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52-471: Great British Railways ( GBR ) is a planned state-owned railway company that is to oversee passenger rail transport in Great Britain , with the exception of Transport for London , Merseytravel , light rail and tram services. It will assume the existing responsibilities of Network Rail , to become the owner and manager of most railway infrastructure across Great Britain. The publicly-owned body will be

104-415: A government owning all or a controlling stake of the company's shares . This form is often referred to as a state-owned enterprise . A state-owned enterprise might variously operate as a not-for-profit corporation , as it may not be required to generate a profit; as a commercial enterprise in competitive sectors; or as a natural monopoly . Governments may also use the profitable entities they own to support

156-469: A public service, not for private profit", with Mick Whelan , the general secretary of ASLEF , describing it as "the right decision, at the right time". However, the plans were viewed less favourably by the UK's 14 train operators. Andy Bagnall, chief executive of their umbrella organisation, Rail Partners, described the establishment of Great British Railways as "an important milestone", but said "Full nationalisation

208-509: A single, unifying brand for railways, and it is expected that this will be a gradual rebranding over time. English regions, Scotland, and Wales will have their own variants, but these will still emphasise the national nature of GBR. The white paper does not specify whether the branding of devolved railways such as London Overground and Merseyrail will be affected. State ownership In market-based economies, state-owned assets are often managed and operated as joint-stock corporations with

260-423: A specific state institution or branch of government, used exclusively by that branch, such as a research laboratory. The latter refers to assets and resources owned by the population of a state which are mostly available to the entire public for use, such as a public park (see public space ). In neoclassical economic theory , the desirability of state ownership has been studied using contract theory . According to

312-406: A whole. As such, state ownership is only one possible expression of public ownership, which itself is one variation of the broader concept of social ownership. In the context of socialism, public ownership implies that the surplus product generated by publicly owned assets accrues to all of society in the form of a social dividend , as opposed to a distinct class of private capital owners. There

364-550: Is a natural monopoly or because the government is promoting economic development and industrialization . State-owned enterprises may or may not be expected to operate in a broadly commercial manner and may or may not have monopolies in their areas of activity. The transformation of public entities and government agencies into government-owned corporations is sometimes a precursor to privatization . State capitalist economies are capitalist market economies that have high degrees of government-owned businesses. Public ownership of

416-458: Is a political not a practical solution, which will increase costs over time". On the same day the King's Speech was delivered, Starmer announced the establishment of a child poverty task force to investigate how best to support the estimated four million children living in poverty, a figure which was said to have increased by 700,000 since 2010. Skills England , a body whose objective will be to reduce

468-416: Is a process of transferring private or municipal assets to a central government or state entity. Municipalization is the process of transferring private or state assets to a municipal government. A state-owned enterprise is a commercial enterprise owned by a government entity in a capitalist market or mixed economy . Reasons for state ownership of commercial enterprises are that the enterprise in question

520-416: Is a wide variety of organizational forms for state-run industry, ranging from specialized technocratic management to direct workers' self-management . In traditional conceptions of non-market socialism, public ownership is a tool to consolidate the means of production as a precursor to the establishment of economic planning for the allocation of resources between organizations, as required by government or by

572-563: Is desirable. In their model, the government and a private firm can invest to improve the quality of a public good and to reduce its production costs. It turns out that private ownership results in strong incentives to reduce costs, but it may also lead to poor quality. Hence, depending on the available investment technologies, there are situations in which state ownership is better. The Hart-Shleifer-Vishny theory has been extended in many directions. For instance, some authors have also considered mixed forms of private ownership and state ownership. In

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624-522: Is planned to operate in the existing areas of Network Rail, i.e. England, Scotland and Wales. Northern Ireland – where the railway is already operated by the vertically integrated and wholly state-owned Northern Ireland Railways – was explicitly excluded from the scope of the Plan for Rail and rail is not a reserved matter in Northern Ireland. GBR's powers are unconfirmed as of April 2023. However,

676-776: The Household Cavalry . The route was lined with military personnel, including members of the Grenadier Guards , Irish Guards and Coldstream Guards , as well as members of the RAF and Royal Navy . The King and Queen entered the Palace of Westminster through the Sovereign's Entrance , reserved exclusively for the monarch, and changed into the Robes of State , before proceeding to the House of Lords , where

728-604: The Israel–Hamas war . The individuals were detained on suspicion of conspiracy to cause public nuisance. On the morning of 17 July, Samantha Dixon MP , as Vice-Chamberlain of the Household , was " taken hostage " at Buckingham Palace to ensure the King's safe return from Parliament. Charles III and Queen Camilla then travelled from Buckingham Palace to Westminster in the Diamond Jubilee State Coach , escorted by

