Financial reports from the UK Department for Transport or independent financial analyses

Labour to Renationalize South Western Railway in May Under New Law

Dec 4, 2024, 06:00 AM

The Labour government has announced plans to renationalize South Western Railway (SWR), making it the first train operator to return to public ownership under new legislation passed last week. Transport Secretary Heidi Alexander confirmed that SWR's services will transfer into public ownership next year, with the change set to take place in May. The move is part of a major shake-up of Britain's railways aimed at fixing the country's troubled railway system. Other operators, including c2c and Greater Anglia, are scheduled to follow, with c2c coming under public ownership in July 2025 and Greater Anglia in the autumn. All operators are due to be transferred into public ownership within three years. Currently, operators such as LNER, TransPennine Express, Northern, and Southeastern are already government-owned. Labour leader Keir Starmer stated that the renationalization would lead to better services for passengers and better value for taxpayers. However, critics like former Transport Minister Steve Norris expressed concerns over the move, suggesting it could lead to financial losses.