View source for Privatisation of British Rail

{{short description|Transfer of ownership and operation of British railways from government to private sector}}
{{No footnotes|date=March 2024}}
{{EngvarB|date=February 2018}}
{{Use dmy dates|date=August 2017}}

The '''privatisation of British Rail''' was the process by which ownership and operation of the [[Rail transport in Great Britain|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.<ref>{{cite journal |last1 = Holvad |first1 = Torben |title = Review of Railway Policy Reforms in Europe |journal=Built Environment |date = 2009 |volume = 35 |issue = 1 |pages = 24–42 |doi = 10.2148/benv.35.1.24 |jstor = 23289642 |url=https://www.jstor.org/stable/23289642 |access-date = 5 November 2020 |issn = 0263-7960|url-access = subscription }}</ref>

[[British Rail]]ways (BR) had been in state ownership since 1948, under the control of the [[British Railways Board]] (BRB). Under the [[Conservative Party (UK)|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.

It was under Thatcher's successor [[John Major]] that the railways themselves were privatised. Under the [[Railways Act 1993]], the operations of the BRB were broken up and sold off to various parties while various regulatory functions transferred to the newly created office of the [[Rail Regulator]]. Ownership of the infrastructure, including the larger stations, passed to the new privately owned company [[Railtrack]], while track maintenance and renewal assets were sold to 13 companies across the network. Ownership of the passenger trains themselves passed to three [[Rolling stock company|rolling stock companies]] (ROSCOs) – the stock being leased out to passenger [[Train operating company|train operating companies]] (TOCs) awarded contracts through a new [[Rail franchising in Great Britain|system of rail franchising]] overseen by the [[Office of Passenger Rail Franchising]] (OPRAF). Ownership and operation of [[rail freight in Great Britain]] passed to two companies – [[DB Cargo UK|English Welsh & Scottish]] (EWS) and [[Freightliner Group|Freightliner]], less than the originally intended six, although numerous new entrants in the sector have since appeared.

The privatisation of the railways was very controversial at the time, and still is, and the [[Impact of the privatisation of British Rail|impact of this policy]] is hotly debated. Despite opposition from the [[Labour Party (UK)|Labour Party]], who [[Premiership of Tony Blair|gained power in 1997 under Tony Blair]], the process has never been reversed wholesale by any later government, and the system has remained largely unaltered. During the late 2010s, it was announced that a transition towards [[Great British Railways]], a contract-based model to replace the franchise system, would be undertaken. A significant change came in 2001 with the collapse of [[Railtrack]], which saw its assets passed to the state-owned [[Network Rail]] (NR), while track maintenance was also brought in-house under NR in 2004. The regulatory structures have also been amended subsequently.

==Background==
{{Main|History of rail transport in Great Britain 1948–1994}}
[[File:UK Rail journeys per capita.png|thumb|UK rail journeys per capita from 1840 to 2018,<ref>ATOC's 2008 publication Billion Passenger Railway</ref><ref>{{Cite web |url = https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/timeseries/ukpop/pop |title = United Kingdom population mid-year estimate |publisher = Office for National Statistics}}</ref> showing a steady decline in the decades leading up to privatisation]]

===To 1979===
Historically, the pre-[[nationalisation]] railway companies were almost entirely self-sufficient, including, for example, the production of the steel used in the manufacturing of rolling stock and rails. As a consequence of the nationalisation of the railways in 1948 some of these activities had been hived off to other nationalised industries and institutions, e.g. "Railway Air Services Limited" was one of the forerunners of [[British Airways]]; the railways' road transport services, which had carried freight, parcels and passengers' luggage to and from railheads, ultimately became part of the [[National Freight Corporation]], but this transfer did not occur until 1969.<ref>{{cite magazine |url = http://archive.commercialmotor.com/article/3rd-january-1969/26/national-freight-corporation |title = National Freight Corporation |magazine = [[Commercial Motor]] |date = 3 January 1969 |page = 3}}</ref><ref>{{cite magazine |url = http://archive.commercialmotor.com/article/7th-march-1969/46/now-the-national-freight-federation |title = Now the National Freight Federation |magazine = Commercial Motor |date = 7 March 1969 |page = 46}}</ref>

[[File:1586 at London Victoria.jpg|thumb|right|A 1950s Mk1-based [[British Rail Class 411|Class 411]] (4-CEP) "slam-door" EMU at [[London Victoria station]], in [[Network SouthEast]] livery (March 2003)]]

The preferred organisational structure in the 1970s was for the BRB to form wholly owned subsidiaries which were run at an arm's-length relationship, e.g. the railway engineering works became [[British Rail Engineering Limited]] (BREL) in 1970; the ferry operations to [[Ireland]], [[France]], [[Belgium]] and the [[Netherlands]] were run by [[Sealink]], part of the Sealink consortium, which also used ferries owned by the French national railway [[SNCF]], the Belgian Maritime Transport Authority Regie voor maritiem transport/Regie des transports maritimes (RMT/RTM), and the Dutch Zeeland Steamship Company.<ref>{{cite magazine |title = British Rail Engineering Limited formed |magazine = [[Railway Gazette International|Railway Gazette]] |date = 5 December 1969 |page = 882}}</ref><ref>{{cite magazine |title = Sealink title for BR and alliped shipping services |magazine = [[Railway Gazette International|Railway Gazette]] |date = 21 November 1969 |page = 843}}</ref> However, the BRB was still directly responsible for a multitude of other functions, such as the [[British Transport Police]], the British Rail Property Board (which was responsible not just for operational track and property, but also for thousands of miles of abandoned tracks and stations arising from the [[Beeching cuts]] and other closure programmes), a staff savings bank, convalescent homes for rail staff, and the internal railway telephone and data comms networks (the largest in the country after [[BT Group|British Telecom's]]), etc.<ref>{{cite web |url = http://www.ndad.nationalarchives.gov.uk/AH/37/detail.html |title = Department details ― British Railways Board |url-status = dead |archive-url = http://webarchive.nationalarchives.gov.uk/20101021084634/http://www.ndad.nationalarchives.gov.uk/AH/37/detail.html |archive-date = 21 October 2010 |publisher = [[The National Archives (United Kingdom)|The National Archives]] |website = National Digital Archive of Datasets |access-date = 16 October 2008 }}</ref>

By 1979, the organisational structure of the BRB's railway operations still largely reflected that of the [[Big Four British railway companies]], which had been merged to create British Railways over 30 years previously. There were five Regions (Scotland being a separate region), each region being formed of several Divisions, and each division of several Areas. There was some duplication of resources in this structure, and in the early 1980s, the divisional layer of management was abolished with its work being redistributed either upwards to the regions or downwards to the areas.

