Welcome to my Blog

I am a semi-retired former Scottish trade union policy wonk, now working on a range of projects. This includes the Director of the Jimmy Reid Foundation. All views are my own, not any of the organisations I work with. You can also follow me on Twitter. Or on Threads @davewatson1683. I hope you find this blog interesting and I would welcome your comments.

Tuesday, 27 July 2021

UK rail policy in transition

One of the many things I enjoyed about working for UNISON was the range of issues we covered. While some days I wished I worked for a single industry union, it was rarely dull! However, I have always loved railways, and that was an industry we didn't cover. So, when a European think tank asked me to write an overview of UK rail policy as part of a Europe wide paper, I jumped at the chance.

 

I wrote the paper at a time when the industry is potentially entering a period of significant change. The UK Government has published the Williams/Shapps plan for rail, ‘Great British Railways’.  The Scottish government has followed the Welsh government lead and announced the Dutch firm Abellio would stop running the ScotRail franchise at the end of March 2021. After this, an "arms-length" Scottish government company will take over the running of services. This highlights the different approaches devolved governments can take, although non-ScotRail services in Scotland, the sleeper and main lines to England will still come under the UK plan.



The UK plan concedes that the privatised railway wasn’t working before the pandemic. Not a small concession from a Tory government, but difficult to avoid given the timetable shambles and the East Coast franchise debacle. The pandemic is the primary driver for change. As commuters made up 47% of all rail passengers, a further 10% travelled for business meetings, and 5% were shopping. In other words, around two-thirds of passengers were using the railways for purposes that now face potentially permanent change. The plan makes further commitments, including “a modern, improved experience for both freight customers and passengers and zero carbon trains. We are growing the network, not shrinking it.” However, they also say the current sums being paid to operate and maintain the railways are not sustainable. So, change has to be done on the cheap, as many of the costly aspects of privatisation remain unchanged. They anticipate that system simplification alone will save around £1.5 billion a year, equivalent to 15% of the network’s pre-pandemic fares income.

 

A new public body, Great British Railways, will own the infrastructure, receive the fare revenue, run and plan the network and set most fares and timetables. Great British Railways aims to simplify the current confusing mass of tickets, but it will contract with private companies to operate trains to the timetable and fares it specifies. This is similar to the system used by Transport for London (TfL) on its successful Overground and bus networks.

 

It remains to be seen if this plan ushers in a “new golden era for the railways”. Industry groups gave the ambition a cautious welcome but highlighted the lack of detail. The rail unions were more scathing. ASLEF’s Mick Whelan said: 'Under these plans the private companies will still pocket a profit, but all the risk – the revenue risk – is being dumped back on the public purse. The government is changing the model but protecting the privateers, and privatising any profit. We believe in a great British railway – in the public ownership of a public service – where the wheels and steel – the locomotives, carriages, and the rails on which they run – are brought back together in a vertically-integrated operation to benefit businesses and passengers.”. RMT general secretary Mick Lynch said, “If the government were serious about recognising ‎the impact of failed rail policy down nearly three decades, they would cut out the middleman, strip away the dead weight of the private companies and work with their staff on building a transport system fit for the future where investment in the workforce and infrastructure comes first.”

 

The unions were much more welcoming of the devolved administrations' approach. TSSA's Manuel Cortes said, “The COVID-19 pandemic made it abundantly clear that our railways are a public service, not a piggy bank for fat cat shareholders. And Welsh Labour showed the way when they nationalised the railways earlier this year.”

 

Significant though these changes are, many other issues need to be addressed. I covered many of these in my paper, including:

  • The pandemic has not gone away. I write this blog post on a train to London with two different sets of rules on the wearing of masks. No longer compulsory once we reached Carlisle, although patchily observed in Scotland. The failure of rail operators to publish research on COVID risks is not encouraging.

  •  Delivering rail on the cheap also brings other safety concerns. The 30th anniversary of the Newton rail disaster reminds us of the consequences. As ASLEF’s Kevin Lindsay said, “It is vitally important that we work, every day, to improve the safety of our railway and do nothing to compromise the safety of passengers and staff."

  • The UK’s transport emissions have hardly changed for three decades, despite fuel efficiency improvements and the recent rise of electric vehicles. Transport accounts for 28% of the UK’s domestic greenhouse gas emissions. The UK transport decarbonisation plan is again strong on rhetoric but weak on implementation detail. Full electrification of the railways is some way off and probably unachievable for rural lines. So, more work is needed on carbon capture of diesel engines and other solutions like battery trains. Sadly, this includes my beloved steam engines, which at least are now being built in Scotland. This is after all Love Your Railways week, which aims to raise awareness of every heritage railway across the country.

  • The financial consequences of the pandemic have been highlighted in the Public Accounts Committee report on the English rail system. The need to deliver affordable rail fares will be critical in getting passengers back onto the railways. For example, Scots travellers can pay up to 70% more to travel by train than the plane, particularly on cross-country journeys.

  • We also need to link railways to an industrial strategy. The Welsh Government developed an industrial strategy for building at least half of all new trains in Wales, but Scotland or the rest of the UK has no equivalent. The risk is that we repeat the shambles of failed procurement policies in the renewable energy sector. Rail freight also needs to be able to operate on a level playing field with passenger services.

Policy responses to the pandemic put some vital sticking plasters in place, but there are some real 'where next?' questions to answer. These will have significant implications for the balance between public transport, cycling, walking and the car - and how we achieve a rapid transition to a zero-carbon transport system. For railways, the solution is best summed up by ASLEF, “The only sensible way to run our railway is with wheels and steel together, with public ownership and operation.”


Keir Hardie understood this more than a century ago!