780-486: The Labour Party won the election earlier that month. The speech outlined 39 pieces of legislation that Labour intends to introduce in the months ahead, including bills to renationalise the railways , to strengthen the rights of workers, tackle illegal immigration , reform the House of Lords , and undertake a programme to speed up the delivery of "high quality infrastructure" and housing. On 30 May 2024, and following

832-558: The Parliament of the United Kingdom took place on 17 July 2024 when King Charles III opened the first session of the Parliament elected in 2024 , which was the first after the 2024 general election . Charles III delivered the King's Speech , his second as monarch , and the first since returning to his public duties after receiving treatment for cancer earlier in the year. The King set out

884-876: The Plan for Rail , these current powers will be unaffected. The Plan states that GBR will co-operate with devolved administrations, but that those administrations will need to work with GBR to improve consistency across the national network. Under Network Rail, all stations are formally in public hands since 2014, but only 20 (mainly large termini and central stations) are managed directly by it. GBR will own all stations and most infrastructure in Great Britain. Existing leases of stations to devolved transport authorities will continue. Dedicated station management teams will be created within regional divisions of GBR to manage stations and land. GBR will develop masterplans for station renewal. GBR will be made up of five regional divisions, organised in line with Network Rail's 'Putting Passengers First' programme. Budgets and delivery will be held at

936-540: The UK government 's legislative programme for the following parliamentary session. Along with Queen Camilla , Charles III travelled to Westminster in the Diamond Jubilee State Coach and was accompanied by the Household Cavalry . At Westminster, the King read the 1,421 word speech from the throne in the House of Lords . The speech was then debated by both Houses of Parliament. July 2024 marked Keir Starmer 's first State Opening of Parliament since becoming UK Prime Minister after

988-640: The UK voting age from 18 to 16 was absent from the programme. Speaking about the voting age, Lucy Powell , the Leader of the House of Commons , told the BBC it remained a government commitment and that she hoped the age would be lowered by the time of the next general election . Starmer had also faced pressure from some of his own MPs, as well as the Scottish National Party , to scrap the two-child benefit cap , but this

1040-598: The West Midlands Combined Authority was appointed as chair of Shadow GBR. The government promised to base the organisation outside London to promote economic growth and skills in a region beyond the capital. In February 2022, the DfT launched a public consultation for the location of GBR's headquarters. In total, 42 towns and cities submitted expressions of interest. A shortlist comprising Birmingham , Crewe , Derby , Doncaster , Newcastle upon Tyne , and York

1092-588: The Williams-Shapps Plan for Rail suggested that GBR will develop rail strategies, manage budgets and operations, own stations and infrastructures and manage the procurement of contracts. Transport Secretary Mark Harper has said that the government will respond to consultation on those powers in summer 2023. Under devolution , a number of powers relating to rail services are devolved to devolved administrations in Scotland, Wales, London and Merseyside. According to

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1144-423: The means of production is a subset of social ownership , which is the defining characteristic of a socialist economy. However, state ownership and nationalization by themselves are not socialist, as they can exist under a wide variety of different political and economic systems for a variety of different reasons. State ownership by itself does not imply social ownership where income rights belong to society as

1196-604: The DfT set up Shadow Great British Railways to start the work of GBR prior to its legal establishment in Parliament. Great Britain's railway system was built by private companies, but it was nationalised by the Transport Act 1947 and was run from then onwards by British Railways (which traded as British Rail from 1965) until privatisation , which was begun in 1994 and completed in 1997. Infrastructure, passenger, and freight services were separated at that time. The infrastructure

1248-489: The Hart-Shleifer-Vishny model it is assumed that all parties have the same information, while Schmitz (2023) has studied an extension of their analysis allowing for asymmetric information . Moreover, the Hart-Shleifer-Vishny model assumes that the private party derives no utility from provision of the public good. Besley and Ghatak (2001) have shown that if the private party (a non-governmental organization) cares about

1300-470: The King would read the speech from the throne. MPs from the House of Commons were summoned to attend the Lords by Sarah Clarke , who holds the office of Black Rod . As a symbol of the House of Commons' independence from the reigning monarch, the doors to the chamber were closed upon Clarke's approach, requiring her to knock three times for it to be opened. Once MPs had assembled in the Lords, Charles III then read

1352-449: The King's Speech. The speech, prepared by the UK government, set out its planned programme of legislation for the next session of parliament, and was read by the King in a neutral tone so as not to show any appearance of political support. MPs listened to the speech in silence, before returning to the Commons, where a debate on the speech began two hours or so later. At 1,421 words, it was

