Rail industry slams Labour’s renationalisation policy — warning of higher costs for taxpayers

THE rail industry last night launched a fightback against Labour’s plan to renationalise the railways, warning it will lead to higher costs for taxpayers.

Shadow Transport Secretary Louise Haigh will finally set out today how her party will bring the running of the trains back under Government control.

It comes after months of hold up, with sources saying it was due to internal party disagreements about the policy.

Ms Haigh will insist the taxpayer will not pay a “penny in compensation costs” as train operations will only be brought into public ownership when current contracts expire.

She will announce that while the Government wants to establish Great British Railways (GBR) to oversee infrastructure and contracts, a Labour government would create a unified, publicly owned, and accountable version of GBR, led by rail experts rather than Whitehall.

But the proposal has come under fire from industry bodies, with Rail Partners warning it will lead to increased taxpayer costs and potentially reduced train services.

Rail Partners chief executive Andy Bagnall said: “Train companies agree that change is needed for the railways, but nationalisation is a political rather than a practical solution which will increase costs over time.”

He added: “Over time, the increased costs to the taxpayer of nationalisation due to the loss of commercial focus from private train companies will lead to either reduced train services or increased subsidy.

“That means rail competing for funding with other public services like the NHS. Historically, British Rail often lost this battle.”

Ms Haigh will say: “With Labour’s bold reforms, a publicly owned railway will be single-mindedly focused on delivering for passengers and will be held to account on delivering reliable, safe, efficient, accessible, affordable and quality services.”