MPs voted to give the Bill designed to help nationalise train operation in Britain a second reading.
The Passenger Railway Services (Public Ownership) Bill would ensure that appointing a public sector train operator as existing contracts expire becomes the default position rather than a last resort.
If passed, privately-owned operators such as Avanti West Coast, East Midlands Railway, Great Western Railway and Thameslink would be gradually brought into public ownership.
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MPs voted 351 to 84, majority 267, to give the Bill a second reading on Monday evening and it is expected to clear its remaining stages in the Commons on September 3.
Transport Secretary Louise Haigh said there was “nothing ideological about fixing what’s broken” and also pledged to “rip up contracts early” if train operators do not meet their obligations to passengers.
Shadow transport secretary Helen Whately labelled the Bill “a rushed piece of left-wing ideology”, although Liberal Democrats’ transport spokeswoman Wera Hobhouse said passengers were “repeatedly failed” under the previous Conservative government.
Speaking during the Bill’s second reading, Ms Haigh told the Commons: “At the general election, when millions of people called time on years of dysfunction, disruption and decline, they demanded change not only in how this country is governed, but in how it works.
“Because, for too many, from our economy to our public services, this country simply does not work any more. The things we rely on are letting us down too often.
“Lifelines have turned into liabilities.”
Ms Haigh promised to reform “the overly complex fare system so passengers are confident they’re getting the best value” and tackle overcrowding on busy trains by moving vehicles to where they are needed.
She also said the Government would roll out benefits such as digital pay-as-you-go across the network and “put accessibility at the core of our rail offer, so passengers with disabilities can expect a consistent level of service”.
Ms Haigh also proposed in the long-term a single company to run both track and trains, a suggestion that her department could merge Network Rail – the public body which owns and runs infrastructure like tracks, wires and signals – with train operating companies.
“That means fundamental reform – no ifs, no buts,” the Transport Secretary said.
“I will not tolerate the status quo. I will not hesitate to demand improvements and I won’t be afraid to rip up contracts early if operators default on their obligations to the public.”
Conservative Ms Whately faced laughter from the Government benches when she said Great Britain’s existing rail system is “envied” by European neighbours.
Ms Whately said: “We often hear it said in this country that our rail system should be more like those in Europe, where under a utopian system of public ownership the trains always run on time and every journey costs less than a pint of beer.
“But that’s not how the Europeans see it. In fact, in terms of the growth in passenger numbers, and the controls on cost that privatisation delivered, our network is actually envied by Europe.”
Ms Whately added: “I will gladly offer my support to anything [Ms Haigh] does to make our railways more reliable and more affordable. This Bill isn’t going to do that. It’s a rushed piece of left-wing ideology.
“The evidence both here in the UK and across Europe shows an effective public-private model where the incentives are properly aligned delivers more choice, more passengers and greater efficiency.”
Ms Hobhouse said: “Our railways are in dire need of improvement. Under the last Conservative government, passengers were repeatedly failed.
“Services are poor and the ticketing system is in shambles all while the public keeps paying more and more, year on year.”
