The UK government has taken a major step toward overhauling its railway system, with South Western Railway becoming the first private train operator to be renationalised under Prime Minister Keir Starmer’s Labour government. The move marks the beginning of a broader plan to return all English rail services to public ownership within the next two years.
Announcing the development on Sunday, Starmer said the decision aims to “put passengers first,” promising better services, simpler ticketing, and more comfortable trains. South Western, which serves London and parts of southern England, is now under state control after years of passenger frustration with high fares, frequent cancellations, and complex ticketing systems.
Labour’s transport reforms follow the party’s victory in last year’s general election, ending 14 years of Conservative rule. The rail renationalisation policy was central to Labour’s campaign pledge to improve public services and rebuild trust in the country’s ailing transport network.
Four of England’s 14 rail operators were already in public hands due to poor private sector performance, but these were initially seen as temporary measures. New legislation passed in November now allows the government to assume control of train services as private contracts expire or in cases of mismanagement, consolidating them under a new public body called “Great British Railways.”
Transport Secretary Heidi Alexander hailed the move as a way to end “30 years of fragmentation,” while cautioning that visible changes for passengers may take time. For instance, South Western’s first day under public control included a rail replacement bus service due to ongoing engineering works.
Rail unions have welcomed the shift. Mick Whelan, general secretary of train drivers’ union Aslef, said, “Everyone in the rail industry knows that privatisation didn’t, and doesn’t, work.”
The government estimates that renationalisation could save up to £150 million annually by eliminating compensation payments to private firms. With two more operators expected to be renationalised by the end of 2025, a third of all UK rail journeys are now on publicly owned services.
While Scotland and Wales already operate state-owned rail systems under devolved administrations, England’s transition marks a significant shift in national transport policy, prioritising public benefit over private profit.