South Western first rail firm brought into public ownership - with c2c and Greater Anglia to follow

South Western Railway’s services will be the first to transfer into public ownership next year, it's been confirmed.

Ministers said the move paved the way for a "major shake-up" of Britain’s railways - with Greater Anglia and c2c to follow.

The government said the transition to a publicly owned railway will improve reliability and support its 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, it was claimed.

South Western’s franchise contract is due to expire in May of next year, and c2c’s in July.

Greater Anglia has reached a stage in its contract that allows the government to issue an expiry notice and give a date for the transition, which will take place in autumn 2025.

The government said the change will save up to £150 million a year in fees alone by ensuring money is spent on services rather than private shareholders.

Wednesday's announcement will see services across southern England and East Anglia come back into public control by autumn 2025.

The government said it delivers on Labour’s manifesto commitment to bring contracts with existing rail operators into public ownership as they expire without costing taxpayers a penny in compensation.

Transport Secretary Heidi Alexander said said she expects the move to reduce cancellations and late trains on those lines, but rail fares are still expected to go up.

"For too long, the British public have had to put up with rail services which simply don’t work," she said.

"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 repair and rebuilding a system that the British public can trust and be proud of again."

South Western operates across the south of England, while c2c runs trains across Essex into Fenchurch Street. Greater Anglia serves Norfolk, Suffolk, Cambridgeshire, Hertfordshire and Essex into London.

Mick Whelan, general secretary of Aslef, the train drivers’ union, said: "This is the right decision, at the right time, to take the brakes off the UK economy and rebuild Britain.

"John Major’s decision to privatise British Rail in 1994 was foolish, ideologically-driven, and doomed to fail. It was described even by that arch-privateer Margaret Thatcher as “a privatisation too far” and so it proved.

"The privateers have taken hundreds of millions of pounds from our railways and successive Conservative governments have pursued a policy of managed decline which has sold taxpayers, passengers, and staff short."

Rail, Maritime and Transport union General Secretary Mick Lynch said: "This is a significant step forward for passengers, rail workers, and those who want to see an efficient rail system run for the public good, rather than private profit.

"Bringing infrastructure and passenger services under one employer in public ownership, means proper investment in operations, harmonising conditions for staff, and prioritising the needs of passengers."

Gareth Bacon, the Conservative shadow transport secretary, said: "Labour have voted against our plan to strengthen the rights of passengers and commuters.

"We are concerned that the Government’s plans are simply an ideological undertaking that does not put passengers first."

Transport Salaried Staffs’ Association general secretary Maryam Eslamdoust said: "This is an historic moment for the rail industry, marking the beginning of the end for the Tories’ failed privatisation experiment.

"The move will mean better value for taxpayers and better services for rail passengers. It recognises that railways should be run as a public service rather than as a cash cow for shareholders.

"We welcome the Labour Government’s recognition of the expertise and experience that railway staff – our members – possess are crucial to the changes they want to see in the sector.

"We look forward to working with them to deliver the 21st-century railway that Britain’s workers deserve."

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...