Gradually, without really saying it, Boris Johnson unraveled stitch by stitch the Thatcher revolution. After sharply increasing state spending, the Covid-19 pandemic requires, the British Prime Minister is implementing a profound reorganization of the rail system, largely undermining the privatization launched in 1994. Thursday, May 20, the British government announced the creation of a public company which will henceforth oversee the operation of trains in the United Kingdom. “This is the biggest rail change in twenty-five years”, announce Grant Shapps, the Minister of Transport, and Keith Williams, the author of the White Paper which presents the reform.
The two men are very careful not to talk about nationalization. Great British Railways, the new company, will not run the trains itself, but will sign sub-contracts with private companies that will provide the service. The change is however fundamental: “Private companies will no longer take risks on their income”, notes Michael Holden, an independent rail consultant and former chairman of a private train company. Their job will be to run the trains on time, not to fill them. Great British Railways will determine the times, prices and connections to be provided.
Since its inception, the privatization of the rail system has already been greatly reduced. From 2002, the railways were returned to the control of the State. Two serious accidents caused by a lack of maintenance had convinced of the need to put an end to the experiment in this field. To run the trains, private companies have hitherto competed for “franchises”, that is to say regional monopolies giving them fairly broad powers over timetables and prices (even if these the latter remained regulated).
“Problems too obvious”
For users, this does not give the impression of competition: with a few exceptions, most destinations are served by only one company. On the other hand, complexity is essential. Depending on the line, you have to use different companies to buy train tickets. The prices are particularly obscure and fluctuating, with often incomprehensible reductions. “The current rail system is made up of a labyrinth of agreements between hundreds of partners, signed and supervised by battalions of lawyers and consultants”, denounces the White Paper.
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