Operator of last resort
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An operator of last resort is a business in the United Kingdom that operates a railway franchise on behalf of the government when a train operating company (TOC) is no longer able to do so, and it is nationalised on an interim basis. Since the last appointment in June 2023, there are now six such operators of seven rail services in England, Wales and Scotland. In December 2024, following new legislation in November, it was announced that the first of the remaining contracted TOCs would be taken back into public ownership in May 2025.[needs update]
Under the Railways Act 1993, which privatised passenger operations in the United Kingdom, the government is required to maintain continuity of passenger rail services if a franchise is terminated. In some instances, the government has negotiated for the existing franchisee to continue to operate the franchise on a management contract until it can be relet, as happened when GNER defaulted on the InterCity East Coast franchise in 2007.[1]
Should that not be possible, the Department for Transport (DfT) in England (through DfT Operator), the Scottish Government (through Scottish Rail Holdings) for the ScotRail franchise in Scotland, and the Welsh Government for the Wales & Borders franchise in Wales, are required to step in as operator of last resort.