Skip to content
Saturday 22 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,816.56
+0.64%
DAX
26,136.56
+0.59%
CAC 40
8,484.43
+0.37%
STOXX 50
6,462.22
+0.63%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Wednesday 16 October 2019 3:00 pm  |  Updated:  Wednesday 16 October 2019 8:07 pm

Arriva-run Northern Rail franchise could be nationalised

By: Alex Daniel

Add as a preferred source on Google
Northern Rail Arriva

One of Britain’s biggest rail franchises could be renationalised amid concerns about its financial situation and late-running trains, the transport secretary has said.

Grant Shapps said he is considering whether Northern Rail, which is run by German operator Arriva, should be brought under state control.

Read more: Arriva seeks £200m from government over East Midlands franchise snub

He told MPs the franchise “cannot continue” running services so late. Northern Rail operates across most of the north of England, stretching from Liverpool to beyond Newcastle.

The transport minister told the cross-party transport select committee of MPs that he had asked for proposals to take over the franchise from the governments so-called Operator of Last Resort (OLR).

Arriva, which is owned by the German state, has also been asked to draw up plans for how it will make dramatic improvements to its service.

On Friday, Transport for the North said it believed the franchise should be taken into public hands.

David Brown, Managing Director at Northern, said: “These discussions have no impact on rail services for customers. Our job is to continue to provide the best service possible for our customers whilst any discussions are taking place.”

He added that the firm was “well underway” with the development of a shorter so-called ‘Direct Award’ business plan for the franchise.

Just over half Northern Rail trains run on time

According to recently-released on-time statistics from the Office for Rail and Road (ORR), just 57 per cent of Northern Rail trains run on time, while the UK average is 65 per cent.

“Nearly two-thirds of all trains arrive on time but if you’re on Northern it’s not much over half. That is a big gap,” he said.

Read more

Virgin Trains gets green light for channel tunnel route

Red Virgin high-speed train on tracks at a station platform, under an arched glass roof, with blurred people.

He said writing to both Arriva and the OLR was only the “first phase” of the process, for which a final decision could be taken in late 2019 or early 2020.

But if the government decides to renationalise Northern, it would be the second time in a matter of years that it has brought a franchise back into public hands.

Last year, it stripped Virgin Trains East Coast of its contract after the operator ran out of money trying to keep up with payments.

That was replaced by London North Eastern Railway, which is run by the OLR.

Read more: Abellio boss ‘confident’ review head will not scrap franchise model

Such a move would run contrary to the Conservative government’s policy of private operation of Britain’s railways. 

It comes ahead of a hotly-anticipated report by Keith Williams, a former British Airways chief executive, which is expected to call for a replacement for the current franchising system.

A Department for Transport spokesperson said: “We are developing contingency plans for the replacement of the current franchise with either a new short-term management contract with Northern or the Operator of Last Resort (OLR).

“In the context of significant challenges facing the operator, such as delays to infrastructure upgrades and historic underinvestment in the northern rail network, issuing a request for proposal enables the department to examine whether the contract is properly aligned with current operating challenges in the North.

“It also allows us to determine whether the franchise owner or an OLR would be best placed to tackle these issues and deliver for passengers.”

Read more

The BBC shouldn’t push Londoners to accept antisocial phone behaviour 

Passengers inside a graffiti-covered London Underground train car, some looking at phones, others observing the interior.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Transport & Infrastructure

Related Topics

  • Railways

Trending Articles

  • House prices in wealthy London boroughs fall by up to £300,000

  • As it happened: Miners fuel FTSE 100 recovery; oil jumps as Trump claims Strait of Hormuz

  • City law firm sues prominent Emirati business family

  • Amanda Blanc has worked her magic at Aviva

  • As it happened: FTSE 100 rallies after JD Sports drags on blue chips; oil jumps again

More from Morning Wire

  • Virgin Trains gets green light for channel tunnel route

    Transport & Infrastructure
    Red Virgin high-speed train on tracks at a station platform, under an arched glass roof, with blurred people.
  • The BBC shouldn’t push Londoners to accept antisocial phone behaviour 

    Opinion
    Passengers inside a graffiti-covered London Underground train car, some looking at phones, others observing the interior.
  • Trump-linked Kushner and ex-Disney boss to buy £9bn LA Lakers from Chelsea co-owner

    Sport Business
    Luka Dončić in a purple Lakers jersey with number 77, smiling on a basketball court
  • Exclusive: Plans for city-based, private equity-backed athletics league revealed

    Sport Business
    Female official in headset and hat raising a starting pistol at a sporting event, crowd blurred in background
  • Gatwick expansion green-lit as court throws out activists’ appeal

    Transport & Infrastructure
    20m passengers have flown through Gatwick this year
  • MoN Takanawa: The Museum of Narratives Launches New Season “Sound as Culture” Starting October 1

    Business Wire
  • Voi rides on in London borough despite council order

    Transport & Infrastructure
    Voi electric scooters lined up on a city street, highlighting urban mobility solutions and eco-friendly transportation opt...
  • In defence of The Hundred, by co-chair of Welsh Fire

    Sport Business
    Chris Woakes, cricketer in a red uniform, raising his arms in celebration on the field.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook