King’s Speech: Labour makes rail nationalisation one of main priorities of new Parliament

The Railways Bill seeks to bring train operation into public ownership when rail companies operating contracts expire.

The government said this will avoid the need to pay compensation to current operators and will save taxpayers millions of pounds each year that are paid out in fees to private train companies.

It added that the first contracts will be brought into public ownership as soon as possible once the legislation is in place.

In the King’s Speech briefing, it cited the improvement of TransPennine Trains, after being brought under public control as “operator of last resort”, as well as LNER.

With the bill being laid today, government sources suggested that this was one of the new administration's top priorities.

Renationalising all train operation was a long-standing pledge for Labour while the party was in opposition.

The sector’s overhaul will also be carried out through the Railways Bill, which will lead to the introduction of Great British Railways, first proposed by the Conservative government in May 2021.

However Rail Partners, which represents private sector train operators, said legislation announced in the King’s Speech will “increase costs” and was a “political not a practical solution”.

However Richard Bowker, former boss of the Strategic Rail Authority, said the government’s plans are “very solid and sensible”.

It comes ahead of Transport Secretary Louise Haigh’s visit to Leeds Station today to discuss the West Yorkshire mass transit plans with Mayor Tracy Brabin.

Ms Brabin has said that better transport is key to growing businesses across Leeds and Bradford.

Ms Haigh also has to decide the future of the previous government’s Network North plans, which pledged billions of pounds in transport infrastructure across Yorkshire.

This included electrifying the lines between Leeds, Hull and Sheffield, and a new station and connectivity for Bradford.

Chancellor Rachel Reeves told the Yorkshire Post this would be up to Ms Haigh to assess the viability of these schemes.

Henri Murison, chief executive of the Northern Powerhouse Partnership, praised Labour’s transport announcements in the King’s Speech.

He said: “The new government has recommitted to the first part of the new line that along with upgrades to Hull and Sheffield will transform connectivity across the Pennines unlocking Liverpool to Newcastle.

“From Manchester Piccadilly we will still need further powers to complete the line into Yorkshire, as well as from Huddersfield to Bradford, but this Hybrid Bill continuing is what needed to happen next in legislative terms.

“We have every confidence that the incoming government will work constructively with both civic and business leaders on this crucial agenda.”

The government also announced it would allow wider bus franchising to councils beyond the metro mayor areas, and that it was holding talks with train-drive union Aslef in a bid to end the long-running pay dispute.