===1980s===
The chain of [[British Transport Hotels]] was sold off, mainly one hotel at a time, during 1982. Two years later, [[Sealink]] was sold to [[Sea Containers]], who ultimately sold the routes to their current owner, [[Stena Line]].<ref>{{cite magazine |title = Intelligence |magazine = [[Railway Gazette International]] |issue = September 1984 |page = 662}}</ref> In 1988, catering business [[Travellers Fare]] was divested via a [[private equity]]-backed [[management buyout]].<ref>{{cite magazine |title = Travellers Fare sold |magazine = [[The Railway Magazine]] |issue = 1055 |date = March 1989 |page = 144}}</ref> That same year, [[British Rail Engineering Limited]] was split between the major engineering works, which became BREL (1988) Ltd and the (mostly smaller) works that were used for day-to-day maintenance of rolling stock, which became British Rail Maintenance Limited.<ref>{{cite magazine |title = BREL divided |magazine = [[The Railway Magazine]] |issue = 1034 |date = June 1987 |page = 390}}</ref> BREL (1988) Ltd was sold to a consortium of [[ABB Group|ASEA Brown-Boveri]] and [[Trafalgar House (company)|Trafalgar House]] in 1989.<ref>{{cite magazine |title = Buyer for BREL |magazine = [[The Railway Magazine]] |issue = 1055 |date = March 1989 |page = 143}}</ref><ref>{{cite magazine |title = In Brief |magazine = [[Railway Gazette International]] |issue = May 1989 |page = 287}}</ref> In 1992, ABB Transportation took full ownership before the unit was merging with [[Daimler-Benz]]'s train manufacturing interests to form [[Adtranz]] in January 1996.<ref>{{cite magazine |title = ABB to control BREL |magazine = [[The Railway Magazine]] |issue = 1093 |date = May 1992 |page = 7}}</ref> Daimler-Benz subsequently took 100% ownership of Adtranz in 1998 before selling it to [[Bombardier Transportation|Bombardier]] in May 2001.<ref>{{cite magazine |title = ABB bought out |magazine = [[Rail Magazine]] | issue=350 |date=10 February 1999| page=12}}</ref><ref>{{cite magazine |title = Bombardier acquires Adtranz for £483m |magazine = [[Rail Magazine]] |issue = 390 |date = 23 August 2000 |page = 7}}</ref><ref>{{cite magazine |title = For Adtranz read Bombardier |magazine = [[The Railway Magazine]] |issue = 1203 |date = July 2001 |page = 10}}</ref>

For reasons of efficiency and to reduce the amount of subsidy required from the government, British Rail undertook a comprehensive organisational restructuring in the late 1980s. The new management structure was based on business sectors rather than geographical regions, and first manifested itself in 1982 with the creation of [[Railfreight]], the BRB's freight operation, and [[InterCity (British Rail)|InterCity]], though the Inter-City branding had been carried on coaching stock since the early 1970s.<ref name="Sutton">{{cite magazine |last = Sutton |first = Philip |date = 2007 |title = Railfreight: The Making of a Design Classic |magazine = Rail Express |issue = 137 |pages = 20–27 |issn = 1362-234X}}</ref><ref>{{cite news |url = http://www.railstaff.uk/2013/12/19/the-fall-and-rise-of-britains-railways-3/ |title = The fall and rise of Britain's railways |work = [[Railnews|Rail Staff News]] |date = 19 December 2013 |access-date = 11 November 2016}}</ref> Commuter services in the south-east came under the London & South East sector, which would become [[Network SouthEast]] in 1986.<ref>{{Cite book |last = Lawrence |first = Mark |title = Network SouthEast - From Sectorization to Privatisation |date = 16 May 1994 |publisher = OPC Rail Print |isbn = 9780860934943}} {{Page needed|date=May 2023}}</ref> Services in Scotland were operated by [[ScotRail (British Rail)|ScotRail]], while Provincial sector handled local and rural routes.<ref>{{cite book |last1 = Stewart |first1 = Valerie  |last2 = Chadwick |first2 = Vivian |name-list-style = amp |title = Changing Trains: messages for management from the ScotRail challenge |location = Newton Abbot |publisher = David & Charles |year = 1987 |isbn = 0-7153-8870-3}} {{Page needed|date=May 2023}}</ref> The regional management structure continued in parallel for a few years before it was abolished. Sectorisation was generally regarded within the industry as a great success, and it was to have a considerable effect on the way in which privatisation would be carried out.

[[File:59001 'Yeoman Endeavour' at Doncaster Works.JPG|thumb|right|[[British Rail Class 59|59001]] in revised [[Foster Yeoman]] livery. Private ownership of locomotives marked the start of a new era in railfreight haulage.]]<!-- could do with a good picture in original livery to be more accurate -->

During 1985, what may in retrospect be viewed as the harbinger of private rail operation occurred when the quarry company [[Foster Yeoman]] bought a small number of extremely powerful 3600&nbsp;hp locomotives from [[General Motors]]' [[Electro-Motive Diesel]] division (GM-EMD), designated [[British Rail Class 59|Class 59]], to operate mineral trains from their quarry in [[Wiltshire]].<ref>{{cite book |last1 = Allen |first1 = Geoffrey Freeman |title = The Yeoman 59s |date = 1987 |publisher = Jane's Transport Press |location = London |isbn = 0-7106-0452-1 |pages = 5–9}}</ref><ref>{{cite magazine|last1 = Marsden |first1 = Colin J. |magazine = Modern Locomotives Illustrated |date = October–November 2008 |issue = 173 |edition = |title = The Class 59s |issn = 1756-8188 |publisher = Key Publishing |location = Stamford |pages = 7–9}}</ref> Although owned and maintained by Foster Yeoman, the Class 59s were manned by British Rail staff. During acceptance trials, on 16 February 1986, locomotive 59001 hauled a train weighing 4639 [[tonne]]s – the heaviest load ever hauled by a single non-articulated traction unit. Foster Yeoman's Class 59s proved to be extremely reliable, and it was not long before quarry company ARC and privatised power generator [[National Power]] also bought small numbers of Class 59s to haul their own trains.<ref>{{cite web |title = The Track Record of Heavy Haul Power EMD General Motors Locomotives over Ten Years |url = http://www.hhpi.org/track_record.htm |publisher = Heavy Haul Power International |access-date = 10 February 2023 |archive-url = https://web.archive.org/web/20071008091653/http://www.hhpi.org/track_record.htm |archive-date = 8 October 2007 |location = Erfurt}}</ref><ref name="RSR19">{{cite book |last1 = Marsden |first1 = Colin J. |title = Rolling Stock Review |date = 2019 |publisher = Key Publishing |location = Stamford |isbn = 978-1-91220-598-1 |pages = 30–31}}</ref>

During 1986, discussions were held with Sea Containers that touched on the business possibilities for the break up of British Rail, particularly on the possible takeover of the railway on the [[Isle of Wight]] by the company. However, the discussions proved abortive.{{CN|date=December 2023}}

In Sweden, the [[Swedish State Railways]] was split into two in 1988, creating the [[Swedish Rail Administration]] to control the rail infrastructure, and [[SJ AB|SJ]] to operate the trains.<ref name = "global SJmarket2005">{{cite web |url = https://www.globalrailwayreview.com/article/2667/sj-prepares-to-defend-its-market-share/ |title = SJ prepares to defend its market share |publisher = globalrailwayreview.com |date = 23 August 2005}}</ref> This restructuring was the first time that a national railway had been divided up in this manner; one of the advantages of this arrangement was that it allowed for local county authorities to [[Invitation to tender|tender]] the provision of local passenger services to the new train operators that appeared.<ref name = "global SJmarket2005"/> The Swedish system appeared to be very successful initially, although some train operators subsequently went [[bankrupt]]. The Swedish experiment was watched with great interest in various other countries during the 1980s and 1990s.

