How markets work

Extract 1: Passenger rail journeys in Great Britain fell from 1.74 billion in 2019–20 to 0.39 billion in 2020–21 during the pandemic, then recovered to around 1.6 billion by 2023–24. The government took on most revenue risk from private train operating companies (TOCs) and paid them a management fee instead. Extract 2: Network Rail, a public body, owns and maintains the track, signals and most stations. TOCs compete for contracts to run services but on most routes there is only one operator. The government caps increases in regulated fares (about 45% of fares), often linking them to inflation. Extract 3: Supporters of public ownership argue it would end fragmentation, reduce profits paid to shareholders and allow track and trains to be planned together. Opponents warn that nationalised industries in the past suffered from under-investment, political interference and weak incentives to cut costs. The government plans to bring passenger services into public ownership as contracts expire.

Extract 1: The regulator Ofgem sets a price cap on standard variable energy tariffs. The cap for a typical household reached £3549 a year in October 2022, though the government's Energy Price Guarantee limited bills to £2500. By mid-2024 the cap had fallen to about £1690 as wholesale gas prices fell. Extract 2: More than 25 small suppliers went bust in 2021–22 because they had sold energy at fixed prices without buying it in advance. Their customers were moved to the remaining large suppliers. The market is now dominated by a handful of firms. Extract 3: Energy producers made record profits. The government introduced an Energy Profits Levy (a windfall tax) on oil and gas producers, while offering investment allowances for new production. Environmental groups argued that support should go to renewables and home insulation instead.