LABOUR has pledged a railway revival, announcing plans yesterday to bring most of the privatised industry back into public hands.

In proposals broadly welcomed by unions and campaigners, shadow transport secretary Louise Haigh confirmed that train franchises will be taken into the public sector as and when contracts expire if the party wins the next general election.

This will mean the whole network will join infrastructure owner Network Rail in a publicly-run system within the first term of a Labour government.

But the plans will still leave companies owning trains and rail freight and open-access operators in the private sector.

Ms Haigh has had to fight off resistance from Labour’s hard right, who have already forced the abandonment of plans to nationalise water and energy utilities, to the plans.

She has been helped both by the simple popularity of the measure amid huge public frustration with an expensive and unreliable rail service, and by the fact that her proposal will cost no Treasury funds.

Launching Labour’s plan yesterday, Ms Haigh said: “After years of dysfunction and waste our broken railways are unfit to meet the needs of modern Britain.

“Passengers and taxpayers alike are being failed, and our economy is being held back.

“With Labour’s bold reforms, a publicly owned railway will be single-mindedly focused on delivering for passengers.”

Among the elements of the new deal for rail will be a best-price ticket guarantee for passengers, ending years of extortionate confusion, and a Passenger Standards Authority to protect travellers’ interests.

The system will build on plans already agreed by the Tories in integrating the system through a new Great British Railways (GBR) body. 

Four train operators are already state-run following private failures.

Addressing the missing parts in Labour’s plan, Ms Haigh also pledged a long-term strategy for the imperilled train manufacturing sector and a statutory duty on GBR to ensure the growth of rail freight.

Rail unions welcomed the proposals. RMT general secretary Mick Lynch said they were “in the best interests of railway workers, passengers and the taxpayer.”

“For too long private companies have made millions in profit from taxpayer subsidies and in return provided appalling levels of service,” Mr Lynch said.

“This announcement however should be a first step to completely integrating all of our railway into public ownership.

“It is time for a railway fit for the 21st century that serves the public, not the privateers and shareholders.”

Mick Whelan, general secretary of train drivers’ union Aslef, said: “Putting the railways into private hands has led to fragmentation, confused ticketing, increased fares, older rolling stock, and allowed a few companies to make enormous profits which have taken much-needed money out of the sector.

“Bringing our railways back into public ownership means we can invest properly in rail, and build a greener, cleaner, more sustainable transport network which, in turn, will help the economy and build a brighter future for Britain.”

TSSA general secretary Maryam Eslamdoust pledged that “we will not rest on our laurels with this announcement, we will campaign every day to ensure that this is one pledge that Starmer is made to keep.”

“We need full nationalisation now; Labour’s plans do not include nationalisation of the rolling stock companies or freight,” she said.

“There is no reason why failing rail companies should be allowed to make a profit out of any part of our transport system.”

Campaign group Momentum also backed the plan but urged Labour to go further. 

“It’s great to see Labour commit to nationalise rail operators as contracts expire or performance targets are broken,” a spokesman said.

“Why won't the Labour leadership extend its criticism of the failures of privatisation to water, energy and mail? Bringing all our public services into public hands is highly popular and long overdue.”

Rail privateers’ lobby Rail Partners condemned Labour’s plan, with chief executive Andy Bagnall claiming: “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.”