THE rail industry last night launched a fightback against Labour’s plan to renationalise the railways, warning it will lead to higher costs for taxpayers.
Louise Haigh will finally set out how her party will bring the running of the trains back under Government control
Ms Haigh will insist the taxpayer will not pay a “penny in compensation costs” as train operations will only be brought into public ownership when current contracts expire.But the proposal has come under fire from industry bodies, with Rail Partners warning it will lead to increased taxpayer costs and potentially reduced train services.
He added: “Over time, the increased costs to the taxpayer of nationalisation due to the loss of commercial focus from private train companies will lead to either reduced train services or increased subsidy.
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