FirstGroup has stepped up its campaign to launch more open access rail services with research challenging the government’s plan to exclude private train companies from the renationalised network.

Two studies reveal that its rail operators Lumo – which operates low-cost trains between Edinburgh and London – and Hull Trains benefit customers, the rail industry and contribute to wider UK economic growth.

Open access operators do not receive any government funding, with all their revenue self-driven. They typically operate in under-served places.

The two studies were published as the Government sets out its consultation on the formation of Great British Railways. Transport Secretary Heidi Alexander has indicated to the rail regulator that she does not favour granting more open access licences as she believes they are denying revenue from a nationalised railway.

FirstGroup has recently led the argument on how open access supports a growing railway and last year committed to around £500m for 14 new British-built trains from Hitachi Rail’s Newton Aycliffe factory to run on open access routes from late 2027. Another £460m could be invested in 13 more trains if additional open access routes are approved.

The first new study on open access, “The Impact of Open Access Operators on Industry Revenue and Journeys”, was compiled by specialist consultants Winder Phillips. It assesses the success of open access operations on the increased number of journeys and the amount of additional revenue they have generated.

Operators such as Lumo and Hull Trains are independently regulated by the Office of Rail and Road (ORR) to ensure they do not impact other major operators on a route.

The new study focuses specifically on Lumo and Hull Trains operations, but also considers the positive effects of the Grand Central service to Sunderland, using publicly available industry data.

Faster rail journey times, direct journey opportunities, increased service frequency and fare competition are all mentioned as key benefits – all of which support economic growth in regions along the route.

The analysis found Lumo has helped to generate more than six million new rail journeys, encouraging people to switch from air travel to rail. Hull Trains has seen passenger journey growth of 42% since 2018/19, 25% more than any other UK rail operator. FirstGroup plans to launch additional services between London and Stirling, London and Devon and to Manchester. 

The second report, compiled by engineering consultants Arup titled “Open Access Operations Paying Their Way”, details the contributions made to the UK rail sector through the payment of industry charges.

Open access trains do not pay the same charges as those contracts managed by the Department for Transport, but have a different charging regime in place. Data shows that in 2025/26, Lumo will pay around 10% more than LNER per train mile and around 35% more than Avanti West Coast.

It also considers how open access operators are connecting communities, increasing job opportunities and reducing carbon emissions, driving even more economic growth.

Martijn Gilbert, managing director of FirstGroup’s Open Access operations, said: “These studies clearly demonstrate how open access operators are paying their way, generating passenger journeys and revenue. They do it while supporting economic growth for the UK as a whole and the regions they serve.

“We have a proven track record of finding and reliably operating in gaps in existing timetables, efficiently using spare capacity in the network between services including peak time commuter and freight trains, and which doesn’t increase the fixed costs of the railway or place any additional burden on taxpayers.

“As the Railways Bill Consultation is issued, it is important that this well-loved part of the railway can continue to operate and grow alongside Great British Railways.

“With our applications to expand, Lumo and Hull Trains are able to deliver further economic growth quickly, playing an important part in a successful railway for the benefit of all rail users and the communities we serve.”