Passenger Railway Services (Public Ownership) Act 2024

1 Prohibition on franchise extensions and new franchises

(1) The Railways Act 1993 is amended in accordance with subsections (2) and (3).

(2) For sections 25 to 26ZA substitute—

“25A Prohibition on franchise extensions and new franchises

(1) The franchise term in relation to a franchise agreement may not be extended except in accordance with section 30A (temporary continuation of existing franchises).

(2) The Secretary of State may not enter into a franchise agreement except in accordance with section 30A.

(3) The Welsh Ministers and the Scottish Ministers may not enter into a franchise agreement.”

(3) In section 23 (passenger services to be subject to franchise agreements)—

(a) in subsection (1), for “franchise agreements” substitute “sections 30 to 30C”;

(b) in subsection (2ZA)(a), for “under the same franchise agreement as” substitute “together with”;

(c) in subsection (2ZD)(a), for “under the same franchise agreement as” substitute “together with”;

(d) in subsection (3)—

(i) in the definition of “franchise agreement”, after “another party” insert “which is not a public sector company (as defined in section 30C)”;

(ii) in the definition of “franchise term”, after “section 29(3)” insert “or 30A(2)(b)”;

(e) for the heading substitute “Designation of passenger services”.

(4) A designation made under section 23 of the Railways Act 1993 before this section comes into force is treated as having been made under that section as amended by subsection (3) of this section.