South West Rail, c2c and Greater Anglia rail companies to be nationalised in 2025 | Money News

The first three railway companies to be nationalised have been named as part of the new Labour government’s plan to bring rail into public ownership.

In May the service from London’s Waterloo station to southwest London, South Western Railway, will become the first to be nationalised, the Department for Transport said.

It will be followed by the London to Essex route c2c in July and east coast operator Greater Anglia in autumn, the department said.

Taking the businesses out of private ownership will reduce delays and cancellations that have plagued rail services across Britain, the government said, in turn encouraging more people to take the train.

It hopes £150m will be saved by passenger fares going to services rather than company shareholders.

Money blog: Market town with average house price of £440k named happiest place to live

The pledge was a key point of differentiation between Labour and the Conservatives during the election campaign.

Services are currently contracted out, meaning companies such as Italy’s primary operator Trenitalia bid to run services.

Under the new system, taxpayers will not have to compensate firms for terminating their contracts.

Eventually, all companies will come under the auspices of a new state-owned company called Great British Railways.

This rail nationalisation process is expected to be completed over the next three years, according to the Department for Transport.

Of 14 train operating companies to be taken over by the government, four are already under state control having been put under special administration for poor services.

Not all train services will become public with services such as the Heathrow, Stansted and Gatwick Expresses remaining in private hands.

Read more
Ford’s UK boss demands thousands of pounds in incentives to drive electric future
Overhaul of official workforce data may take another two years – ONS

In total, there are 28 British rail operators.

Transport Secretary Heidi Alexander told Sky News privatisation has not worked due to “huge fragmentation” under the system with a “dizzying array of private companies”.

“Financial incentives are misaligned, and there’s no real overarching direction. And so I think as a result of that, no one’s in control,” she added.

When asked, she did not say rail fares would come down under nationalisation.

It’s Ms Alexander’s fourth day on the job after the shock resignation of former transport secretary Louise Haigh.

She resigned after Sky News revealed she pleaded guilty to an offence related to incorrectly telling police that a work mobile phone was stolen in 2013.