Watchdog urges longer rail leases

The market for trains is dominated by just three rolling stock companies

Train operators should get longer franchises so they can invest more in new carriages, a report by the Competition Commission has suggested.

Extending them from seven to 12 years would allow firms to recover the costs of switching to new trains, it said.

The watchdog also said firms are not given enough choice of train providers.

The Department for Transport said the price of some older rolling stock was set too high and it would carefully consider the recommendations.

Longer franchises would give operators more power to dictate where their trains come from, helping improve the rolling stock fleet across the railways, the watchdog said.

Just three companies dominate the market, providing most of the rolling stock on the network.

Train companies lease their trains because they only have the right to run services for an average seven years.

As a result the number of trains has only increased by 3% in 12 years while the number of journeys has gone up by 60%, the report said.

In most cases new trains have replaced aging rolling stock, although the government is currently ordering more than 1,000 new carriages.

A Department for Transport spokesman said: "Prices for some older rolling stock are set too high, which means there is less to spend on delivering improvements for passengers.

"We will consider the recommendations on franchising carefully."