BRITAIN’s Department for Transport (DfT) has confirmed that South Western Railway (SWR) will be the first former franchise operator to return to public ownership. It also confirmed that all former franchise contracts will return to the public sector within the next three years.
The DfT says SWR will return to public ownership at the conclusion of its current National Rail Contract (NRC) on May 25 2025. The government’s Passenger Railway Services (Public Ownership) Act 2024 received Royal Assent last week, paving the way for the announcement.
SWR, which is currently run by FirstGroup (70%) and MTR (30%) under the contract with the government, operates regional and commuter services out of London Waterloo to Surrey, Berkshire and Hampshire, as well as longer distance services to Wiltshire, Dorset, Somerset and Devon in the west of England.
The DfT confirmed that c2c, which is held by Trenitalia and provides services from London Fenchurch Street to various destinations in Essex in the east of England, will also return to public ownership upon the expiry of its NRC on July 20 2025. Greater Anglia will follow in the autumn. Its NRC, which was extended for two years in September, is set to be terminated early with the government able to notify the operator within 12 weeks of termination under the terms of the extended contract. The operator is held by UK Transport Group, a British-led management buyout from previous operator, Abellio.
DfT Operator
The transferred services will be managed by DfT Operator, the current DfT Operator of Last Resort, which manages four former franchise contracts in England that were returned to public ownership following poor performance under their various third-party owners: Northern, London North Eastern, TransPennine Express, and Southeastern.
The Welsh government oversees Transport for Wales services and the Scottish government is responsible for Scotrail and Caledonian Sleeper. Rail operations in Northern Ireland have remained publicly owned.
DfT Operator will ultimately be integrated into Great British Railways (GBR), the new centralised body that will be responsible for rail operations as well as infrastructure management, assuming the functions of Network Rail (NR). Legislation to create GBR is expected to be presented to Parliament next year. In the meantime, the DfT has established Shadow GBR to prepare the groundwork for the introduction of the entirely publicly owned railway.
The DfT adds that DfT Operator will focus on improving operations and financial sustainability to transform Britain’s railways into a more reliable, affordable and accessible system, while supporting the government’s “number one priority” of boosting economic growth by encouraging more people to use rail.
“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 DfT says.
It expects the transfer of all passenger services operated under contract with the DfT to complete as their respective contracts expire over the next three years.
“While today’s announcement marks a major change, the government’s first priority is ensuring the transition process is thorough and delivers the best outcomes for passengers,” the DfT says. “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.”
