New trains could be publicly-owned rather than leased, as part of plans set out on Monday 28 September by the Government in a new strategy for trains and infrastructure.
For the first time in 30 years, the railway will take a coordinated approach through Great British Railways (GBR) to decide on trains, track, depots, and maintenance, ensuring investment is planned across the entire network instead of in isolation.
The Rolling Stock and Infrastructure strategy sets out a new policy for future train procurements. For the first time, GBR will assess whether direct public ownership, leasing or other financing arrangements offer the best value for taxpayers and fare payers.
The Government’s decision to take back public control over the railways aims to create a more joined up system that puts passengers first, delivers better and more reliable services, and leaves the fragmentation of the past behind.
For more than three decades, most passenger trains have, by default, been owned by rolling stock companies and leased to operators. Now, GBR will take a take case-by-case approach to new trains and consider whether private or public ownership gives taxpayers the best overall value.
Leasing and maintenance costs for trains costs taxpayers and passengers more than £4 billion a year, and the Office of Rail and Road (ORR) reports that yearly dividends from rolling stock companies totalled more than £2.5 billion over the last 10 years.
Leasing will remain in place for existing contracts, but it will no longer be treated as the default choice for new trains. In some circumstances, buying trains outright could offer substantial savings for passengers and taxpayers.
This strategy follows the recent announcement that saw Alstom receive £1billion investment for a brand-new fleet of UK made battery powered Great British Railway trains for the Transpennine Route Upgrade, securing hundreds of jobs in Derby and thousands more across their supply chain.
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.
The strategy also includes plans for ‘fleet families’ which create a more standardised design across train types, providing more consistent and accessible trains so passengers always know what to expect and trains can be used more flexibly across the network.
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