Great British Railways to weigh public ownership against leasing for future trains
A new UK rail strategy makes buying trains directly an option for future orders, but leaves each decision to a value test. It establishes no route-level purchase or fare saving.
Great British Railways will assess whether to buy, lease or otherwise finance future trains under a UK government strategy published on 28 September 2026. The change means leasing will no longer be the default for new orders, but it does not identify a train purchase for any route or establish that passengers will pay lower fares.
The Department for Transport says direct public ownership could offer substantial savings in some circumstances. Its announcement sets out a test for future decisions, rather than a commitment to own every new train. Existing leasing contracts will remain in place.
How Great British Railways will choose who owns new trains
For more than three decades, most passenger trains have been owned by rolling stock companies and leased to operators, according to the Department for Transport. The new strategy asks Great British Railways to compare that arrangement with direct public ownership and other financing options for each future procurement, judging which offers the best value for taxpayers and fare payers.
Transport Secretary Heidi Alexander told the Labour conference that the state would explore owning the new trains it orders. As reported by The Guardian, she said: ‘If GBR owning trains would best serve taxpayers and passengers, then we should do it.’ That leaves the outcome dependent on a comparison for each order; the announcement does not name a fleet that Great British Railways has decided to buy outright.
The strategy also calls for decisions on trains, track, depots and maintenance to be planned together across the network. The government argues that coordinating those choices could improve reliability. That is a proposed benefit of the approach, rather than a measured improvement from a fleet bought under the new policy.
What the rail leasing figures show
The Office of Rail and Road recorded £4.1 billion in rolling stock leasing and maintenance costs for franchised passenger operators in the year from April 2024 to March 2025. Its breakdown identified £2.7 billion spent leasing from rolling stock companies and £1.5 billion on maintenance, offset by £61 million in other rolling stock income. The overall figure also includes some trains procured directly by the Department for Transport.
The regulator also reported £275 million in dividends paid by six rolling stock companies that year, down from £339 million the previous year. These figures describe spending and payments under the existing system. They do not show how much, if anything, a particular future public purchase would save after its costs were compared with a lease.
The Guardian reported that RMT general secretary Eddie Dempsey and Aslef general secretary Dave Calfe welcomed the proposal. Both criticised profits and dividends flowing out of the railway. Their support does not settle the value test that the government says will apply to individual train orders.
What passengers can expect on their routes
The Department for Transport proposes more standardised designs, described as ‘fleet families’, so trains can be used more flexibly across the network. It also says diesel trains will progressively give way to cleaner technology, with battery-powered trains playing a role alongside electrification. The announcement does not assign a future train order or ownership decision to a particular route.
There is likewise no route-level fare reduction in the strategy. The government says buying trains could save money in some circumstances, but the sources do not contain a quantified purchase-versus-lease comparison for a specific new fleet. Whether any eventual saving would affect fares remains unanswered.
How the Avanti West Coast transfer differs
In a separate announcement on 28 September, the government set 7 March 2027 for Avanti West Coast’s services to transfer to public operation when its contract expires. That changes who runs the service. It is not a decision to buy the trains used on the route, and the train strategy says existing leases remain in place.
The government says Avanti timetable amendments focused on Manchester routes are due to begin in December 2026. It also announced an additional £10 million for power and signalling maintenance, to be delivered by the end of 2027. Those are planned service and infrastructure measures, distinct from the new ownership test for future trains.
The Guardian reported that Avanti cancelled 7.1% of services from April to June 2026. Avanti managing director Andy Mellors told the newspaper that the company had refurbished its Pendolino fleet, introduced Evero trains and increased services. Passengers can assess the announced transfer and improvement plans separately from any later decision on whether Great British Railways should own a newly ordered fleet.
Sources and context
- Government explores buying trains over leasing in new rail strategyDepartment for Transport and DfT Operator Limited
- Avanti West Coast to be renationalised in March as ministers float public ownership of new trainsThe Guardian
- Rail industry finance (UK) – April 2024 to March 2025Office of Rail and Road
- Transport Secretary to nationalise Avanti West Coast services at first opportunityDepartment for Transport and DfT Operator Limited
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.
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