Railways Bill

Baroness Alexander of Cleveden Excerpts

2nd reading
Tuesday 7th July 2026 Lords Chamber

[Baroness Alexander of Cleveden (Lab)]

My Lords, like the noble Baroness, Lady Grey-Thompson, I am going to start with a personal anecdote, but it will not be either as moving or as consequential as the ones we have heard from her today. I pay tribute to her campaigning work on this issue; I am sure that sentiment is shared by other Members of the House.

On a Friday, when I get to Euston and am heading north, I yearn for the toilets to work, effective wifi and a quiet coach. By the time I get back to London on a Monday, as a commuter, I am looking at “Am I going to get a seat? Is it reliable? Is the price fair?” Of course, a top-class railway that is spending £22 billion annually—with more than half of that taxpayer subsidy—arguably can and should provide all these things and more, and I have not even mentioned the other neglected priorities of electrification, extreme weather resilience, modal shift, new services, safety, speed, fresh sandwiches and so on.

All these competing ambitions make a wider point in that they concern the choice of priorities, yet the essence of the claim in the Bill is that the delivery of future policy priorities can follow only from getting the basic underlying structure right. The Bill is a fresh start. It legislates for an outcome that the Conservatives recognised the case for but did not act on: the need to end the fragmentation and to bring track and train together. The noble Baroness, Lady May, graciously hinted at the value of bringing track and train together. I share her concern for passenger voice as a live issue and regional influence, but I am mindful that I am to be followed by the noble Lord, Lord Redwood, who I anticipate having a slightly more ideological engagement about the merits of privatisation versus nationalisation; I promise to say a word on that later.

I think that the public’s first concern is simply a service that works. The Bill builds around an evidence case that fragmentation is holding our railways back. The Minister noted that we have 17 different bodies, so unifying track and train under a single organisation is designed to work for passengers, freight and the taxpayers. For the first time in a generation, we will have a single arm’s-length body that is unambiguously accountable for making the railways work. Of course, a new structure could potentially drive out the very large existing inefficiencies, and it is the prerequisite for dealing with the prevailing culture, which is one of blame, then negotiation and then compensation.

Despite those vital changes, the trade-offs between affordability and reliability, and between subsidy reduction and network upgrades, will remain, so I welcome that, when it comes to setting priorities, the Government have given us a flavour. They are about to publish a long-term rail strategy that will have five core objectives, two of which will deal with long-term economic growth and reducing regional inequality.

We need to reorientate our railways to our long-term ambitions for the nation. Two hundred years ago, railways were the new general-purpose technology of their day. Today’s general-purpose technology is AI, and quantum will follow. Again, we face as a country the creative destruction that is changing our economic geography in the same way as railways first shaped our economy, our geography, our leisure and our landscape.

Great British Railways should be tasked with supporting a faster-growing economy. This is a time of profound change. We need it to break down barriers of opportunity, reduce journey times, improve connectivity and stimulate regeneration and housebuilding next to stations.

Let me come beyond the rhetoric, to the relief of the other side, to the challenges that come with establishing a single organisation. Great British Railways, when it is fully established, will employ 100,000 people. It will be the country’s largest arm’s-length body. The stakes are high. On the plus side, public ownership avoids the siphoning off if dividends and profiteering. However, we must also mitigate the known risks. Monolithic organisations can be deaf to key interests, captured by other interests, slow to innovate and risk averse. These are not insuperable challenges. Many nations manage to have fast, reliable, successful railway systems, and so should the nation where it all began. The structural changes will need to be coupled with political and organisational leadership. To meet public expectations, we will need better regulation rather than more regulation. To encourage the self-sufficiency of the system and manage the burden on the taxpayer, the House of Commons Transport Select Committee suggested that we should be setting a passenger growth target to incentivise commercially minded improvements.

When it comes to nurturing innovation, the Minister will be aware of the ongoing anxieties, notably from the open access operators. They account for only 1% of services but they are responsible for 19% of the new train orders in recent years, so we need to make sure that they find their place. They have been successful in securing modal shift on the Edinburgh to London route and elsewhere.

In my few remaining minutes I come to the issue of devolution of decision-making, clear accountability and speed of decision-making. This touches on some of the anxieties that the noble Baroness, Lady May, raised about regional input. Britain’s devolution landscape is complex, highly varied and very fast evolving. Others have referenced the new Member for Makerfield. I welcome that the Bill provides for the devolved Governments in Wales and Scotland and the combined mayoral authorities to have a statutory role in the rail network, but I would welcome reassurance on how this will work in practice. Can we expect to see any of the mechanisms for clear accountability, locally and nationally, during Committee? As a signal of intent of their commitment to working with the devolved Governments and mayoral authorities, will the Government look at developing shared evidence bases that will allow for the stronger business cases that will allow us to move over time to local commissioning? Finally, on ticketing, I will say only that it must be right to consolidate 55 million different ticket types that are allegedly available and make it easier for the passenger to find the most affordable fare.

In conclusion, I say that this Bill is a bold statement. That is important. It is not always that Members on this side can stand and say, “This is a bold statement about the way forward”. We as a Government have been accused of timidity. This is a bold statement to fix a problem that has frustrated passengers, railway staff and the railway industry for too long. It begins a process of evolution from today’s semi-privatised rail network to a nationalised railway, but the essence is to bring track and train together and end 30 years of experimentation, unlocking growth and delivering efficiency in the network. I commend the Bill and look forward to Committee.