Government explores buying trains over leasing in new rail strategy
Passengers will benefit from more reliable trains, better connectivity and a greener railway across the UK.
- government will consider public ownership of trains rather than leasing where it’s best for passengers and taxpayers
- public ownership of trains could offer greater flexibility and substantial savings in some circumstances
- part of new strategy for trains across Great British Railways, joining up operations to create a simpler, more reliable and modern railway and support jobs across the country
New trains could be publicly owned rather than leased, as part of plans set out today (28 September 2026) by the government in a new strategy for trains and infrastructure.
For the first time in 30 years, the railway will take a coordinated approach through Great British Railways (GBR) to decide on trains, track, depots and maintenance, ensuring investment is planned across the entire network instead of in isolation.
The rolling stock and infrastructure strategy sets out a new policy for future train procurements. For the first time, GBR will assess whether direct public ownership, leasing or other financing arrangements offer the best value for taxpayers and fare payers.
Stronger public control over essential services like transport will help make sure they are designed and run in the best interests of the public, making them work for people and places again. The government’s decision to take back public control over the railways will create a more joined‑up system that puts passengers first, delivers better and more reliable services and leaves the fragmentation of the past behind.
For more than 3 decades, most passenger trains have, by default, been owned by rolling stock companies and leased to operators.
Now, GBR will take a case-by-case approach to new trains and consider whether private or public ownership gives taxpayers the best overall value.
Leasing and maintenance costs for trains cost taxpayers and passengers more than £4 billion a year, and the Office of Rail and Road reports that yearly dividends from rolling stock companies totalled more than £2.5 billion over the last 10 years.
Leasing will remain in place for existing contracts, but it will no longer be treated as the default choice for new trains. In some circumstances, buying trains outright could offer substantial savings for passengers and taxpayers.
This strategy follows the recent announcement that saw Alstom receive £1 billion investment for a brand-new fleet of UK-made battery-powered GBR trains for the Transpennine Route Upgrade, securing hundreds of jobs in Derby and thousands more across their supply chain.
The strategy provides further certainty for the rail supply chain for the UK by providing the basis for a clearer, longer-term pipeline of investment in trains and infrastructure.
Alongside this, GBR will prioritise the social benefits of these contracts, primarily skills and jobs. It will ensure successful contracts provide jobs and opportunities to the UK workforce, giving GBR a central role in supporting UK businesses, strengthening skills and capability in every postcode.
Passengers will benefit from improved reliability as fleets, infrastructure and maintenance are planned together, while future trains will feature enhanced passenger information systems and more consistent digital connectivity.
GBR will enable closer working under public ownership, removing the barriers that stop operators and Network Rail from working together to reach solutions that best meet passenger needs.
The strategy also includes plans for ‘fleet families’ which create a more standardised design across train types, providing more consistent and accessible trains so passengers always know what to expect and trains can be used more flexibly across the network.
As part of the transition to a greener railway, GBR will progressively replace diesel trains with cleaner technologies, with battery-powered trains expected to play a role alongside continuing the programme of electrification.
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