The narrow gauge [[Vale of Rheidol Railway]] in [[Aberystwyth]], Mid Wales was unique in Britain, being the only steam railway to be operated by British Rail.<ref>{{cite book |title = The Vale of Rheidol Light Railway |last = Green |first = C.C. |publisher = Wild Swan |year = 1986 |isbn = 0-906867-43-6 |page = 29}}</ref> During 1988, the [[Department of Transport]] started the process of privatising the line. Later that year, it was announced the line had been purchased by the owners of [[Brecon Mountain Railway]], becoming the first part of British Rail to be privatised.<ref>{{cite journal |last = Boyd-Hope |first = Gary |title = Rheidol revival: 20 years of private enterprise |journal = Steam Railway |volume = 358 |date = January 2009 |pages = 91–95}}</ref>

===1990s===
During 1991, following the partly-successful Swedish example and wishing to create an environment where new rail operators could enter the market, the [[European Union]] issued [[EU Directive 91/440]].<ref>{{cite web |url = http://ec.europa.eu/transport/rail/overview/dir_91_440_en.htm |title = Rail Transport and Interoperability (overview of directive 91/440) |access-date = 6 July 2007 |publisher = European Union |archive-url = https://web.archive.org/web/20070618124209/http://ec.europa.eu/transport/rail/overview/dir_91_440_en.htm |archive-date = 18 June 2007 |url-status = dead |df = dmy-all}}</ref> This required of all EU member states to separate "the management of railway operation and infrastructure from the provision of railway transport services, separation of accounts being compulsory and organisational or institutional separation being optional", the idea being that the track operator would charge the train operator a transparent fee to run its trains over the network, and anyone else could also run trains under the same conditions (open access).

{{John Major sidebar}}
In Britain, [[Margaret Thatcher]] was [[1990 Conservative Party leadership election|forced out]] as leader of the [[Conservative Party (UK)|Conservative Party]] and succeeded by [[John Major]] at the end of 1990. The Thatcher administration had already sold off nearly all the former state-owned industries, apart from the national rail network. Although the previous [[Secretary of State for Transport|Transport Secretary]] [[Cecil Parkinson]] had advocated some form of privately or semi-privately operated rail network, this was deemed "a privatisation too far" by Thatcher herself.<ref>{{cite web |url = http://railpro.co.uk/issues/pdfs/oct05master.pdf|title=Anyone seen the invisible hand? |access-date = 6 July 2007 |last = Coleman |first = Paul |date = October 2005 |work = Rail Professional |publisher = Rail Professional Ltd |pages = 14–15 |url-status = dead |archive-url = https://web.archive.org/web/20081120193049/http://www.railpro.co.uk/issues/pdfs/oct05master.pdf |archive-date = 20 November 2008 |df = dmy-all}}</ref> In its manifesto for the [[1992 United Kingdom general election|1992 general election]] the Conservatives included a commitment to privatise the railways, but were not specific about how this objective was to be achieved.<ref>{{cite web |url = http://www.conservativemanifesto.com/1992/1992-conservative-manifesto.shtml |title = The Best Future for Britain: 1992 Conservative Party General Election Manifesto |access-date = 6 July 2007 |year = 1992 |publisher = Conservative Party }}</ref> The manifesto claimed that "The best way to produce profound and lasting improvements on the railways is to end BR's state monopoly," although according to ''[[The Independent]]'', "many – including within the Tory party – believed that privatisation was merely a mechanism to manage the industry's gradual decline without too heavy a burden on the taxpayer."<ref>{{Cite web |title = Britain's railways are doing well despite privatisation |url = https://www.independent.co.uk/news/uk/home-news/britains-railways-doing-well-despite-privatisation-a6843966.html |website = The Independent |date = 30 January 2016 |access-date = 31 January 2016 |language = en-GB}}</ref>

Contrary to opinion polls, the Conservatives won the election in April 1992 and consequently had to develop a plan to carry out the privatisation before the Railways Bill was published the next year. The management of British Rail strongly advocated privatisation as one entity, a British Rail [[Public limited company|plc]] in effect; Cabinet Minister [[John Redwood]] "argued for regional companies in charge of track and trains" but Prime Minister John Major did not back his view;<ref>{{cite web |url = http://www.johnredwoodsdiary.com/2011/06/29/the-train-cannot-always-take-the-strain/#comments/ |title = The train cannot always take the strain |work = johnredwoodsdiary.com |date = 29 June 2011}}</ref> the Treasury, under the influence of the [[Adam Smith Institute]] [[think tank]] advocated the creation of seven, later 25, passenger railway franchises as a way of maximising revenue. In this instance, it was the Treasury view that prevailed.

==Legislation==
{{Main|Railways Act 1993}}
As a precursor to the main legislation, the British Coal and British Rail (Transfer Proposals) Act 1993 was passed on 19 January 1993. This legislation gave the [[Secretary of State (United Kingdom)|Secretary of State]] the power to issue directions to the BRB to sell assets, something which the board was unable to do until then.

The Railways Bill, published in 1993,<ref>{{cite web |url = http://www.railwaysarchive.co.uk/docSummary.php?docID=12 |title = Railways Act 1993 |author = Her Majesty's Government |year = 1903 |work = The Railways Archive |publisher = (originally published by Her Majesty's Stationery Office) |access-date = 26 November 2006}}</ref> established a complex structure for the rail industry. British Rail was to be broken up into over 100 separate companies, with most relationships between the successor companies established by contracts, some through regulatory mechanisms (such as the industry-wide network code and the multi-bilateral star model performance regime). Contracts for the use of railway facilities – track, stations and light maintenance depots – must be approved or directed by the [[Office of Rail & Road]], although some facilities are exempt from this requirement. Contracts between the principal passenger train operators and the state are called franchise agreements, and were first established with the [[Office of Passenger Rail Franchising]] (OPRAF), then its successor the [[Strategic Rail Authority]] and now with the [[Secretary of State for Transport]].

