South Western Railway (SWR) will be the first UK train operator to be renationalised under the Labour government, ministers are expected to announce this week. The London Waterloo-based service, one of the country’s largest commuter networks, will return to public hands in May when its contract ends.

Currently a joint venture between First Group and Hong Kong’s MTR, SWR will come under the control of the Department for Transport’s operator of last resort (DOHL). This move follows the recent passage of the public ownership bill, which paves the way for all train operators to eventually be nationalised.

SWR’s renationalisation marks a more cautious approach to the timeline than initially suggested by Labour’s former transport secretary Louise Haigh, who resigned last week. Under Haigh’s leadership, the possibility of early break clauses for other contracts, such as Greater Anglia, had been considered.

The decision follows a period of financial strain for SWR, which reported an operating profit of £12.2m last year, bolstered by a £140.9m subsidy from the Department for Transport. Despite a profitable history, the pandemic severely impacted commuter numbers and season ticket sales.

Other operators like LNER, Northern, and Southeastern have already been brought under public control in recent years.