UK government looks at buying its own trains again

Key Points

GBR will weigh public ownership against leasing for every new train order
Train leasing and maintenance costs over £4 billion a year
Rolling stock firms paid £2.5 billion in dividends over 10 years
Existing leases stay, but leasing is no longer the default
Battery-powered trains to help replace diesel across the network

The UK government may buy new trains outright rather than lease them, under a strategy it set out on 28 September.

Great British Railways (GBR) will now assess each new train order to decide whether public ownership, leasing or another financing arrangement offers taxpayers and fare payers the best value.

For more than 30 years, rolling stock companies have owned most UK passenger trains by default and leased them to train operators.

Leasing and maintenance costs for trains cost taxpayers and passengers more than £4 billion a year, the government said.

The Office of Rail and Road reports that rolling stock companies paid out more than £2.5 billion in dividends over the last 10 years.

Existing leasing contracts will stay in place, but GBR will no longer treat leasing as the default choice for new trains. The government said buying trains outright could deliver substantial savings in some circumstances.

The rolling stock and infrastructure strategy also marks the first time in 30 years that the railway will plan trains, track, depots and maintenance together through GBR.

Contracts will prioritise social benefits, mainly skills and jobs for the UK workforce.

Battery trains to replace diesel

GBR will progressively replace diesel trains with cleaner technologies, and the government expects battery-powered trains to play a role alongside ongoing electrification.

The strategy follows a £1 billion deal with Alstom for a new fleet of UK-built battery-powered trains for the Transpennine Route Upgrade. The government said the order secures hundreds of jobs in Derby and thousands more across Alstom’s supply chain.

Future trains will carry improved passenger information systems and more consistent digital connectivity, the government added.

GBR also plans “fleet families”, which standardise designs across train types so passengers get consistent, accessible trains and operators can move them more freely across the network.