Avanti West Coast services will be brought into public ownership next March, according to Transport Secretary Heidi Alexander.
Ministers said the nationalisation effort will coincide with infrastructure upgrades aimed at cutting delays and boosting the passenger experience.
Ms Alexander stated: "For years, we’ve heard stories of Avanti underperforming, with passengers left paying the price. Enough is enough.
"That is why we will bring Avanti into public ownership at the earliest opportunity, in March next year.
"This Labour Government is committed to putting essential services back in public hands, connecting people to opportunity and delivering growth in every postcode and this move reflects that commitment.
"We will also introduce a comprehensive improvement plan, focused on delivering for passengers, not shareholders."
Prime Minister Andy Burnham echoed her sentiment, saying in a statement, “Enough is enough.
“For years, people have been expected to put up with Avanti’s cancellations, delays, overcrowding, and a service that has failed them time and time again.
“So my Labour government is bringing Avanti West Coast into public ownership at the earliest opportunity in March next year.
“That means passengers, not shareholders, will come first.
“More investment, fewer delays, and a renewed focus on getting the basics right.
“We're putting essential services back in public hands and building a railway that actually works for the people who use it.”
The existing operating contract for Avanti West Coast is set to expire on March 7.
Andy Mellors, Managing Director at Avanti West Coast, said: “We’re proud of what we’ve achieved over the last six years - from refurbishing our Pendolino fleet and introducing our new Evero trains to running more services than ever before.
“Together, these improvements have given customers greater choice, more capacity and better connectivity, while we’ve continued to innovate to shape the future of the West Coast and wider rail industry.
“Over the coming months, we’ll work closely with the government to ensure a seamless transition into public ownership while remaining focused on delivering for our customers and communities.”
Avanti service cuts
In May, Avanti West Coast announced it was axing one in seven trains on some of the busiest summer routes following a government directive to reduce spending.
About 38 daily weekday services were removed from timetables for six weeks from 20 July.
The cuts affected key connections between London Euston and Birmingham, Liverpool, and Manchester along the West Coast Main Line, where the operator typically runs 248 daily services.
Avanti West Coast, a joint venture, said that it proposed targeting services with lower demand in response to a Department for Transport (DfT) request for cost reductions, a plan which received official approval.
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