Report suggests railways could be ‘nationalised’ due to impact of COVID-19

The UK’s railways could “effectively” be nationalised to combat the deleterious effect the coronavirus outbreak is having on the sector, according to a report in The Telegraph.

Britain’s rail franchises have reportedly suffered a major downturn in ticket sales and passenger numbers over the last few days, with major franchises looking to the government for a potential bail-out.

The Rail Delivery Group, the rail industry membership body owned by Network Rail, HS2 Ltd and a host of passenger and freight operators, is currently in talks with the Department for Transport over the best way to proceed.

According to the report, key industry figures have suggested that private rail contracts could be “ripped up and replaced [with] fixed fee alternatives,” which The Telegraph says would mean taxpayers footing the bill for the country’s rail network.

East Midlands Railway declined to comment when approached by TheBusinessDesk.com.

The news follows a number of reports earlier today (16 March) which suggested certain lines could be shut due to a dramatic decline in passenger numbers.

Grant Shapps, the Transport Secretary, told the BBC that there was “no point running ghost trains any more than running ghost planes.”