Labour is accused of recklessly “rushing through” legislation to renationalise Britain's railways as it “sets the stage” for the biggest reforms in a generation.

Labour was accused of recklessly “rushing through” legislation to renationalise the railways.

Last night, MPs in the House of Commons waved through the Passenger Transport Services Bill, which, if passed into law, would lead to the renationalisation of privatised services when contracts expire or operators fail to meet their obligations.

But just a few hours earlier, new figures had shown that state-owned railway operators are less punctual and receive far more complaints than private railway companies.

Ministers have said the legislation is estimated to save taxpayers up to £150 million a year in fees currently paid to private rail companies.

But senior Tories said DfT OLR Holdings Limited (DOHL) – the company set up by the Department for Transport that currently operates four rail franchises – had a “mixed” record and was unwilling to take over any more lines.

Transport Secretary Louise Haigh (pictured) said: “I am launching the biggest railway reform in a generation.”

Ministers have claimed the legislation will save taxpayers up to £150 million a year in charges. (Pictured: an Azuma Rail LNER train at Kings Cross station)

Data from the Office of Rail and Road shows that privately run railway companies have an average punctuality rate of 64.36 percent per year, compared with an average of 57.7 percent for state-owned companies.

State-owned franchised companies in England – London North Eastern Railway, Northern, Southeastern and TransPennine Express – faced 19,317 passenger complaints in 2023/24 – 5,633 more than their private counterparts.

Conservative transport spokeswoman Helen Whately claimed ministers were “rushing through the ideological redesign of our rail system despite there being no evidence to support their approach”. She told the Commons yesterday: “There is no good reason to rush this through in one day rather than rushing it through in a normal legislative committee which would allow sufficient time for such a substantial and significant change to be discussed.”

“In a hurry, this bill takes a one-size-fits-all approach, cutting off funding to even the best rail companies, despite the Department for Transport's mixed record with the companies they already operate.

“The bill does not provide any controls or incentives to reduce the risk of increased costs for taxpayers and passengers. The same applies to performance. Where are the incentives in this bill to improve it or the protection for passengers if performance deteriorates when [Transport Secretary Louise Haigh] sits at the controls of our trains?'

Ms Whately added that DOHL was not in a position to acquire any more companies, adding: “DOHL has had mixed results with the franchises it has already acquired.”

Yesterday the Government launched Shadow Great British Railways, a new body bringing together senior executives from the Department for Transport, Network Rail and public service operators, with the aim of eventually turning it into a national rail company called Great British Railways. Ms Haigh said: “I am giving the green light to the biggest reforms to our railways in a generation. I am determined to put an end to the chaos, delays and disruption that people face every day when travelling by rail.”

A Downing Street spokesman said: “We will make no apology for wanting to make progress on these important reforms that will lead to better services.”