UK railways: Theresa May 'considering major review of future of network' as anger at disruption grows

Tories may hope probe will help them oppose calls to nationalise train system

Theresa May is considering commissioning a major review of the future of Britain’s railways amid growing anger with the performance of the network.

It is understood that Downing Street is contemplating whether an overall inquiry would prove more effective than looking separately at issues such as franchising, fares and timetabling.

No decision has been made but it is believed that such a move would be supported by transport secretary Chris Grayling.

The Conservatives may hope a rail review will help them oppose calls for returning operation of trains back into public control, which is a key Labour policy.

Mr Grayling was forced to answer accusations from Labour and trade unions that his decision to end the Virgin Trains East Coast (VTEC) franchise early was a “bailout” worth £2bn.

VTEC, a joint venture between Stagecoach (90 per cent) and Virgin (10 per cent), began operating in March 2015.

The firms agreed to pay the government £3.3bn to run trains until 2023, but the contract was ended prematurely after they failed to achieve revenue targets.

A report by the Commons Public Accounts Committee in April found that passengers are paying the price for the “broken model” of rail franchising.

The committee claimed the Department for Transport had “failed to learn the lessons from previous failings” on the East Coast route.

The government also came under fire after it emerged that rail commuters face an increase of up to 3.2 per cent in the cost of season tickets next year.

Passenger groups, unions and politicians reacted with anger after the cap on regulated fare rises was confirmed last month.

Mr Grayling warned that a lower inflation measure can only be used to set fare increases if it is also used to calculate pay rises on the railway.

There have been calls for fares to be frozen following chaos caused by the implementation of new timetables.

Chaos ensued after many train times were changed on 20 May, with passengers in the north and southeast of England suffering delays and cancellations for several weeks.

A series of failures have been blamed, including Network Rail’s late approval of the timetables and delayed electrification projects in the north, poor planning by train operators, and the decision by transport ministers to phase in the introduction of new Govia Thameslink Railway services.

The Department for Transport said in a statement: “Privatisation has helped transform our railway – doubling passenger numbers and delivering more services, extra investment and new trains.

“We are absolutely committed to improving journeys and are always examining ways to improve how the railway serves passengers.”

The prospect of a review was welcomed by Paul Plummer, chief executive of industry body the Rail Delivery Group.

He said: “We have been saying that the time is right for root and branch reform of the railway and any review must leave no stone unturned. It must be all-encompassing, considering franchising, Network Rail and the role of other rail organisations.”

But shadow transport secretary Andy McDonald warned that passengers do not need a review to explain to them that the franchising system is “broken beyond repair”.

He went on: “I can tell the prime minister now that no amount of tinkering will change the fact that rail franchising has failed, does not deliver and never will.”

PA