Labour should renationalise the rail industry if it wins the next election, a group of 31 prospective MPs has said.

 

　　In a letter to the Observer, they said services should be returned to public ownership when current franchises end.

 

　　The candidates, many of whom are fighting marginal seats in commuter constituencies, said profits could fund “a bold offer on rail fares”.

 

　　Labour is undertaking a policy review. Party sources have said there is no imminent decision on railways.

 

　　Leader Ed Miliband has previously told the Guardian newspaper he might be in favour of renationalising some parts of the railway.

 

　　He said the party was working on “innovative solutions”, but did not spell out what they were.

 

　　‘Successful model’

　　The candidates said rail fares were contributing to a “cost-of-living crisis” and claimed season tickets were now the largest monthly expense for many commuters.

 

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　　Hundreds of millions currently lost in private profit would be available to fully fund a bold offer on rail fares”

 

　　Prospective Labour MPs

　　“Just as Labour has pledged to freeze energy bills and reset the market to secure a better deal for customers, so it will be necessary to reform the rail industry to secure a better deal for passengers,” they said in the letter.

 

　　The candidates, who will fight for seats at the next general election, said train companies were walking away with “hundreds of millions of pounds every year, despite running monopoly services and benefiting from ￡4bn of public investment in the rail network every year”.

 

　　They claimed the “successful model” of the East Coast mainline over the last few years had shown there was a better way to run the country‘s railways.

 

　　The service, which covers the route between London and Edinburgh, has been publicly-run since 2009 after the government took control of the franchise when National Express, the previous operator, ran into financial difficulties.

 

　　However, the line is due to return to private hands in early 2015.

 

　　The TSSA rail union has claimed the line has been the cheapest franchise to run for the past five years and has produced the greatest return to taxpayers.

 

　　“A commitment to extend this successful model to the rest of the rail network, as existing contracts come to an end, would mean that hundreds of millions currently lost in private profit would be available to fully fund a bold offer on rail fares,” the group of parliamentary hopefuls wrote.

 

　　The letter comes as the Labour Party undertakes a wide-ranging policy review ahead of next year’s general election.

 

　　The coalition government has previously said franchising works for taxpayers and passengers, adding that the private sector would offer investment in train services.