The passage of the Railways Bill was controversial. The public was largely unconvinced of the virtues of rail privatisation and there was much lobbying against the Bill. The [[Labour Party (UK)|Labour Party]] was implacably opposed to it and promised to renationalise the railways when they got back into office as and when resources allowed. The Conservative chairman of the [[British House of Commons|House of Commons]] Transport Committee, [[Robert Adley]] famously described the Bill as "a [[Tax per head|poll tax]] on wheels";<ref name=railtrack>{{cite news |url = https://news.bbc.co.uk/2/hi/programmes/world_at_one/1598592.stm |title = After Railtrack, what next for PPP? |access-date = 15 April 2009 |date = 14 October 2001 |work = [[BBC News]]}}</ref> however Adley was known to be a [[Railfan|rail enthusiast]] and his advice was discounted. Adley died suddenly before the Bill completed its passage through Parliament.<ref name=AdleyObituary>{{cite news |title = Robert Adley; Obituary |newspaper = [[The Times]] |date = 14 May 1993}}</ref>

The Railways Bill became the [[Railways Act 1993]] on 5 November 1993, and the organisational structure dictated by it came into effect on 1 April 1994. Initially, British Rail was broken up into various units frequently based on its own organisational sectors (Train Operating Units, Infrastructure Maintenance Units, etc. - for more details see below) still controlled by the British Railways Board, but which were sold over the next few years.

==Domestic system==
===As implemented===
The original privatisation structure, created over the three years from 1 April 1994, consisted of passing ownership and operation of the railway to a variety of private companies, regulated by two public offices, [[Rail Regulator]] and [[Director of Passenger Rail Franchising]]. A newly created company, [[Railtrack]], would be the privately owned infrastructure owner, which would [[subcontract]] work to various other companies to perform maintenance.<ref name = "parliament summary2010"/> Various other companies would lease and/or operate trains.<ref>{{cite journal |url = https://www.socresonline.org.uk/7/1/strangleman.html |first = Tim |last = Strangleman |date = 2002 |title = Nostalgia for Nationalisation – the Politics of Privatisation |journal = Sociological Research Online |volume = 7 |number = 1 |pages = 92–105 |doi = 10.5153/sro.701 |s2cid = 144684740 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205024644/https://www.socresonline.org.uk/7/1/strangleman.html |url-status = live }}</ref><ref name = "trainselloff bbc2000">{{cite news |url = https://news.bbc.co.uk/2/hi/uk_news/politics/982037.stm |title = The great train sell-off: Who dunnit? |work = BBC News |date = 20 October 2000 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205033050/http://news.bbc.co.uk/1/hi/uk_politics/982037.stm |url-status = live }}</ref>

In preparation for full privatisation, BR was split up into various parts. Provision of passenger services was split up into twenty-five passenger train operating units (TOUs),<ref>{{cite web |publisher = [[House of Commons Library]] |url =  http://researchbriefings.files.parliament.uk/documents/SN01157/SN01157.pdf |title = Railways: privatisation, 1987-1996 |date = 18 March 2010 |first = Louise |last = Butcher}}</ref> known as shadow franchises, split by geographical area and service type. For freight services, six [[rail freight in Great Britain|freight operating companies]] (FOCs) were created - three geographical units for trainload freight ([[Mainline Freight]] in the south-east, [[Loadhaul]] in the north-east and [[Transrail Freight|Transrail]] in the west<ref>{{Cite magazine |title = The crash that began Railtrack's demise |url = https://www.railmagazine.com/trains/specifications/the-crash-that-began-railtrack-s-demise |date = 2 March 2016 |magazine = [[Rail Magazine]]|first = Paul |last = Stephen}}</ref>), plus [[Railfreight Distribution]] for international and wagonload trains, [[Freightliner Group|Freightliner]] for container-carrying trains, and [[Rail Express Systems]] for parcels and mail trains. British Rail Infrastructure Services (BRIS) took responsibility for the engineering requirements of the railway.<ref>{{cite magazine |title = New identities for freight companies |magazine = [[Rail Magazine]] |issue = 221 |date = 2 March 1994 |page = 13}}</ref> BRIS was subsequently organised for privatisation on the basis of seven infrastructure maintenance units (IMUs), which maintained the railway, and six track renewal units (TRUs), which replaced rail lines, both organised geographically.

Railtrack was the first company created; it took over ownership of all track, signalling and stations.<ref name = "parliament summary2010">{{cite web |url = https://researchbriefings.files.parliament.uk/documents/SN01224/SN01224.pdf |title = Railways: Railtrack, 1994–2002 |date = 24 March 2010 |website = parliament.uk |first = Louise |last = Butcher |access-date = 5 December 2022 |archive-date = 19 December 2022 |archive-url = https://web.archive.org/web/20221219194843/https://researchbriefings.files.parliament.uk/documents/SN01224/SN01224.pdf |url-status = live }}</ref><ref name = "sciencemuseum summary">{{cite web |url = https://collection.sciencemuseumgroup.org.uk/people/ap268/railtrack-group-plc |title = Railtrack Group PLC |website = sciencemuseumgroup.org.uk |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205022745/https://collection.sciencemuseumgroup.org.uk/people/ap268/railtrack-group-plc |url-status = live }}</ref> Railtrack proceeded to let out most of the 2,509 stations to the franchised passenger train operators, managing only a handful (twelve, later seventeen) of the largest city termini itself. Since maintenance and renewal of the infrastructure was to be sub-contracted (to the private purchasers of the IMUs and TRUs), Railtrack's directly employed staff consisted mostly of signallers.<ref>{{cite news |url = https://www.independent.co.uk/news/uk/the-rail-dispute-railtrack-chief-gives-no-surrender-message-horton-in-uncompromising-mood-as-union-clashes-with-br-over-the-number-of-trains-running-1447605.html |title = The Rail Dispute: Railtrack chief gives 'no surrender' message: Horton in uncompromising mood as union clashes with BR over the number of trains running |newspaper = The Independent |first = Barrie |last = Clement |date = 8 September 1994 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205012907/https://www.independent.co.uk/news/uk/the-rail-dispute-railtrack-chief-gives-no-surrender-message-horton-in-uncompromising-mood-as-union-clashes-with-br-over-the-number-of-trains-running-1447605.html |url-status = live }}</ref> Railtrack sourced its revenue from track access charges levied on train operators as well as [[lease]]s of [[railway station|station]]s and [[Motive power depot|depot]]s; additional funding would come from the British government. The company would spend its finances mostly on the railway network in accordance with plans laid out by the rail regulator.<ref name = "wolmar 2005">{{cite web |last = Christian |first = Wolmar |work = [[The Guardian]] |date = 16 July 2005 |url = http://www.theguardian.com/politics/2005/jul/16/publicservices.uk |title = Forget Byers: the scandal was in the original sell-off: Railtrack was heading for disaster long before the Hatfield crash |access-date = 12 December 2016 |archive-date = 29 August 2013 |archive-url = https://web.archive.org/web/20130829063606/http://www.theguardian.com/politics/2005/jul/16/publicservices.uk |url-status = live }}</ref><ref name = "parliament summary2010"/>

