Privatisation of British Rail in the context of "Rail franchising in Great Britain"

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⭐ Core Definition: Privatisation of British Rail

The privatisation of British Rail was the process by which ownership and operation of the railways of Great Britain passed from government control into private hands. Begun in 1994, the process was largely completed by 1997. The deregulation of the industry was in part motivated by the enactment of EU Directive 91/440 in 1991, which aimed to create a more efficient railway network by creating greater competition.

British Railways (BR) had been in state ownership since 1948, under the control of the British Railways Board (BRB). Under the Conservative government of Margaret Thatcher elected in 1979, various state-owned businesses were gradually sold off, including various auxiliary and supporting functions related to the railways – Sealink ferries and British Transport Hotels by 1984, Travellers Fare catering by 1988 and British Rail Engineering Limited (train manufacturing) by 1989.

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👉 Privatisation of British Rail in the context of Rail franchising in Great Britain

Passenger rail franchising in Great Britain was the system of contracting the operation of the passenger services on the railways of Great Britain to private companies, which was in effect from 1996 before being greatly altered in 2020, and effectively abolished in May 2021. In 2024 rail franchising was formally abolished, with rail contracts set to enter government control at the expiration of their contracts from 2025 onwards.

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. 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. Over the years, the system evolved, most notably reducing the initial 25 franchises to 17 through a series of mergers. As of October 2025, ten franchises are in public ownership under the DfT Operator with five more to follow in 2026, as more passenger services are gradually renationalised.

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Privatisation of British Rail in the context of Railways of Great Britain

The railway system in Great Britain is the oldest railway system in the world. The first locomotive-hauled public railway opened in 1825, which was followed by an era of rapid expansion. Most of the track is managed by Network Rail, which in 2024 had a network of 9,848 miles (15,849 km) of standard-gauge lines, of which 3,810 miles (6,130 km) were electrified. In addition, some cities have separate metro, light rail and tram systems, among them the historic London Underground and the Glasgow Subway. There are also many private railways, some of them narrow-gauge, which are primarily short lines for tourists. The main rail network is connected with that of continental Europe by the Channel Tunnel and High Speed 1, opened in 1994 and 2007 respectively.

In 2024, there were 1.612 billion journeys on the National Rail network, making the British network the fifth most used in the world (Great Britain ranks 23rd in world population). Unlike a number of other countries, rail travel in the United Kingdom has enjoyed a renaissance in recent years, with passenger numbers approaching their highest ever level (see usage figures below). This has coincided with the privatisation of British Rail, but the cause of this increase is unclear. The growth is partly attributed to a shift away from private motoring due to growing road congestion and increasing petrol prices, but also to the overall increase in travel due to affluence. Passenger journeys in Britain grew by 88% over the period 1997–98 to 2014 as compared to 62% in Germany, 41% in France and 16% in Spain.

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Privatisation of British Rail in the context of British Rail Class 158

The British Rail Class 158 Express Sprinter is a diesel multiple unit (DMU) passenger train. It is a member of the Sprinter series of regional trains, produced as a replacement for British Rail's first generation of DMUs; of the other members, the Class 159 is almost identical to the Class 158, having been converted from Class 158 to Class 159 in two batches to operate express services from London Waterloo to the West of England.

The Class 158 was constructed between 1989 and 1992 by British Rail Engineering Limited (BREL) at its Derby Litchurch Lane Works. The majority were built as two-car sets; some three-car sets were also produced. During September 1990, the first Express Sprinters were operated by ScotRail; the type was promptly introduced to secondary routes across the Midlands, Northern England, Wales and the South West. The Class 158 enabled the replacement of large numbers of elderly DMUs but also several locomotive-hauled trains as well; this was partially accomplished via the cascading of existing Sprinter units onto other routes. To capitalise on the Class 158's improved onboard amenities in comparison to other rolling stock in use for regional services, the Alphaline branding was launched during the mid-1990s; it was also used for a time in the post-privatisation era.

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Privatisation of British Rail in the context of Train operating companies

In the railway system of Great Britain, a train operating company (TOC) is a railway undertaking operating passenger trains under the collective National Rail brand. TOCs have existed since the privatisation of the network under the Railways Act 1993.

There are two types of TOC: most hold franchises let by the Department for Transport (DfT) through a tendering system, to operate services on certain routes for a specified duration, while a small number of open-access operators hold licences to provide supplementary services on chosen routes. These operators can run services for the duration of the licence validity. The franchised operators have changed considerably since privatisation: previous franchises have been divided, merged, re-let to new operators, or renamed. Some privately operated franchises have been taken over by a government-owned operator of last resort, due to failing expectations, or events on the rail system as a whole, or since 2024 the government's intention to bring passenger rail services into public ownership. As of July 2025, all Welsh and Scottish TOCs, and six English TOCs are government-owned.

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Privatisation of British Rail in the context of National Rail

National Rail (NR) is the trading name licensed for use by the Rail Delivery Group, a group representing passenger train operating companies (TOCs) of England, Scotland, and Wales.

The British Railways Board ran passenger services using the brand name British Rail from 1965 until 1997, when it was privatised and services were transferred to private train operating companies. (Northern Ireland, which is bordered by the Republic of Ireland, has a different system.)

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Privatisation of British Rail in the context of Impact of the privatisation of British Rail

The impact of the privatisation of British Rail has been the subject of much debate, with the stated benefits including improved customer service, and more investment; and stated drawbacks including higher fares, lower punctuality and increased rail subsidies. The privatisation of British Rail began in the 1990s.

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