Passenger Railway Services (Public Ownership) Act 2024

An Act ending passenger rail franchising and directing services to be provided by public-sector companies instead. It amends the Railways Act 1993 to ban franchise extensions and new franchises, requires direct awards of public service contracts to public-sector operators, and introduces a temporary continuation mechanism for existing franchises; it also defines a public-sector company and applies related duties, including the public sector equality duty.

Two Lords amendments are being considered to the Passenger Railway Services (Public Ownership) Bill. Amendment A would insert a purpose clause stating the act aims to improve passenger railway services and require the Secretary of State to have regard to that aim; the Commons say it is unnecessary. Amendment B would introduce a new clause on termination of existing franchise agreements (including ranking by performance and when break clauses can be used), but the Commons say it would alter financial arrangements.

Lords amendments would (1) insert a purpose clause stating the Act’s aim is to improve passenger railway performance and require the Secretary of State to have regard to that aim, and (2) add a new clause (25B) allowing termination of existing franchise agreements for default, ranking them by performance with criteria to be set after consultation, and permitting break-clause termination only if no worse-performing contracts remain and a public sector operator would improve service. The Commons disagree with both: the purpose clause is considered unnecessary, and the termination provisions would alter the Commons’ financial arrangements.