South Western Railway (SWR) will be the first rail operator to return to public ownership as part of the Government’s efforts to reform the nation’s rail system.

On Tuesday, the Department for Transport (DfT) confirmed that SWR, which operates London commuter services from stations such as Farnham, Alton and Woking, will transition to public control once its current contract with FirstGroup and MTR expires in May 2025.

The newly publicly operated services will be managed by Operator Limited, formerly known as the Operator of Last Resort. This entity will eventually be integrated into Great British Railways (GBR), the new organisation set to oversee rail operations across the UK.

This announcement follows the recent passage of the Passenger Railway Services (Public Ownership) Act 2024, which received Royal Assent just days before.

The move to bring South Western Railway into public ownership is part of the Government’s broader plan to improve rail reliability, cut waste, and increase public accountability in the sector.

The transition to a publicly run service is also seen as a crucial step in addressing persistent problems with delays, cancellations, and underperformance, which have plagued the rail system under the current franchise model.

It is hoped the move will save up to £150 million a year, while coming at no additional cost to the taxpayer.

Transport Secretary Heidi Alexander said: “For too long, the British public have had to put up with rail services which simply don’t work. A complex system of private train operators has too often failed its users.

“Starting with journeys on South Western Railway, we’re switching tracks by bringing services back under public control to create a reliable rail network that puts customers first.

“Our broken railways are finally on the fast track to repair and rebuilding a system that the British public can trust and be proud of again.”

The Department insisted there would be no adverse impact on passengers during this time, who will still be able to purchase their tickets as before.

Railway Industry Association (RIA) chief executive Darren Caplan said: “Today’s announcement is an important milestone on the journey to a restructured railway.

“The UK supply chain will work with and support the Government’s plans to deliver improved rail performance and reliability, as we together develop world class rail, both track and train.

“There is now a real opportunity to provide more certainty and visibility over work plans, which will help a reformed railway be a catalyst for boosting growth and connectivity across the nations and regions of the UK, with better services for rail customers – passengers and freight – and ultimately ensure enhanced value for money for the taxpayer.”

Other services across a wide area of southern England and East Anglia will also return to public control by autumn 2025.