Three newly created [[rolling stock company|rolling stock leasing companies]] (ROSCOs) ([[Angel Trains]], [[Eversholt Rail Group]] and [[Porterbrook]]) were allocated all British Rail's passenger coaches, locomotives, and multiple units.<ref>{{cite web |publisher = House of Commons Library |url = http://researchbriefings.files.parliament.uk/documents/SN03146/SN03146.pdf |title = Railway rolling stock (trains) |first = Louise |last = Butcher |date = 15 June 2017}}</ref><ref>{{cite magazine |title = ROSCOs sold for £1,699.5m |magazine = [[Rail Business Intelligence|Rail Privatisation News]] |issue = 18 |date = 16 November 1995 |page = 16}}</ref><ref>{{cite magazine |title= BR's passenger trains fleet sold-off for £1.8 billion | magazine = [[Rail Magazine]] |issue=266 |date=22 November 1995|page=6}}</ref> Completion of the privatisation process involved converting the passenger TOUs to [[Train operating company|train operating companies]] (TOCs) through the process of franchising, performed in the first instance on a "lowest-cost bidder wins" basis. Freight locomotives and wagons were not passed to ROSCOs, instead being owned directly by the freight train operators. Full privatisation of the freight operators saw five being bought immediately by a consortium led by the [[Wisconsin Central Ltd.|Wisconsin Central Transportation Corporation]] and merged into what became known as the [[DB Cargo UK|English Welsh & Scottish]] (EWS) (now [[DB Cargo UK]]),<ref name=Rail274>{{cite magazine |title = BR freight is finally sold to Burkhardt |magazine = [[Rail Magazine]] |issue = 274 |date = 13 March 1996 |page = 6}}</ref><ref>{{cite magazine |title = The end of rail freight as we know it |magazine = [[The Railway Magazine]] |issue = 1140 |date = April 1996 |page = 7}}</ref><ref>{{cite magazine |title = Wisconsin Central decides: It's the English, Welsh & Scottish Railway |magazine = [[The Railway Magazine]] |issue = 1142 |date = June 1996 |page = 8}}</ref> leaving just Freightliner as the only other ex-BR freight business to be privatised to someone other than EWS.<ref name=RailArch50>{{cite web |url = https://www.railmagazine.com/operations/freight/freightliner-s-50-years |title = Freightliner's 50 years |publisher = Railways Archive |date = 23 December 2015 |access-date = 16 April 2019}}</ref>

The Rail Regulator (the statutory officer at the head of the [[Office of the Rail Regulator]] (ORR)) was established to regulate the monopoly and dominant elements of the railway industry, and to police certain consumer protection conditions of operators' licences. The Regulator did this through powers to supervise and control the consumption of capacity of railway facilities (his approval was needed before an access contract for the use of track, stations or certain maintenance facilities could be valid), to enforce domestic competition law, to issue, modify and enforce operating licences and to supervise the development of certain industry-wide codes, the most important of which is the network code. ORR's role only covered economic regulation; crucially reviewing every five years the access charges Railtrack could charge train operators for the operation, maintenance, renewal and enhancement of the national railway network. Safety regulation remained the responsibility of the [[Health & Safety Executive]]. The first Rail Regulator was [[John Swift (barrister)|John Swift]].<ref name="Prosser1997">{{cite book |first = Tony |last = Prosser |title = Law and the Regulators |url = https://books.google.com/books?id=GCrpGc_RZn8C&pg=PA190 |year = 1997 |publisher = Clarendon Press |isbn = 978-0-19-876391-8 |page = 190|via=Google Books}}</ref><ref name="Lodge2002">{{cite book |first = Martin |last = Lodge |title = On Different Tracks: Designing Railway Regulation in Britain and Germany |url = https://books.google.com/books?id=vNLngOsWlUIC&pg=PA131 |year = 2002 |publisher = Greenwood Publishing Group |isbn = 978-0-275-97601-9 |page = 131|via=Google Books}}</ref>

The [[Director of Passenger Rail Franchising]] took responsibility for organising the franchising process to transfer the 25 TOUs to the private sector and then develop the re-franchising programme for the future. The first Director of Passenger Rail Franchising was Roger Salmon.<ref>{{cite web |last1 = Poole |first1 = Fiona |title = Rail Passenger Franchises |url = https://researchbriefings.files.parliament.uk/documents/RP96-85/RP96-85.pdf |publisher = House of Commons Library |access-date = 1 February 2023 |date = 8 August 1996}}</ref>

===Subsequent changes===
{{Main|History of rail transport in Great Britain 1995 to date}}
{{See also|List of companies operating trains in the United Kingdom}}
Post-privatisation, the structure of the railways has remained largely the same, and the system is still based on competition between private operators who pay for access to the infrastructure provider and lease rolling stock from the ROSCOs.

