Transport Secretary Heidi Alexander says the government will consider whether to make all new trains taxpayer owned after private leasing firms rake in billions of pounds
Transport Secretary Heidi Alexander says the days of private firms owning all trains on UK railways could be numbered (Image: PA)
Transport Secretary Heidi Alexander has suggested trains on Britain’s railways should be publicly owned.
While rail operators are gradually being returned to state ownership as their franchises expire, the carriages and engines remain in private hands. Rolling stock companies – also known as RoSCos – were created by the Conservatives’ controversial privatisation of British Rail in the 1990s.
They own the coaches, locomotives and freight wagons used on the railways, which they lease to operators. Analysis from 2024 showed that more than a fifth of everything operators had spent since 2017 – upwards of £22billion – had gone to those leasing companies.
It comes after Ms Alexander confirmed that Avanti West Coast services will be nationalised from March next year. Train drivers union Aslef last month said that the country should own all new rolling stock, after the country’s biggest operator announced huge profits.
Newly released accounts for Angel Trains Ltd showed it made a profit of £50million in 2025. Angel Trains forms part of a wider group that made £115.8m in the year to last June, and dished out £111m in dividends. Ms Alexander has told Labour’s conference in Liverpool that it would explore whether the state should own all trains after the setting up of Great British Railways next year.
“For nearly three decades, most passenger trains haven’t been owned by the train operators themselves but by rolling stock companies,” she said. “They bought the trains, then leased them back to the operators. The train operators saved money upfront but it also brought long term significant cost.”
She added that operators handed over £4billion to RoSCos in 2024 alone, about a third of the cost running rail services. “As we set up Great British Railways, we will explore whether the state can directly own the new trains on order,” she added.
Dave Calfe, general secretary of Aslef, the train drivers’ union, said: “She was crystal clear that public ownership is now a real option for new rolling stock. This is a big step forward for our railway. Because, at the moment, the train operators lease their trains at huge expense from foreign-owned rolling stock companies.
“Billions of pounds hemorrhage from the network in profits and dividends which could – and should – be invested in the railway and help keep fares for passengers down.”
He added: “We know the best way is by buying our own trains, not by leasing them. Steve Rotheram has proved that on Merseyrail. That’s why we welcome Heidi’s announcement – doing the right thing for Britain’s railways.”
Cat Hobbs, director at public ownership campaign group We Own It, said: “It’s absolutely fantastic news that the government is now making it possible to take back our trains. Other countries own their own trains and we should do the same. This is a super smart decision for the long term future of the railway.
“Privatised rolling stock is an unbelievable rip off – ownership of the trains is the most profitable part of the railway. We need to own these assets directly so that passengers can benefit with money going in instead of leaking out.
“Rolling stock ownership is key to making public ownership of our railway successful. The government recognises that rail privatisation has failed and it’s excellent to see failing Avanti West Coast being set to come into public hands.
“The government now has a historic chance to set up our railway for success by updating the Railways Bill. This legislation currently in the House of Lords must make it easy for all trains to be owned by the public.”
