Image copyright Getty Images

A review of the rail industry is to be launched by the government next week, following criticism of the way the franchising model is run.

Labour said the model was "broken", after the East Coast Mainline franchise failed for the third time and passengers on other lines faced strikes and disruption to new timetables.

The party says it will renationalise the railways if it gets into power.

But the government says privatisation has helped "transform" the industry.

The UK's rail network has been beset by problems, with the East Coast Mainline brought back under government control in May - for the third time in a decade.

Meanwhile, members of the RMT union are holding the latest in a series of 24-hour strikes on Northern and South Western in a long-running dispute over the role of guards on trains.

Hundreds of rail services are likely to be cancelled and replacement buses will operate on some routes.

'Long-suffering passengers'

The review, to be announced on Thursday, is expected to be led by Keith Williams, the deputy chairman of department store John Lewis.

It is likely to examine how issues such as those faced by the East Coast Mainline can be avoided in the future. The franchise was a joint venture between Stagecoach and Virgin Trains.

This week the Transport Select Committee described the bid to run the line as "naive" and said the DfT must take the blame for not managing it effectively.

The DfT plans to run the service as the London North Eastern Railway until a new public-private partnership can be appointed in 2020.

The government first began to offer Britain's passenger train services to the private sector to run on a franchised basis in the 1990s.

Image copyright Getty Images Image caption The East Coast Mainline service run by Virgin was taken back under government control

Transport secretary Chris Grayling has also faced questions over his handling of the disruption faced by passengers on services run by Govia Thameslink and Northern this year, following the introduction of new timetables.

The Office of Rail and Road has launched an inquiry into the problems.

Labour has said it would bring the railways back under public ownership if it was in power.

Shadow Transport Secretary Andy McDonald said: "Long-suffering rail passengers don't need a review to explain to them that the franchising system is broken beyond repair.

"No amount of tinkering will change the fact that rail franchising has failed, does not deliver and never will."

A Department for Transport spokesperson said: "Privatisation has helped transform our railway, doubling passenger numbers and delivering more services, extra investment and new trains.

"We are absolutely committed to improving journeys and are always examining ways to improve how the railway serves passengers."

Paul Plummer, chief executive of the Rail Delivery Group which represents the rail industry, said the public and private sectors had achieved a lot working together over the last 20 years but "the time is right for root and branch reform".</s>A major review of Britain's railways is to be launched in coming days, reports suggest, following criticism of the franchising system.

Transport Secretary Chris Grayling is said to be preparing for an announcement to be made on Thursday.

The BBC has suggested the review could look at how issues such as those faced by the East Coast Mainline can be avoided in the future.

It will focus on the “balance of public and private sector involvement” in the future, the Sun newspaper reports, and how to restore faith in privatisation, designed to see off growing calls for the trains to be re-nationalised.

The Transport Secretary has hired John Lewis boss Keith Williams to lead a 12 month “root and branch” inquiry into the franchise system to “rebuild public trust” in the network, it adds.

A spokesman for the Department for Transport, when approached by The Yorkshire Post, said: “Privatisation has helped transform our railway – doubling passenger numbers and delivering more services, extra investment and new trains.

“We are absolutely committed to improving journeys and are always examining ways to improve how the railway serves passengers.”

It comes as rail services on two operators faced disruption today because of a fresh strike in the long-running dispute over guards on trains.

Members of the Rail, Maritime and Transport union (RMT) on South Western Railway (SWR) and Arriva Rail North (Northern) walked out for 24 hours.

Hundreds of services were cancelled and buses replaced trains on some routes.

The RMT said its members mounted picket lines outside stations and were solidly supporting the action.

Reports of a review into rail franchising are a "blatant and desperate effort to kick the continuing chaos on Britain's railways into the long grass," the union added.

General secretary Mick Cash said: "It won't work as it's clearly a desperate stunt by a Government clutching at straws which is ideologically opposed to the British people owning and running their railways.

"The only solution to the current rail franchise shambles is an end to private greed and a return to public ownership."</s>A comprehensive review of the rail industry is being launched by the Government next week, at a time when services have been plunged into chaos, infuriating long suffering passengers. And there was no let up today, hundreds of services on South Western railway and Arriva Rail North were cancelled or disrupted as members of the RMT union walked out in their long running dispute over guards.</s>A review of the rail industry is to be launched by the government next week, following criticism of the way the franchising model is run.

Labour says the model is "broken", after the East Coast Mainline franchise failed for the third time and passengers on other lines faced strikes and disruption to new timetables.

The party says it will renationalise the railways if it gets into power.

But the government says privatisation has helped "transform" the industry.

The UK's rail network has been beset by problems, with the East Coast Mainline brought back under government control in May after the franchise failed for the third time in a decade.

Meanwhile members of the RMT union are holding the latest in a series of 24-hour strikes on Northern and South Western in a long-running dispute over the role of guards on trains.

Hundreds of rail services are likely to be cancelled and replacement buses will operate on some routes.

The government first began to offer Britain's passenger train services to the private sector to run on a franchised basis in the 1990s.

The review to be announced on Thursday is thought likely to examine how issues such those faced by the East Coast Mainline can be avoided in the future. The franchise was a joint venture between Stagecoach and Virgin Trains.

This week the Transport Select Committee described the bid to run the line as "naive" and said the DfT must take the blame for not managing it effectively.

Transport secretary Chris Grayling has also faced questions over his handling of the disruption faced by passengers on Thameslink and Great Northern trains this year following the introduction of new timetables by owner Govia Thameslink. The Office of Rail and Road has launched an inquiry into the chaos.

A Department for Transport spokesperson said: "Privatisation has helped transform our railway, doubling passenger numbers and delivering more services, extra investment and new trains.

"We are absolutely committed to improving journeys and are always examining ways to improve how the railway serves passengers."

Labour has said the franchise model is broken and it it was in power it would bring the railways back under public ownership.

Shadow Transport Secretary Andy McDonald said: "Long-suffering rail passengers don't need a review to explain to them that the franchising system is broken beyond repair.

"No amount of tinkering will change the fact that rail franchising has failed, does not deliver and never will."</s>Property Franchise Group (LON:TPFG) posted its quarterly earnings data on Tuesday. The company reported GBX 5.90 ($0.08) earnings per share for the quarter, Digital Look Earnings reports. Property Franchise Group had a return on equity of 29.91% and a net margin of 39.97%.

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The government of the United Kingdom announces that a review will be introduced Thursday of the rail franchise system amid criticism of its efficacy.