1404-523: The UK and Scottish Governments. Normal passenger service franchise mechanisms were amended, transferring almost all revenue and cost risk to the government, effectively re-nationalising those services temporarily. The new GBR organisation was proposed under the Williams–Shapps Rail Review, which was published as a white paper on 20 May 2021. The review had been launched in September 2018 and

1456-460: The UK's economy and infrastructure while not raising personal taxes. He was keen to change the direction of the country with a raft of new legislation. It was Charles III's second State Opening of Parliament since his accession to the throne in September 2022, and his first since returning to his public duties after being diagnosed with cancer in February 2024, and subsequently receiving treatment for

1508-512: The announcement of the 2024 general election , it was announced that there would be a State Opening of Parliament on 17 July. The election, held on 4 July, was won by the Labour Party , which defeated the incumbent Conservative government after 14 years in office, securing a landslide victory , with Sir Keir Starmer becoming prime minister. The preceding government's tenure had seen high inflation, political scandals and an economic crisis, and Starmer's election campaign had focussed on improving

1560-606: The establishment of GBR, although it has not been timetabled in the Parliamentary programme. The Transport Secretary Mark Harper later told the Transport Select Committee that the legislation was unlikely to reach Royal Assent within the 2023–2024 parliamentary session. Prior to the 2024 general election, the Labour Party confirmed that it would be seeking to bring railways into public ownership, while preserving

1612-481: The establishment of GBR. In October 2022, Transport Secretary Anne-Marie Trevelyan announced that the Transport Bill, which would have set up GBR, would not go ahead in the current parliamentary session. In February 2023, Transport Secretary Mark Harper re-affirmed the government's commitment to GBR and rail reform. The 2023 King's speech announced the progression of a draft Rail Reform Bill which would enable

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1664-467: The general budget. The creation of a state-owned enterprise from other forms of public property is called corporatization . In Soviet-type economies , state property was the dominant form of industry as property. The state held a monopoly on land and natural resources, and enterprises operated under the legal framework of a nominally planned economy , and thus according to different criteria than enterprises in market and mixed economies. Nationalization

1716-551: The government announced that the organisation would be created at first in "shadow" form, pending legislation to formally create it. The chief executives of DfT OLR Holdings and Network Rail and the Director General for Rail Services in the DfT have been tasked with running Shadow Great British Railways in order to "[work] in closer collaboration, bringing together track and train to deliver for passengers and freight users." On 3 October, Laura Shoaf, previously chief executive of

1768-549: The illness. Although the King had stepped back from his public duties for a time, he had continued with his constitutional role, such as private meetings, including those with the prime minister, and paperwork. On the morning of the State Opening, the Metropolitan Police arrested 10 members of the protest group Youth Demand after the organisation stated its intention to disrupt proceedings over Keir Starmer's handling of

1820-463: The local level as well as at the national level. Regional divisions will manage concession contracts, stations, infrastructure, and local and regional budgets, integrate track and train, and integrate rail with local transport services. GBR will use modified forms of British Rail's Double Arrow symbol and Rail Alphabet typeface – Rail Symbol 2 and Rail Alphabet 2 respectively – for its branding. The Williams-Shapps plan recommended that there will be

1872-968: The long term". Daisy Cooper , the deputy leader of the Liberal Democrats , welcomed the proposals on Mental Health Act but called for greater ambition on health and social care. Stephen Gethins of the Scottish National Party, called for the government to reverse the "hard Tory Brexit" arguing it was "the biggest thing pulling back growth", and criticised the government for not removing the two-child benefit cap. Richard Tice , deputy leader of Reform UK , argued Labour's plans would increase tax and lead to greater regulation. Green Party MP Ellie Chowns called for "bolder action" on building regulations and rent controls. Writing in The Guardian , Martin Kettle argued that in his first King's Speech, Starmer

1924-608: The long-term replacement for the previous privatised rail franchising system which lasted from 1996 until its effective abolition in 2021. All train operating companies will be taken into public ownership as their contracts expire and then folded into GBR, reunifying passenger services under one publicly-owned entity for the first time since the privatisation of British Rail . This will not include open-access operators , who will be able to continue running services on selected routes. GBR will be headquartered in Derby . In September 2024,

1976-530: The longest monarch's speech to be delivered to Parliament since 2003. The occasion also coincided with the Queen's 77th birthday. The twelve minute speech included 39 pieces of legislation that Labour hoped to pass during the forthcoming parliamentary session, with a focus on helping to improve economic growth. Chief among these were plans to change planning rules in order to facilitate the building of housing and infrastructure. Plans were also announced to renationalise

