GERMAN COMPANY WANTS TO PITCH IN TO MAKE TRAINS RUN ON TIME – Siemens asks Reeves for a public-private partnership to upgrade rail routes
German industrial giant Siemens is urging the Labour Party to allow it to modernise underperforming rail routes as the Chancellor seeks cost-effective ways to upgrade the network.
Siemens has proposed overhauling signalling systems and electrifying diesel-only lines while guaranteeing train service levels on improved routes. The company is also lobbying Rachel Reeves to permit funding through public-private partnerships (PPPs), leveraging Siemens’ financial division to support projects. Under this model, Siemens would cover upfront costs and recoup them through fees or taxpayer charges.
The proposal aligns with Labour’s upcoming spending review, which aims for 5% efficiency savings across departments while prioritising projects that fit Sir Keir Starmer’s “plan for change.” Siemens claims its plans, to be submitted next month, would increase capacity and improve punctuality.
However, PPPs could stir controversy within Labour, given the legacy of the private finance initiative (PFI) model used under Tony Blair and Gordon Brown. While PFI was marketed as a quick solution for infrastructure needs, it has since been criticised for being costly and delivering subpar public services.
