The UK Parliament has approved a bill proposed by the new Labour government to bring most of the country's privately owned rail services back into public ownership.

Announced on Wednesday, the legislation allows for the transition when current private contracts expire or sooner if mismanaged, under the management of 'Great British Railways'.

The bill's passage marks a significant victory for Labour, which recently won the July 4 elections, ending 14 years in opposition by unseating the Conservatives.

The party campaigned on promises to improve the transportation system.

The TSSA rail union celebrated the bill as a 'landmark' achievement.

An attempt by the Conservative opposition to amend the proposal was narrowly defeated in the House of Lords by 213 to 210 votes.

The government won't owe compensation to existing rail operators, as their contracts are due to lapse by 2027.

Rail privatization initially started in the mid-1990s during John Major's Conservative administration, although the network itself remained state-run by Network Rail.

While four of England's 14 operators have returned to state control due to poor performance, this was originally intended as temporary.

However, the newly approved legislation represents a move towards permanent public ownership.

In Scotland and Wales, main rail operators are already state-run, managed by devolved governments in Edinburgh and Cardiff.

Recently, the British rail network has been plagued by strikes over wages and working conditions amid a cost-of-living crisis, leading to frequent train cancellations and widespread passenger dissatisfaction over high ticket prices.