Is Labour getting ready to renationalise the railways – and scrap HS2?

Some within the party feared that Maria Eagle being moved away from the Shadow Transport role in the recent reshuffle (job-swapping with Mary Creagh) might have signalled the end of Labour’s consideration of railway renationalisation. But today Creagh, in an interview with the FT, Creagh has indicated that for Labour renationalising the railways is not off the table yet. The FT reports:

“Mary Creagh, who took the job last month, said she would launch a review of the party’s railway policy within a year. Asked by the Financial Times whether the review would include nationalisation of the entire system, she said: “We’re open to ideas. We don’t rule anything out.””

That’s not a significant shift from the position Eagle was taking whilst she was in the job – especially with regards to East Coast, which Labour wants to see stay in public ownership (perhaps as a staging post to renationalising more of the network). I’ve already written about Labour’s window of opportunity for denationalisation, as many of the franchises come up for renewal in the next parliament. If Labour does take such an approach it would be popular with the public – who think the services would be both cheaper and better run if they were back under public ownership.

Meanwhile – the Sun(£) reports today that Ed Balls will be given the final say over HS2. Balls has said that the party will keep the cost of the project under constant review, but it’s certainly possible that we might see Labour withdraw support for HS2, and favour splitting the money between other line upgrades and – perhaps – house building. Creagh though still seems keen on the idea – calling it “Labour’s idea” in her FT interview today.

Does this remind anyone of Labour’s “5 economic tests for the Euro?” – I’m increasingly beginning to think HS2 will never be built under a Labour government…