UPDATE 1-Britain nationalises Northern Rail after years of disruption

Britain said it would nationalise Northern Rail after the company delivering train links between cities like Manchester and Leeds was blamed for years of delays, cancellations and strikes on the service.

Britain privatised its rail services in the 1990s, but in recent years problems with rail contracts have led to renationalisations, and Transport Minister Grant Shapps said the current model was struggling and needed to change. The government is due to announce the findings of a review of the country's rail system shortly which will change the way contracts operate.

As a result of poor performance on Northern, Shapps said that a public-sector operator would take over its running from March 1, axeing a contract with Arriva, owned by Germany's Deutsche Bahn, five years early. Passengers on Northern Rail have had to endure years of problems, with high levels of delays and cancellations due to strikes, driver shortages, timetable issues, plus delays on the delivery of new trains, and old, creaking infrastructure.

Commuters would now see an improvement, promised Shapps, adding that the whole sector was due a shake-up. "It is clear that the current model is now struggling to deliver...We know change is needed, and it is coming," he said, referring to the Williams review.

That review into the rail network, led by former British Airways chief executive Keith Williams, is expected to be published in weeks. It will aim to overhaul a system beset with problems, from contracts in financial difficulty, to strikes and delays. Northern's nationalisation follows that of the London to Edinburgh route, known as the East Coast Mainline, in 2018, and more could follow. Another franchise, South Western, operated by British transport company FirstGroup and Hong Kong-based MTR Corp, is also in financial difficulty.

Under the current rail franchising system, the contracts fail when the companies are unable to meet the financial commitments they made at the outset. The model has been attacked by passengers, unions and politicians, who have said it results in expensive, overcrowded and unreliable services. Arriva won the Northern franchise, which mainly provides commuter services in the north of England between Liverpool in the west and Hull in the east, in 2015, and the contract had been due to run until 2025.