New trains could be publicly owned rather than leased as part of a new strategy being considered by the government.
Speaking at party conference in Liverpool, Transport Secretary Heidi Alexander said, under a new Rolling Stock and Infrastructure Strategy, Great British Railways (GBR) will assess on a case-by-case basis whether public ownership, leasing or other financing arrangements offer the best value for taxpayers and farepayers.
Leasing will remain in place for existing contracts but will no longer be treated as the default option when new trains are procured.
For nearly three decades, most passenger trains have been owned by rolling stock companies and leased to train operators.
The government said leasing and maintenance costs trains cost taxpayers and passengers more than £4 billion a year. Office of Rail and Road figures also show that yearly dividends from rolling stock companies totalled more than £2.5 billion over the past 10 years.
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The strategy forms part of the government’s wider plans to bring the railways under greater public control through GBR, with the aim of creating a more joined-up system for passengers.
It sets out plans for trains, infrastructure and maintenance to be planned more closely together, with the government saying this could improve reliability and allow operators and infrastructure managers to work together more effectively.
Future trains are also expected to have improved passenger information systems and more consistent digital connectivity.
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GBR will prioritise the social benefits of future contracts, particularly skills and jobs, with the government saying successful contracts should create opportunities for workers across the UK and support businesses and supply chains.
Alexander said the plans would address what she described as “hidden challenges” holding the railway back.
She said: “That’s why, as we set up Great British Railways, we will explore whether the state can directly own the new trains we order, helping to ensure our railway delivers the best possible value for passengers.”
Alexander added: “Labour is committed to bringing the essentials in life back under stronger public control, opening up opportunities for people across the country and supporting economic growth in every postcode. This announcement is another step towards delivering that mission.”
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