2028-525: The means of production may be labelled state socialism . State ownership was recognized by Friedrich Engels in Socialism: Utopian and Scientific as, by itself, not doing away with capitalism, including the process of capital accumulation and structure of wage labor. Engels argued that state ownership of commercial industry would represent the final stage of capitalism, consisting of ownership and management of large-scale production and manufacture by

2080-399: The property rights approach based on incomplete contracting (developed by Oliver Hart and his co-authors), ownership matters because it determines what happens in contingencies that were not considered in prevailing contracts. The work by Hart, Shleifer and Vishny (1997) is the leading application of the property rights approach to the question whether state ownership or private ownership

2132-519: The public good, then the party with the larger valuation of the public good should always be the owner, regardless of the parties' investment technologies. More recently, some authors have shown that the investment technology also matters in the Besley-Ghatak framework if an investing party is indispensable or if there are bargaining frictions between the government and the private party. 2024 State Opening of Parliament A State Opening of

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2184-502: The railways , strengthen the rights of employees, devolve powers to regional mayors, tackle illegal immigration and reform the House of Lords . In addition, a number of bills proposed by the previous Conservative administration were also included, notably the Tobacco and Vapes Bill , which had appeared in the 2023 King's Speech , but had been abandoned after the election was called. However, Labour's election manifesto pledges to reduce

2236-448: The role of open-access operators. In the 2024 King's Speech , the new Labour government announced that GBR would be established by two bills in the current parliamentary session: The "Passenger Railway Services (Public Ownership) Bill", which will bring rail franchises into public ownership as their contracts expire, and the "Railways Bill", which will establish GBR to oversee the passenger and freight rail network. On 3 September 2024,

2288-424: The speech, including public sector pay, which would need to be addressed by the end of July when the public sector pay review for the 2024–25 financial year must be concluded. Failure to do so, he argued, could make government plans to recruit more nurses and teachers more difficult, and even risk further strikes. Plans to renationalise the railways were welcomed by rail unions, who said the industry would be "run as

2340-484: The state's management policies, though these rights are not property rights as they are not transmissible. For example, if a family is allocated an apartment that is state owned, it will have been granted a tenancy of the apartment, which may be lifelong or inheritable, but the management and control rights are held by various government departments . There is a distinction to be made between state ownership and public property. The former may refer to assets operated by

2392-453: The state. Within the United Kingdom, public ownership is mostly associated with the Labour Party (a centre-left democratic socialist party), specifically due to the creation of Clause IV of the "Labour Party Manifesto" in 1918. "Clause IV" was written by Fabian Society member Sidney Webb . When ownership of a resource is vested in the state, or any branch of the state such as a local authority , individual use "rights" are based on

2444-527: The state. State ownership is advocated as a form of social ownership for practical concerns, with the state being seen as the obvious candidate for owning and operating the means of production. Proponents assume that the state, as the representative of the public interest , would manage resources and production for the benefit of the public. As a form of social ownership, state ownership may be contrasted with cooperatives and common ownership. Socialist theories and political ideologies that favor state ownership of

2496-577: Was also not included. Responding to the speech, Leader of the Opposition and Leader of the Conservative Party Rishi Sunak said his party would not oppose the government "for the sake of it", but would hold them to account on their election promises. On proposals to change planning laws, he said that though such changes were needed "a system that does not allow local people to have a say will damage public consent for more housing in

2548-459: Was announced in July 2022, using the following criteria: alignment with " levelling up " objectives; connected and easy to get to; opportunities for GBR; railway heritage and links to the network; value for money; and public support. A public vote was held following the announcement. In March 2023, then Transport Secretary Mark Harper announced Derby as the headquarters location. Great British Railways

2600-567: Was led by Keith Williams . A fortnight before the Williams–Shapps Plan for Rail was unveiled, the Department for Transport (DfT) gave notice of a £6.5   million contract for Deloitte up to February 2023 as its "strategic change delivery partner: rail reform programme". Andrew Haines and Peter Hendy , who were the CEO and chairman of Network Rail respectively, were appointed to oversee

2652-473: Was privately owned and operated by Railtrack from 1994 to 2002, when it was renationalised and transferred to Network Rail . Goods (freight) services are operated by a number of companies , the descendants of those created during the 1990s privatisation. During 2020, in the midst of the COVID-19 pandemic , all passenger train operating companies (TOCs) entered into Emergency Recovery Measures Agreements with

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2704-402: Was taking a long term approach: "trying to balance impatience for change with the inevitability that the process will be gradual". BBC economics editor Faisal Islam suggested that it would "take well into next year before we see any impact on economic growth from these plans". The BBC's Ben Chu observed that a number of challenges inherited from the previous government had not been addressed in

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