UK Labour Party "Will Renationalize Railways if in Power"

"Rail Operations Should Be Transferred to the Public Corporation GBR"

The UK's main opposition party, the Labour Party, has expressed its intention to renationalize the railways for the first time in about 30 years if it wins the general election scheduled for this year. Labour is currently leading the ruling Conservative Party by a 20 percentage point margin in opinion polls, making a change of government highly likely.

According to major foreign media reports on the 25th (local time), Labour plans to transfer passenger train operations from the private sector to the public sector within five years if it comes to power. The party intends to fully implement the operation of the state-owned railway company 'Great British Railway' (GBR) and hand over passenger train operating rights to GBR. Contracts with private companies will be terminated early if necessary. This plan does not include the rail freight sector.

Labour argues that by reducing overlapping costs and shareholder dividends, it can save ?2.2 billion (about 3.8 trillion KRW) annually and improve issues such as frequent delays, cancellations, and overcrowded carriages. Lewis Hay, Labour’s shadow transport secretary, said, "Labour will bring about the biggest transformation of this generation," and proposed measures such as a guaranteed best price scheme and automatic refunds for train delays.

British railway photo. [Photo by Reuters-Yonhap News]

The Conservative government and private companies oppose the renationalization of the railways, arguing that costs will increase and fares will rise as a result. The railway industry points to the doubling of passenger numbers between the mid-1990s, after railway privatization, and 2019 as evidence of privatization’s efficiency. Andy Baggnal, head of 'Rail Partners,' the representative body of the railway industry, said, "Renationalization is a political solution, not a practical one," adding, "If the commercial perspective is lost and renationalization costs increase, it will ultimately lead to service deterioration or increased subsidies."

Meanwhile, the UK government currently directly manages about 40% of major routes within the country. The UK railways were privatized in the mid-1990s, but private operators fell into financial difficulties. The Conservative government announced a policy in 2021 to maintain railway privatization while establishing the public company GBR to centrally manage contracts with private railway companies. However, full-scale operation has been delayed.