Labour pledges to nationalise rail network within five years

Vow to end shareholder dividends and cut waste to prioritise cheap fares

- Jessica Elgot , Gwyn Topham

Labour will pledge today to fully nationalise the train network within five years of taking power and guarantee the cheapest fares in "the biggest reform of railways for a generation". 

One of Labour's first major acts of reform in government will bring all passenger rail into national ownership under Great British Railways as contracts with private owners expire - a plan endorsed by the architect of the Conservatives' own rail plan.

In a speech today, the shadow transport secretary, Louise Haigh, will announce that Labour also plans to cut waste and claw back shareholder dividends, saving £2.2bn. It will establish a new watchdog, the Passenger Standards Authority, to scrutinise the new system.

Passengers will be offered best price ticket guarantees, automatic delay repay and digital season tickets across the network.

Haigh will say renationalisation "is not going to be easy and it will take hard graft - but it will be my mission to get us to the right destination and to deliver for the Great British passenger".

Labour insiders hailed the pledges as the moment the party would begin to champion its more radical proposals in the run-up to an election campaign after a series of U-turns, including on green investment. They said Haigh's plan was a key plank to counter the narrative that Labour had only meagre plans for reform, alongside workers' rights and planning.

"We will show we will make bold policy changes where the current settlement is failing," a Labour source said. "But this is not just ideology, this is a detailed plan for reform."