railway to financial sustainability. It is counter intuitive to start removing private sector operators from the system, with their track record of delivering growth to reduce subsidy, when the question of what will replace them long-term won’t be answered until further rail legislation is introduced.

“The government has a mandate for its plans for rail nationalisation, now it must deliver the improvements passengers and freight customers want.”

Paul Tuohy, CEO of Campaign for Better Transport, said: “There is an urgent need for action to give more people access to an affordable, reliable rail network. The Government must now work collaboratively across the sector and continue prioritising passengers by keeping them front and centre of its plans.”