New strategy to see Government buy trains rather than lease?

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New strategy to see Government buy trains rather than lease?

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Picture of Janine Booth

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Train in the new Great British Railways livery. // Credit: Network Rail
Train in the new Great British Railways livery // Credit: Network Rail

The government has today (Monday 28 September) revealed that it is considering buying rather than leasing new trains.

This would mean that the rolling stock would be publicly owned rather than leased from private companies.

Today’s announcement saw the government set out its plans in a new strategy for trains and infrastructure.

The Labour government is working to reverse the fragmentation of the railway by bringing a coordinated approach through Great British Railways (GBR), and could enhance this reunification by bringing trains as well as their operators into public ownership.

GBR Logo
GBR Logo // Credit: GBR

The Rolling Stock and Infrastructure strategy outlines policy for future train procurements, which will include GBR comparing the benefits and value of direct public ownership, leasing and other arrangements.

The government takes the view that “Stronger public control over essential services like transport will help make sure they are designed and run in the best interests of the public, making them work for people and places again.” GBR will judge each procurement on a case-by-case basis.

The public purse spends over £4 billion a year on leasing and maintenance of trains.

The new policy applies only to the sourcing of new trains, with existing contracts staying as lease arrangements.

The Department for Transport points out that its strategy follows the recent announcement that Alstom will receive one billion pounds to build a new fleet of battery-powered Great British Railway trains for the Transpennine Route Upgrade.

This deal secures hundreds of jobs in Derby, where the trains will be built, and thousands more across the supply chain.  

What the new TransPennine Express trains could look like
What the new TransPennine Express trains could look like // Credit: GBR / Alstom

The strategy provides further certainty for the rail supply chain for the UK by providing the basis for a clearer, longer-term pipeline of investment in trains and infrastructure. Alongside this, GBR will prioritise the social benefits of these contracts, primarily skills and jobs. It will ensure successful contracts provide jobs and opportunities to the UK workforce, giving GBR a central role in supporting UK businesses, strengthening skills and capability in every postcode.    

Passengers will benefit from improved reliability as fleets, infrastructure and maintenance are planned together, while future trains will feature enhanced passenger information systems and more consistent digital connectivity.  

Department for Transport

Responses

  1. We need to remember that many of the aspects of current trains that have been derided, were the result of the Department of Transport accepting impossible promises from manufacturers – the DfT were not informed buyers. Why should GBR be any different?

  2. British Rail, the last fully nationalised UK rail system, owned all its own trains. However, the Govt would never allocate any money for new trains, so the trains got progressively older and more decrepit as the years from nationalisation (in 1948) went by. The 1960s advertising campaign slogan “this is the age of the train” became a source of ridicule.
    It was only when railway privatisation took over and set up the rolling stock leasing companies that the UK finally got some new trains
    I fear the current Govt’s policies will lead to the same result – a steadily aging, less reliable and more decrepit railway system. The trouble is, no-one currently in government is old enough to remember the shambles that was nationalised British Rail.

    1. The taxpayer has indirectly nevertheless fed the private capital, debt & equity black hole of the ROSCO rolling stock provision for a couple of decades or so now & any one in Govt not remembering British Rail can always take a trip on ex British Railways stock still out there to this day on the East Coast for instance.
      Its quite incredulous that anyone can call the latter years of British Rail as a shambles when we consider these last 25 years or so of failed privatisation continually bailed out by the public purse as guarantor.

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