Government U-turn over plan for new train ticket retailer

The Department for Transport highlighted the ‘important role’ of the private sector as it announced the change in policy.

The government has axed plans to set up a train ticket retailer (PA Archive)

Plans to create a Government-backed online train ticket retailer have been axed just days after a regulator warned private companies are charging hidden fees.

The Department for Transport (DfT) highlighted the “important role” of the private sector as it announced the U-turn.

The proposal for a new website and app to sell tickets was introduced in May 2021 by then-transport secretary Grant Shapps in a bid to make the process simpler.

We are not pursuing plans to deliver a centralised Great British Railways online rail ticket retailer

Department for Transport

This was due to be a responsibility of planned public sector body Great British Railways (GBR), and would have rivalled ticket retailers run by private companies.

On Monday, the Office of Rail and Road published a report stating that seven businesses, including Trainline, use drip pricing, which involves charges being added to advertised low prices.

The regulator’s review found that booking fees ranged from 45p per ticket to £6.45 per transaction.

In February, Transport Secretary Mark Harper pledged to enhance the role of the private sector in Britain’s railways.

Announcing the decision not to create a new ticket retailer, the DfT insisted it is “committed to improving passenger experience on the railways”.

Train operators will continue to retail to passengers online alongside existing third-party retailers while we develop measures to spur further competition in the online rail ticket retail market to make things better for passengers

Department for Transport

It said in a statement: “The private sector plays an important role in driving innovation and attracting more customers to the railway.”

It went on: “We are focused on opening up railway data and systems, lowering barriers to entry for independent rail ticket retailers to improve passenger experience.

“We are confirming that we are not pursuing plans to deliver a centralised Great British Railways online rail ticket retailer.

“Train operators will continue to retail to passengers online alongside existing third-party retailers while we develop measures to spur further competition in the online rail ticket retail market to make things better for passengers.”

Trainline shares rose by 14.5% in early trading on Friday following the DfT’s announcement.

Shares in the business dropped by around a quarter when the Government proposals were first unveiled in May 2021.