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| Northern rail franchise to be renationalised | Northern rail franchise to be renationalised |
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| Decision by transport secretary, Grant Shapps, comes after years of cancellations and delays | Decision by transport secretary, Grant Shapps, comes after years of cancellations and delays |
| The Northern rail franchise is to be renationalised, the government has announced, with the state operator of last resort taking over the running of the struggling network from 1 March. | The Northern rail franchise is to be renationalised, the government has announced, with the state operator of last resort taking over the running of the struggling network from 1 March. |
| The decision by the UK transport secretary, Grant Shapps, will be welcomed in the north after years of widespread cancellations and delays for passengers. | |
| The Northern franchise has been run by Arriva since 2016 but the operator’s ambitious plans to modernise and expand train services have given way to a grim reality of worsening punctuality and reliability, and a failure to achieve promised improvements. | The Northern franchise has been run by Arriva since 2016 but the operator’s ambitious plans to modernise and expand train services have given way to a grim reality of worsening punctuality and reliability, and a failure to achieve promised improvements. |
| In a written ministerial statement, Shapps said: “This is a new beginning but it is only a beginning. Northern’s network is huge and complex and some of the things that are wrong are not going to be quick or easy to put right.” | In a written ministerial statement, Shapps said: “This is a new beginning but it is only a beginning. Northern’s network is huge and complex and some of the things that are wrong are not going to be quick or easy to put right.” |
| He said a cross-industry rail taskforce would be set up to help north-west England’s railways recover, while the new state operator would produce a masterplan of local infrastructure improvements needed to help services run smoothly. | |
| Shapps announced earlier in January that Northern’s finances meant that the current franchise arrangement could only last months and he was considering the best option for the taxpayer and passengers. However, he decided against accepting proposals from Arriva for a short-term management contract, which northern transport authorities had described as a “reward for failure”. | Shapps announced earlier in January that Northern’s finances meant that the current franchise arrangement could only last months and he was considering the best option for the taxpayer and passengers. However, he decided against accepting proposals from Arriva for a short-term management contract, which northern transport authorities had described as a “reward for failure”. |
| Northern argues that many of the factors were out of its control, such as postponed infrastructure upgrades that affected the rollout of more electric trains, leading to the prolonged retention of the infamous Pacer trains. Meanwhile, a long-running dispute with the RMT union led to widespread strikes. | |
| The decision means that the Conservatives have nationalised two major rail franchises in less than two years, after taking over the East Coast line in June 2018, now run as LNER after the collapse of Virgin Trains East Coast. | |
| Shapps last week admitted that the future of another, South West Railway, was in doubt, after the First Group-MTR joint-venture said it was running out of cash. Questions also hang over the TransPennine Express and West Midlands Trains franchises. | |
| Shapps admitted that the privatised model was not working, saying: “We know change is needed and change is coming.” | |
| Renationalisation is unlikely to have immediate implications for staff or the travelling public. Virtually all employees are likely to be retained – at LNER, even the management team from Virgin remained in place – and operational problems will persist. However, the decision will be more palatable to unions, northern politicians and passengers, who have demanded action to improve services. | Renationalisation is unlikely to have immediate implications for staff or the travelling public. Virtually all employees are likely to be retained – at LNER, even the management team from Virgin remained in place – and operational problems will persist. However, the decision will be more palatable to unions, northern politicians and passengers, who have demanded action to improve services. |
| Unions warned that Northern would need “significant investment” to turn it round. Mick Whelan, the general secretary of Aslef, the train drivers’ union, said: “We welcome today’s decision because we want the railway in public ownership but let’s do it properly, with a clear, long-term, strategic vision, not just as a short-term response to the years of franchised failure.“There won’t be an immediate improvement because many of the systemic failures at Northern cannot be remedied overnight.” | Unions warned that Northern would need “significant investment” to turn it round. Mick Whelan, the general secretary of Aslef, the train drivers’ union, said: “We welcome today’s decision because we want the railway in public ownership but let’s do it properly, with a clear, long-term, strategic vision, not just as a short-term response to the years of franchised failure.“There won’t be an immediate improvement because many of the systemic failures at Northern cannot be remedied overnight.” |
| The RMT union predicted the decision would “open the floodgates” for other franchises to be taken in to the public sector. | |
| Mick Cash, the general secretary, said it should not be a short-term fix: “This has to be a permanent move followed up with the investment and planning needed to deliver the rail services that passengers deserve after years of privatised chaos.”A root-and-branch review of the rail industry, which will recommend replacing the current system of franchising, has been completed by the former British Airways boss Keith Williams but is yet to be published by the Department for Transport. | |
| Northern is the biggest franchise in England by the length of its route network and serves more than 500 stations north of Derby. It also receives the biggest state subsidy for its operations, running at £763m last year, including indirect funding for track access. | |
| Passengers in Manchester had few good words to say for Northern but were mixed in their view of whether nationalisation would help. | Passengers in Manchester had few good words to say for Northern but were mixed in their view of whether nationalisation would help. |
| Simon Kendall, 45, a freelance IT consultant, said his 30-minute commute from Littleborough to Salford Central was often “nothing but appalling”, with trains often delayed, cancelled or overcrowded, with fewer carriages than usual. “I was on a train last year and rain was coming in through the roof, and newspapers were used to mop up the water.” | |
| However, he said: “I’m not sure whether public ownership will work unless they decide to invest in the infrastructure. Northern rail has had no real investment for years and it’s a service that is used heavily by the public. Why spend money on HS2 when it’s the local rail networks that really need investment? Northern transport has been neglected for far too long.” | However, he said: “I’m not sure whether public ownership will work unless they decide to invest in the infrastructure. Northern rail has had no real investment for years and it’s a service that is used heavily by the public. Why spend money on HS2 when it’s the local rail networks that really need investment? Northern transport has been neglected for far too long.” |
| Ursula Katz, 75, who travels three times a week from Hebden Bridge into Manchester to look after her grandchildren, said her service was often delayed or cancelled, especially at weekends. “The trains only run hourly and then they’ll cancel it and you have to wait an hour for the next one, and then it’s standing only,” she said. | |
| “I’m all for nationalisation of the trains. These franchises make life difficult for commuters, profit a lot and don’t reinvest. I hope that nationalising will make things better.” |