A major change has been in the actual owner of the infrastructure. The aftermath of the [[Hatfield rail crash]] in 2000 led to severe financial difficulties for Railtrack.<ref name=times>{{cite news |url = http://find.galegroup.com/ttda/infomark.do?&source=gale&prodId=TTDA&userGroupName=wes_ttda&tabID=T003&docPage=article&searchType=BasicSearchForm&docId=IF502372356&type=multipage&contentSet=LTO&version=1.0 |first1 = Ian |last1 = Cobain |first2 = Michael |last2 = Harvey |first3 = Steve |last3 = Bird |title = Four killed and 33 hurt: mechanical failure blamed |newspaper = [[The Times]] |date = 18 October 2000 |access-date = 16 August 2016 |url-access = subscription |archive-date = 12 January 2021 |archive-url = https://web.archive.org/web/20210112000144/https://galeapps.gale.com/apps/auth?userGroupName=wes_ttda&origURL=https%3A%2F%2Fgo.gale.com%2Fps%2Fi.do%3Faction%3Dinterpret%26id%3DGALE%7CIF0502372356%26v%3D2.1%26u%3Dwes_ttda%26it%3Dr%26p%3DTTDA%26sw%3Dw&prodId=TTDA |url-status = live}}</ref><ref name = "timeline guardian2002">{{cite news |url = https://www.theguardian.com/world/2002/jun/27/transport.uk |title = Timeline: Railtrack |newspaper = The Guardian |first1 = Mark |last1 = Tran |first2 = Sarah |last2 = Left |first3 = Philip |last3 = Pank |date = 27 June 2002 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205011030/https://www.theguardian.com/world/2002/jun/27/transport.uk |url-status = live }}</ref><ref>{{cite news |url = https://www.telegraph.co.uk/news/1482439/Hatfield-crash-was-disaster-waiting-to-happen.html |title = Hatfield crash "was disaster waiting to happen" |newspaper = [[The Daily Telegraph]] |date = 31 January 2005 |access-date = 22 August 2016 |archive-date = 10 February 2018 |archive-url = https://web.archive.org/web/20180210181641/http://www.telegraph.co.uk/news/1482439/Hatfield-crash-was-disaster-waiting-to-happen.html |url-status = live}}</ref> Just under a year later, the company was put into a special kind of insolvency by the High Court in England at the direction of the government.<ref>{{cite web |url = https://www.independent.co.uk/news/uk/home-news/railtrack-goes-bankrupt-with-debts-of-acircpound33bn-630604.html |title = Railtrack goes bankrupt with debts of £3.3bn |work = The Independent |date = 8 October 2001 |archive-url = https://web.archive.org/web/20110312220300/http://www.independent.co.uk/news/uk/home-news/railtrack-goes-bankrupt-with-debts-of-acircpound33bn-630604.html |archive-date = 12 March 2011 }}</ref><ref>{{cite web |url = https://www.christianwolmar.co.uk/2001/10/rail-420-why-railtracks-fall-was-a-revolution-waiting-to-happen/ |title = Rail 420: Why Railtrack's fall was a revolution waiting to happen |website = christianwolmar.co.uk |date = 17 October 2001 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205025535/https://www.christianwolmar.co.uk/2001/10/rail-420-why-railtracks-fall-was-a-revolution-waiting-to-happen/ |url-status = live }}</ref> The circumstances of this action were controversial, and eventually led to the largest [[class action]] lawsuit in British legal history.<ref>{{cite news |url = https://www.telegraph.co.uk/finance/2918022/Byers-to-answer-charge-that-he-misled-Railtracks-shareholders.html |title = Byers to answer charge that he misled Railtrack's shareholders |newspaper = The Daily Telegraph |date = 25 June 2005 |access-date = 2 April 2018 |archive-date = 6 July 2016 |archive-url = https://web.archive.org/web/20160706212412/http://www.telegraph.co.uk/finance/2918022/Byers-to-answer-charge-that-he-misled-Railtracks-shareholders.html |url-status = live }}</ref><ref>{{cite news |url = https://www.theguardian.com/transport/Story/0,2763,1592837,00.html |title = Railtrack shareholders lose court battle for compensation |newspaper = The Guardian |date = 15 October 2005 |first = Mark |last = Milner |access-date = 12 December 2016 |archive-date = 28 July 2020 |archive-url = https://web.archive.org/web/20200728132043/https://www.theguardian.com/business/2005/oct/15/transportintheuk.politics |url-status = live }}</ref> The administration led to instability in its share price, and on 2 October 2002 a new organisation, [[Network Rail]], bought Railtrack.<ref>{{cite web |url = https://news.bbc.co.uk/2/hi/business/2267597.stm |title = Network Rail closer to Railtrack takeover |publisher = BBC News |date = 18 September 2002 |access-date = 20 May 2010 |url-status = live |archive-url = https://web.archive.org/web/20090917043501/http://news.bbc.co.uk/2/hi/business/2267597.stm |archive-date = 17 September 2009 |df = dmy-all}}</ref><ref>{{cite journal |title = An illusion of success: The consequences of British rail privatisation |first = Andrew |last = Bowman |journal = Accounting Forum |volume = 39 |issue = 1 |date = March 2015 |pages = 51–63|doi = 10.1016/j.accfor.2014.10.001 |s2cid = 154910139 |doi-access = free }}</ref> Network Rail has no shareholders and is a [[company limited by guarantee]], nominally in the private sector but with members instead of shareholders and its borrowing guaranteed by the government. During 2004, Network Rail took back direct control of the maintenance of the track, signalling and overhead lines, although track renewal remained contracted out to the private sector.<ref>{{cite web |url = http://www.networkrail.co.uk/careers/schemes/students-and-graduates/advanced-apprenticeship-scheme/ |title = UK brings infrastructure maintenance back in-house |url-status = live |archive-url = https://web.archive.org/web/20161026233524/http://www.networkrail.co.uk/careers/schemes/students-and-graduates/advanced-apprenticeship-scheme/ |archive-date = 26 October 2016 |df = dmy-all}}</ref><ref>{{cite web |url = http://www.networkrailmediacentre.co.uk/news/network-rail-announces-track-renewal-changes |title = Network Rail Announces Track Renewal Changes |work = News Releases |date = 11 September 2007 |url-status = live |archive-url = https://web.archive.org/web/20161027055036/http://www.networkrailmediacentre.co.uk/news/network-rail-announces-track-renewal-changes |archive-date = 27 October 2016 |df = dmy-all}}</ref>

