Ed Miliband speaks to supporters at Redbridge on May 1, 2014. Photograph: Getty Images.
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Labour's new rail plan: the full details

Party vows to end "ideological obsession" with privatisation by allowing the state to bid for franchises. 

One of the biggest decisions that will be taken at Labour's National Policy Forum, which opens in Milton Keynes tomorrow (and runs until Sunday), will be over the party's rail policy. As has long been known, Labour will pledge to reform the franchising system to allow state and not-for-profit firms to bid for contracts as they expire (in contrast to the coalition's dogmatic allegiance to the private sector). But transport unions have been pushing the party to go further and promise to automatically return franchises to public ownership. 

Ahead of the NPF, however, a source close to Jon Cruddas has said that "there is now general agreement across the Labour movement" around the package proposed by the leadership. This includes a pledge to legislate to allow a public sector comparator to compete with private firms for franchises "on a genuinely level playing field". 

Billed as the biggest proposed reform of the railways since privatisation, it also features a commitment to create a new overarching body, accountable to parliament, tasked with implementing a national strategy for the railways. This would bring Network Rail and a new passenger rail body together to co-ordinate passenger operations, manage infrastructure, oversee stations and ticketing, and ensure customer satisfaction across the network. 

As part of its plan to ease the living standards crisis, Labour will also pledge to cap annual fare rises on every route, simplify price structures and create a new legal right to the cheapest ticket. And it will promise to devolve regional and commuter services in an attempt to improve local transport, integrating trains, buses and trams - a plan modelled on Transport for London. 

A source close to Cruddas said: 

There is now general agreement across the Labour movement around Jon's bold package for how we reform the way our railways are run. We want to get rid of the Tories’ failed franchising model and an ideological obsession which puts privatisation ahead of common sense - without going back to the old days of British Rail.

Instead, Labour is determined to face up to the need for bigger reforms which meet the challenges facing our creaking transport system in the 21st Century. 

The package being discussed by the NPF this weekend goes beyond the public versus private debate. It would deliver a broader, radical reform agenda to save money and stop passengers being ripped off. It would allow us to plan railways that will serve our country as a whole and local communities better.

Above all, it would put right the mistakes made 20 years ago and put the taxpayer and rail passengers first.

Since 2010, commuter fares have increased by 20 per cent, leaving UK fares at least 30 per cent more expensive than those in other countries. Labour concedes that the franchising model adopted after privatisation in 1994 has delivered some improvements, but argues that a one-size-fits-all approach has failed to secure the best deal from private operators, with the collapse of the West Coast franchise process costing more than £50m. 

The task for Miliband will now be to build a consensus around this package. The proposal will be discussed in amendment meetings tomorrow followed by a vote of delegates on Sunday. Based on conversations with Labour sources tonight, the leadership is now confident of winning majority approval for the plan. 

Here's the motion that will be debated tomorrow:

"Since the late 1990s there has been significant investment in the railways and passenger numbers have grown sharply. But it is now clear that the rail system is not delivering a fair deal for passengers or the taxpayer, almost 20 years on from the botched privatisation of the railways. Both public subsidy and fares are higher than in other countries, and there is no 'guiding mind' overseeing the railways, planning investment and ensuring results. We have also seen a chaotic franchising process in recent years that has cost millions. To tackle these problems the next Labour government will:

"Review this government's failed franchising process as a priority, after the chaos of recent years, to safeguard taxpayer and passenger interests and put in place a system that is fit for purpose.

"Learn the lessons of East Coast, where we have seen the benefits of a not-for-dividend operator running rail lines, by legislating to allow a public sector operator to be able take on lines and challenge the train operators on a genuinely level playing field to secure value for money for passengers and taxpayers.

"Devolve decisions over the running of regional and local services, including to Scotland and Wales, so that areas can bring together trains, buses, ferries and trams into a single network.

"Tackle the monopoly market for rail rolling stock by giving Network Rail greater responsibility for developing a long term plan for procurement and leasing of new rolling stock.

"Create a new guiding mind for the railways, bringing Network Rail together with a new passenger rail body to contract routes, co-ordinate services, oversee stations and ensure customer satisfaction across the network.

"Ease the pressure on fare payers with the efficiencies these reforms release and by capping annual fare rises on every route, simplifying fare structures and creating a new legal right to the cheapest ticket."

George Eaton is political editor of the New Statesman.

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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage