Transport chiefs could block Mayor’s bid to run suburban rail network

Boris Johnson's bid to take full control of London’s suburban train services could be derailed by the Coalition, the Standard understands.

In what would be a major defeat for the Mayor, it has emerged that senior government figures are sceptical about his plans. Mr Johnson wants control over rail franchises so that he can lower fares and allow the Oyster scheme to be used on the whole network.

But officials in the Department for Transport could block the moves over fears that the Mayor might favour London residents over commuters travelling into the capital.

New Transport Secretary Patrick McLoughlin yesterday announced a working group giving Mr Johnson a formal voice on the suburban railways. A City Hall source today insisted the Mayor was “confident” this would not be a substitute for rail devolution.

But sources have told the Standard that the chances of the Government awarding him control of the franchises are diminishing. This would leave Mr Johnson unable to make reforms that he pledged in his manifesto before winning a second term in City Hall.

The Mayor says that by taking control of the awarding of just two franchises, £100 million could be saved over 20 years. He eventually wants to control all suburban railways and introduce a one-ticket system across Greater London. At present rail services are provided by several companies under franchise agreements with the Government. Former transport secretary Justine Greening was said to be positive about Mr Johnson’s call to devolve powers over railways, but he could now face a battle to get his way.

Transport minister Norman Baker said: “I understand why some people in London might want greater power over heavy rail and it might make sense for London. But the network is shared by heavy trains from further afield. People outside London might be disadvantaged by [that] solution.”

But the Mayor’s spokesman said the Overground had seen a growth in passenger numbers and satisfaction since it was taken over by Transport for London and there was “major room for improvement” on suburban railways.

The spokesman added: “This was a major plank of the Mayor’s election campaign, was hugely popular in outer London in particular, and it remains a top priority for the Mayor.”