Management of the passenger franchising system has also changed; during 2001, the functions of the [[Director of Passenger Rail Franchising]] were replaced by the [[Strategic Rail Authority]] (SRA), whose remit also included the promotion of freight services. Five years later, the SRA was in turn abolished in favour of direct control by the Department of Transport's Rail Group.<ref>{{cite web |url = http://www.opsi.gov.uk/si/si2006/20062925.htm |title = The Railways (Abolition of the Strategic Rail Authority) Order 2006 |website = Legislation of the Government of the United Kingdom |year = 2006}}</ref> Overall, the system of franchising has proceeded as designed, with franchises being either retained or transferred dependent on performance. On nine occasions to date, passenger franchises have had to be taken into (indirect) government ownership, [[South Eastern Trains]] (2003–2006),<ref>{{cite news |url = https://news.bbc.co.uk/2/hi/uk_news/england/3024804.stm |title = Train firm loses franchise |date = 27 June 2003 |access-date = 3 May 2008 |work = BBC News}}</ref> [[East Coast (train operating company)|East Coast]] (2009–2015),<ref name="official-documents1">{{Cite web |url = http://www.official-documents.gov.uk/document/hc1011/hc08/0824/0824.pdf |title = The InterCity East Coast Passenger Rail Franchise |publisher = Department for Transport |access-date = 17 September 2012 |archive-url = https://web.archive.org/web/20120604173403/http://www.official-documents.gov.uk/document/hc1011/hc08/0824/0824.pdf |archive-date = 4 June 2012 |url-status = dead }}</ref> [[London North Eastern Railway]] (2018–present),<ref>{{Cite web |url = https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/707389/short-term-intercity-east-coast-train-operator-2018-options-assessment-report-web-version.pdf |title = Short-term Intercity East Coast train operator 2018 options report |date = May 2018 |page = 20 (numbered 16) |access-date = 16 May 2018 |archive-date = 29 November 2020 |archive-url = https://web.archive.org/web/20201129215350/https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/893633/short-term-intercity-east-coast-train-operator-2018-options-assessment-report-web-document.pdf |url-status = live}}</ref> [[Northern Trains]] (2020–present),<ref>{{Cite news |url = https://www.bbc.co.uk/news/uk-england-51298820|title=Northern rail to be stripped of franchise, says Grant Shapps |last1 = Syal |first1 = Rajeev |date = 2 January 2020 |work = The Guardian |access-date = 2 January 2020 |last2 = Topham |first2 = Gwyn |language = en-GB |issn = 0261-3077}}</ref> [[Transport for Wales Rail]] (2021-present),<ref>{{Cite magazine |title = Wales & Borders rail franchise taken into public ownership |url = https://www.railwaygazette.com/uk/wales-and-borders-rail-franchise-taken-into-public-ownership/58456.article |date = 8 February 2021 |access-date = 10 February 2021 |magazine = [[Railway Gazette International]]}}</ref> [[Southeastern (train operating company)|Southeastern]] (2021-present),<ref name = olr2021>{{cite web |url = https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1068221/dft-olr-holdings-limited-and-se-trains-limited-2021-services-contract.pdf |title = Service Contract South Eastern |publisher = Department for Transport |date = 16 October 2021 |access-date = 6 March 2023}}</ref> [[ScotRail]] (2022-present),<ref name=bbc-20220209>{{cite news |url = https://www.bbc.co.uk/news/uk-scotland-glasgow-west-60319922 |title = Scotland's train services nationalised from 1 April |work = BBC News |date = 9 February 2022 |access-date = 20 March 2022}}</ref> [[TransPennine Express]] (2023-present),<ref name = dft0511 >{{Cite web |title = Transpennine Express to be brought into operator of last resort |url = https://www.gov.uk/government/news/transpennine-express-to-be-brought-into-operator-of-last-resort |access-date = 11 May 2023 |website = GOV.UK |archive-date = 11 May 2023 |archive-url = https://web.archive.org/web/20230511104425/https://www.gov.uk/government/news/transpennine-express-to-be-brought-into-operator-of-last-resort |url-status = live }}</ref> and [[Caledonian Sleeper]] (2023-present).<ref>{{cite web |url = https://www.transport.gov.scot/news/caledonian-sleeper-to-be-delivered-by-the-scottish-government/ |title = Caledonian Sleeper to be delivered by the Scottish Government |date = 2 March 2023 |access-date = 3 March 2023 |publisher = [[Transport Scotland]]}}</ref> Over time, some franchises have been merged and contract lengths have been extended; additionally, under the devolution programme, other government bodies have been given input into franchise terms – the [[Scottish Government]] with [[ScotRail (brand)|ScotRail]], the [[Welsh Government]] in [[Wales & Borders franchise|Wales & Borders]], as well as the [[Mayor of London]] and the various [[passenger transport executive]]s for the services in their respective areas. Since 2005, the [[Department for Transport]] has been using the [[community rail]]way designation to loosen the regulations and lower the costs and increase usage of certain socially necessary routes and services, although these remain within the TOC structure.{{CN|date=December 2023}}

In both the freight and passenger sectors, a small number of [[open access operator]]s (non-franchised operators of trains) have also emerged (some of which have since closed down).<ref>{{cite news |url = https://www.bbc.co.uk/news/uk-wales-12284468 |title = Wrexham-Shropshire-London direct rail link to end |work = BBC News |location = London |date = 26 January 2011 }}</ref><ref>{{cite magazine |title = Renaissance and GB Railways join to form Hull Trains Co |magazine = [[Rail Express]] |issue = 41 |date = October 1999 |page = 7}}</ref><ref name = "nation geog2021">{{cite news |url = https://www.nationalgeographic.co.uk/travel/2021/11/hot-topic-will-lumo-change-the-face-of-rail-travel-in-britain-everything-you-need-to-know-about-the-new-london-edinburgh-service |title = Hot topic: will Lumo change the face of rail travel in Britain? Everything you need to know about the new London-Edinburgh service |work = [[National Geographic UK]] |location = [[London]] |publisher = [[Disney Publishing Worldwide]] |first = Simon |last = Calder |date = 24 November 2021}}</ref> In terms of train ownership, the three ROSCOs continue to exist as originally established, although some now lease freight locomotives and wagons to the FOCs. They have also been joined by a variety of new leasing entities,<ref>{{cite magazine |title = New leasing company launched |magazine = [[International Railway Journal]] |date = February 2009 |page = 7}}</ref><ref>{{cite web |url = https://www.macquarie.com/au/about/newsroom/2012/20121129a |title = Macquarie Group acquires portfolio of rail assets from Lloyds Banking Group |publisher = Macquarie Group |date = 29 November 2012 |archive-url = https://web.archive.org/web/20200509163348/https://www.macquarie.com/au/about/newsroom/2012/20121129a |archive-date = 9 May 2020 |url-status = dead}}</ref><ref>{{cite magazine |url = https://www.railwaygazette.com/news/traction-rolling-stock/single-view/view/rock-rail-signs-first-rolling-stock-financing-deal.html |title = Rock Rail signs first rolling stock financing deal |magazine = [[Railway Gazette International]] |date = 18 February 2016 |archive-url = https://web.archive.org/web/20160218092554/https://www.railwaygazette.com/news/traction-rolling-stock/single-view/view/rock-rail-signs-first-rolling-stock-financing-deal.html |archive-date = 18 February 2016 |url-status = dead}}</ref> including [[spot-hire]] companies offering short-term leases,<ref>{{cite magazine |title = UK Rail Leasing's in-demand 56s set for overhauls |magazine = [[Rail Magazine]] |issue = 739 |date = 8 January 2014 |page = 12}}</ref><ref name = "rail archive">{{cite magazine |url = https://www.railmagazine.com/news/rail-features/from-the-archives-operations-options-and-opportunities |title = FROM THE ARCHIVES: Operations, options and opportunities |magazine = [[Rail Magazine]] |first = Richard |last = Clinnick |date = 9 October 2019}}</ref> as well as small-scale train owners offering to lease their private rolling stock. Furthermore, some operators, such as [[Network Rail]], have also purchased some rolling stock themselves.

The regulatory structure has also evolved; in line with changes to the regulation of other privatised industries, the position of [[Rail Regulator]] was abolished in 2004, replaced by a nine-member corporate board called the [[Office of Rail & Road|Office of Rail Regulation]], incorporating responsibility for safety regulation, previously the remit of the [[Health & Safety Executive]].<ref>{{Cite web |url = http://orr.gov.uk/about-orr/what-we-do/our-functions |title = Our functions |publisher = Office of Rail and Road |access-date = 7 January 2018}}</ref>

== Channel Tunnel infrastructure and services ==
{{unreferenced section|date=December 2023}}
Privatisation of British Rail occurred at the same time as the [[Channel Tunnel]] project linking Great Britain with France reached completion, with the tunnel itself being officially opened on 6 May 1994. Key parts of the project were a passenger rail service through the tunnel, dubbed [[Eurostar]], and the building of a new high-speed railway on the British side, the 109-kilometre (68 mile) [[Channel Tunnel Rail Link]] (CTRL), to link the tunnel to London.

