In 1914, the railways were taken into temporary government control - but not ownership - due to
World War I, but were returned to the original owners in 1921, three years after the war had ended. However, in that same year, the government introduced the
Railways Act 1921. This forced the 120 railway companies then operating to merge into just four. This grouping officially took place on 1 January 1923. The four railway companies formed from the grouping were: The
Great Western Railway, the
Southern Railway, the
London & North Eastern Railway, and the
London, Midland & Scottish Railway. After
World War II, the railways were effectively nationalised. They were heavily damaged by enemy attacks and were run down aiding the war effort, as well as still suffering financially from the
Great Depression even with it mostly ending before the war. After the war, the
Transport Act 1947 provided for nationalising the four major railways. On 1 January 1948, the railways were formally nationalised and
British Railways was created, under the overall management of the
British Transport Commission, later the
British Railways Board. Railways in
Northern Ireland were nationalised in the 1940s under the
Ulster Transport Authority (UTA). The former LMS lines managed by the
Northern Counties Committee, nationalised by the Westminster government, were sold to the UTA by the British Transport Commission in 1949.
Privatisation British Rail was privatised between 1994 and 1997, involving the transfer to a series of private-sector operators of responsibility for the provision of services under contract. In all, more than 100 companies took over from
British Rail. In 2001 the track operator
Railtrack went bankrupt; it was reconstituted and renamed as
Network Rail, a private company with no legal owner but effectively government-controlled via its constitution and financing. The United Kingdom government continues to invest in the railways, financing, for example, the acquisition of
some InterCity rolling stock. The positive
impact of privatisation is disputed, with passengers numbers more than doubling (see graph) and increasing customer satisfaction balanced with worries about the level of
rail subsidies and criticism of the fact that much of the system is now contracted out to subsidiaries owned by the state owned railways of France, Germany and the Netherlands. Only 20% of
Southern trains arrived on time in the year from April 2015 to March 2016, and there was an ongoing industrial dispute over driver-only operated trains. In June 2016, amongst criticism of the performance of its services,
Go-Ahead Group warned of lower than anticipated profits on its
Govia Thameslink Railway franchises, leading to 18% drop in the Go-Ahead share price. Unlike British Rail, the Northern Ireland Railways remain state owned. The franchisee system for passenger rail effectively ended in March 2020, when the Department for Transport switched every passenger line to an "Emergency Measures Agreement", whereby the franchisees would still operate the line, but the government would take all cost-risk and all revenue. This was initially supposed to be a temporary measure to keep trains running during the pandemic, but in September 2020, the Minister for Transport, Grant Shapps published a press release entitled "Rail franchising reaches its terminus as a new railway takes shape". The government acknowledged in this release that rail privatisation "was no longer working",
Re-nationalisation In July 2024, the new
Starmer government confirmed that they would continue the previous Conservative government's plans to set up
Great British Railways to oversee
rail transport in Great Britain. The government also confirmed that
train operating companies would gradually be brought back into
public ownership upon the expiration of their contracts and then folded into the new publicly owned body. On 25 May 2025, Labour's renationalisation of the UK's railways began as the train operator
South Western Railway was taken into public ownership. Passenger train operators continue to be renationalised, with services to be managed at some future time by
Great British Railways, with
c2c taken back into public ownership on 20 July 2025. ==United States==