Trainline and Firstgroup shares fell this morning after Labour pledged to renationalise Britain’s railway network within a first term.
Trainline was down nearly 10 per cent by early afternoon, while Firstgroup dipped over two per cent, although it had initially fallen around eight on the news.
Labour unveiled its ambitious plans this morning, which would bring each private train operator under state control when their contracts expire. The decision likely means the end of decades of privatisation, which began under the John Major government in the 1990s.
Firstgroup, which runs Avanti West Coast, Great Western and South Western, has previously warned Labour poses a “risk” to its business.
Part of the proposals involve changes to rail ticketing in the UK. Investors in Trainline fear any modernisation of the UK’s vastly complex ticketing system could dampen demand for its service.
In a speech at Trainline’s HQ in central London, Shadow Transport Secretary Louise Haigh, said: “I can’t today set out that we will lower fares, not least because they are incredibly complex and regulation needs reform as well.
“But we have said that we will simplify them, that we will make them more accessible, more transparent and more trustworthy for passengers.”
She also promised there would be “no plans to close ticket offices”.
Shares in both Firstgroup and Trainline have performed well over the last 12 months. Trainline, which posted £5.3bn in ticket sales in its full-year results, is up over 22 per cent.
Firstgroup is up over 50 per cent, well ahead of its rival Mobico, the owner of National Express.
Firstgroup’s fall may have been tempered by Labour plans to back the roll-out of more open access providers.
The transport giant owns Hull and Lumo trains, which operates using the model and has propped up Firstgroup’s performance over the last year.