With the CTRL still at the planning stage, Eurostar trains began operating on 14 November 1994 over the existing railway, with operations on the British sections of the track being done by European Passenger Services (EPS), a subsidiary set up by British Rail. To manage construction of the CTRL, British Rail had also set up another subsidiary, Union Railways. In 1996, in line with the rest of the privatisation process, the government signed a contract with the private company [[London & Continental Railways]] (LCR) to build the CTRL, and as part of that deal LCR became the owner of both EPS and Union Railways; LCR renamed EPS as Eurostar thus ending British Rail's input in the project.

As the project progressed, due to financial difficulties both LCR and its subsidiaries underwent various changes in financing, structure and planning, with the government and Railtrack (later Network Rail) becoming involved in the various plans and projects. In 2007, the second stage of the CTRL was finally completed (the CTRL being rebranded at that point as [[High Speed 1]] (HS1). By 2009 the government had assumed full control of LCR, announcing its intention to privatise it to recoup its investment; this was achieved in two stages, with the 2010 sale of a 30-year concession to own and operate HS1, and the 2015 sale of the British stake in the Eurostar operator (renamed in 2009 to Eurostar International Limited, EIL).

Through a subsidiary established in 2003, Network Rail is the maintainer of the infrastructure of HS1. Domestic passenger services are operated on parts of HS1 as part of the [[South Eastern franchise|Integrated Kent Franchise]], these commenced in 2009, operated by [[Southeastern (train operating company)|Southeastern]].

== Impact ==
{{multiple image
| width = 220
| image1 = GBR rail passengers by year 1830-2023.png
| caption1 = Rail passengers in Great Britain from 1829–2021
| image2 = GB Rail Subsidy, 1985-2019.png
| caption2 = GB rail subsidy 1985–2019 in 2018 prices, showing a short decline after privatisation, followed by a steep rise following the [[Hatfield rail crash|Hatfield crash]] in 2000 then a further increase to fund [[Crossrail]] and [[High Speed 2|HS2]]
}}
{{Main|Impact of the privatisation of British Rail}}
The impact of privatisation has been debated by the public, media and the rail industry ever since the process was completed. Whether to renationalise or otherwise make major changes to the post-privatisation model is an ever-present detail in the election manifestos of British political parties.<ref>{{cite web |url = https://www.economicshelp.org/macroeconomics/privatisation/rail-privatisation/ |title = Rail Privatisation in UK - Economics Help |website = Economics Help |access-date = 7 January 2019}}</ref>

Stated benefits of privatisation include improved customer service, and more investment; and stated drawbacks include higher fares, lower punctuality, increased overcrowding (due to fewer carriages in service) and increased [[rail subsidies]].

The major topics of debate concern whether the process has achieved its central aims of increasing levels of investment, performance, and customer satisfaction while reducing the cost to the taxpayer through [[rail subsidies]]. Safety also became a major issue after the [[Hatfield rail crash]] in 2000 and the [[Potters Bar rail accidents|Potters Bar rail crash]] in 2002 exposed flaws in the post-privatisation maintenance regimes.{{citation needed|date=August 2016}}

== See also ==
* [[Campaign to Bring Back British Rail]]
* [[History of rail transport in Great Britain]]
* [[Financing of the rail industry in Great Britain]]
* ''[[The Navigators (film)]]'' – by [[Ken Loach]], about a group of railwaymen just after privatisation
* [[Thatcherism]]

== References ==
{{Reflist}}

==Further reading==
* {{cite book |last = Parker |first = David |title = The Official History of Privatisation Vol. I: The Formative Years, 1970-1987 |publisher = Routledge |year = 2009 |isbn = 978-0-415-46916-6}}
* {{cite book |last = Parker |first = David |title = The Official History of Privatisation, Vol. II: Popular Capitalism, 1987-97 |publisher = Routledge |year = 2012 |isbn = 978-0-415-69221-2}}

== External links ==
* [http://www.libertarian.co.uk/lapubs/econn/econn091.pdf Libertarian Alliance: Why British Rail privatisation has failed] {{Webarchive|url=https://web.archive.org/web/20120205073122/http://www.libertarian.co.uk/lapubs/econn/econn091.pdf |date=5 February 2012 }}
* [https://archive.today/20041031110727/http://www.workersliberty.org/node/view/2094 Worker's Liberty: British Rail privatisation: What it means and why it happened] (2004)
* [http://www.economicissues.org/archive/pdfs/4v7p1.PDF Economic Issues: Subsidy and productivity in the privatised British passenger railway]
* [http://www.eriksrailnews.com/archive/thatcher.htm British Rail Sidetracked] (1996)
* [http://www.tssa.org.uk/about/single-or-return/chapter31.htm "Single or Return – the official history of the] {{Webarchive|url=https://web.archive.org/web/20060518091608/http://www.tssa.org.uk/about/single-or-return/chapter31.htm |date=18 May 2006 }} [[Transport Salaried Staffs' Association]] – Chapter 31 "More Privatisation".
* [http://www.tssa.org.uk/about/single-or-return/chapter32.htm "Single or Return – the official history of the Transport Salaried Staffs' Association] {{Webarchive|url=https://web.archive.org/web/20060504102355/http://www.tssa.org.uk/about/single-or-return/chapter32.htm |date=4 May 2006 }} – Chapter 32 "Preparing for Railway Privatisation; The Railways Act (1993); BR Privatisation – The Final Phase?".
* [http://www.publicworld.org/files/britrail.pdf The high public price of Britain's private railway] {{Webarchive|url=https://web.archive.org/web/20141210113538/http://www.publicworld.org/files/britrail.pdf |date=10 December 2014 }}, on Public World.
* {{facebook|bringbackbritishrail|Bring Back British Rail}}
* [https://web.archive.org/web/20070107102122/http://ec.europa.eu/comm/competition/state_aid/legislation/91l237_en.html EU Directive 91/440 of 29 July 1991]
* [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32001L0012:EN:HTML EU Directive 2001/12 of 26 February 2001, amending 91/440]
* [http://www.opsi.gov.uk/acts/acts1993/Ukpga_19930043_en_1.htm Railways Act 1993]
* [[Transport Act 2000]] [http://www.opsi.gov.uk/ACTS/acts2000/20000038.htm]
* [http://www.opsi.gov.uk/acts/acts2005/20050014.htm Railways Act 2005]
* [http://www.rail-reg.gov.uk/ Office of Rail Regulation] {{Webarchive|url=https://web.archive.org/web/20140127201437/http://www.rail-reg.gov.uk/ |date=27 January 2014 }}

{{GB-rail-history}}
{{British Rail}}
{{John Major}}

[[Category:Privatisation of British Rail| ]]
[[Category:1993 in rail transport]]
[[Category:1993 in the United Kingdom]]
[[Category:History of British Rail]]
[[Category:History of rail transport in the United Kingdom]]
[[Category:Transport policy in the United Kingdom]]