Passenger rail franchising in Great Britain is the system of contracting the operation of the passenger services on the railways of Great Britain to private companies, which has been in effect since 1996 and was greatly altered in 2020, with rail franchising being effectively abolished in May 2021.
The system was created as part of the privatisation of British Rail, the former state-owned railway operator, and involved franchises being awarded by the government to train operating companies (TOCs) through a process of competitive tendering.[1] Franchises usually lasted for a minimum of seven years and covered a defined geographic area or service type; by design, franchises were not awarded on an exclusive basis, and day-to-day competition with other franchises and open access operators was possible, albeit occurring on a limited number of services.[2] Over the years, the system evolved, most notably reducing the initial 25 franchises to 17 through a series of mergers. Seven franchises are currently in public ownership under the operator of last resort arrangement.
The Government initially suspended rail franchising in order to maintain service as passenger demand fell due to the COVID-19 pandemic, but on 21 September 2020 permanently abolished the rail franchising policy. Emergency arrangements (which effectively convert the franchises into concessions) remain until it legislates for a replacement to the system, likely to be a permanent concession system as is already in place in some urban areas.[3][4]
The system only covers the railways of Great Britain (including the Isle of Wight); the railways in Northern Ireland are owned and operated by the state-owned company NI Railways.
- ^ European Conference of Ministers of Transport (2007). Competitive Tendering of Rail Services. Paris: Organisation for Economic Co-operation and Development. pp. 9–10. ISBN 9789282101636. Retrieved 5 March 2015.
- ^ "CMA to examine scope for greater rail competition for passengers – News stories – GOV.UK". www.gov.uk. Retrieved 2 February 2016.
- ^ "Rail franchises axed as help for train firms grows". BBC News. 21 September 2020. Retrieved 21 September 2020.
- ^ Kollewe, Julia; Topham, Gwyn (21 September 2020). "UK ends rail franchising as Covid measures extended". The Guardian. ISSN 0261-3077. Retrieved 21 September 2020.