Tommy Tainant
Diamond Member
Government suspends rail franchise system after passengers plummet
Rail passenger numbers have collapsed in the wake of coronavirus
www.investorschronicle.co.uk
The UK government has suspended rail franchise agreements for six months and agreed to assume all revenue and cost risk posed to operators, after railways experienced a 70 per cent drop in passenger numbers following the advent of coronavirus.
They called Corbyn a commie for proposing this during the election and now here we are. This is initially for 6 months but they will likely find that corporations will be reluctant to return to this industry when things get back to normal.
The railways are an essential service and the private companies have always been backed by government money. Time to rip up the facade and run the network for the benefit of the country.