The government has announced the Northern Rail franchise will be taken back into public ownership, with control due to be handed over to the Operator of Last Resort (OLR) from 1 March.
Transport secretary Grant Shapps told Parliament last year that he was opening a request for proposals on the franchise after passengers had suffered months of disruption. At the time, he said he was considering all options, including nationalising services.
But earlier this month, Shapps revealed that his investigation into Northern’s finances showed the franchise was no longer sustainable and could only continue “for a number of months”.
Today he confirmed to Parliament the franchise would be taken away from current operator Arriva Rail North on 1 March 2020, at which point services will be handed to a public-sector firm.
The so-called operator of last resort is owned by the Department for Transport (DfT) and already manages the day-to-day running of London North Eastern Railway (LNER). Shapps claimed passenger satisfaction on that franchise has risen in the 19 months since LNER was given control.
Making his announcement today, Shapps said: “For too long, millions of rail passengers in the north of England have not had [a reliable service]. They have had to start and end their working day facing cancellations and delays. Some stations, particularly on Sundays, have been left without trains for hours on end.
“It’s no surprise that passengers have lost trust in the north’s rail network. The service provided by the rail network in the north has failed to meet the needs of passengers. People across the north deserve better, their communities deserve better and I am determined to achieve that.”
He added: “This is a new beginning for Northern, but it is only a beginning. Northern’s network is huge and complex; some of the things which are wrong are not going to be quick or easy to put right. Nonetheless, I am determined that Northern passengers see real and tangible improvements across the network as soon as possible.”
Under Shapps’ plans, the roll-out of new trains will continue, with out-dated Pacers to be “banished very soon on the western side of the Pennines”. In Yorkshire, the old stock is due to be gone by this spring.
The government will also utilise technology to identify “crowding pinch points” to determine which stations and routes need the most trains. Platforms at 30 stations will also be extended to allow for longer rolling stock.
Shapps has instructed the public-sector operator to prioritise building on an agreement with ASLEF to improve reliability of Sunday services and reduce the number of cancellations.
He has also asked Robin Gisby and Richard George, who lead the operator, to prepare a plan for their first 100 days “to make sure we leave no stone unturned in improving this franchise for passengers”.
Further to the Office of Rail and Road’s determination that Network Rail has not performed up to standard in areas of the north when it comes to infrastructure improvements and reliability, Shapps said: “Many of Northern’s problems are due to inadequate infrastructure. That, too, must change – though inevitably it will take longer than some other improvements.”
He has instructed the operator to work with Network Rail to build “a comprehensive new masterplan to review congestion around Manchester” and determine a plan to deliver the necessary improvements.
Shapps added: “The vast majority of Northern’s trains pass through Leeds or Manchester, often picking up delay as they do. Improving the railway in these cities will have knock-on effects for passengers across the north of England.”
Despite agreeing that Northern’s services have been unreliable, Shapps said the decision to nationalise the franchise is “in no way a reflection on Northern’s dedicated and hard-working staff”.
“Staff have had an incredibly tough job to do in challenging circumstances. I want to reassure them that their jobs are safe and they will be transferred to the public-sector operator on their existing terms and conditions. I recognise that many staff facilities are not up to scratch and have asked the public-sector operator to look closely at making improvements.”
Shapps also addressed the questions around the future of rail privatisation that could arise from the latest re-nationalised franchise, saying the upcoming Williams Review is looking at reforms across the railway.
Responding to the news, Chris Burchell, Arriva MD of UK trains, commented: “We had a clear vision for the Northern franchise that would better connect the cities of the North with more frequent, reliable and modern services and unlock economic growth. It was clear, however, that, largely because of external factors, the franchise plan had become undeliverable. A new plan is needed that will secure the future for Northern train services. As such, we understand government’s decision today.
“I would like to recognise the hard work of the 6,000 strong team at Northern who have worked tirelessly over the last four years to deliver improvements to local rail services in the North, at times under extremely difficult conditions.
“The scale of the challenges we faced outside of our direct control were unprecedented, particularly around delayed or cancelled infrastructure projects and prolonged strike action. Despite the challenges, the team has introduced brand new trains onto the network for the first time in a generation…
“We recognise, however, that overall service improvements have not come quickly enough, and passengers deserve better. For that, we wholeheartedly apologise. We now stand ready to support government and the Operator of Last Resort to ensure a smooth transfer for our passengers and colleagues alike. I am confident that as a result of the determination and hard work of the Northern Rail team, they have helped set strong foundations for future improvement on the network.”