The transport secretary yesterday set in train plans for a significant shake-up of the UK's rail network.

The move, which aims to ensure better control of escalating costs, was welcomed by the industry.

Shadow transport secretary Theresa May said: "After nearly seven years of a Labour government that promised improvements in twelve months, passengers are seeing no improvement on the railways and for many services are getting worse.

"Now all the government can offer passengers is months of uncertainty followed by yet more change and increased bureaucracy. With the ten year transport plan in shreds, and government failing to deliver any improvement for passengers their answer is more centralisation and political interference.

"Don't they understand that what the railways need is the chance get on with the job of delivering better services for passengers? That means real improvements not just fiddling the timetable."

Transport spokesman John Thurso said: "The railways are clearly hopelessly overregulated. Alistair Darling has finally admitted the problems. But the question is now whether he has got the courage to solve them.

"It must be the job of the government to outline the strategy for the future, and the job of the industry to deliver it. Putting hundreds of bureaucrats between the strategy and the delivery simply doesn't work."

Forum Response: Transport and Salaried Staffs Association

Richard Rosser, general secretary of the TSSA, said: "The announcement is welcome recognition that the structure and organisation of the rail industry must change.

"The top priority must be delivering rail services that meet the needs of passengers, not the interests of private companies.

"This review must not repeat the mistakes of privatisation, which fragmented the railway beyond all sense. This is a national rail network and we needone person in overall control, making decisions in the interests of the entire network.

"The chain of command in government demands there is somebody in overall charge. The railway needs exactly the same thing. One person, leading oneorganisation, ensuring the whole industry works together for the benefit of passengers.

"Alistair Darling is right that the government must determine the priorities, but not run the service. At the moment when you ask who is in charge of day-to-day operations on the railway, there is no clear answer. This review must change that."This review is Labour's chance to change things for the better and sort the structure of the industry out once and for all."

Forum Response: Association of Train Operating Companies

George Muir, director general of the Association of Train Operating Companies, said: "We are glad to see that the government recognises the contribution that the train operating companies have made to improve Britain's railway, bringing new investment, technology and innovation to help change rail travel for the better.

"We are ready to work with the government in their review. Punctuality is key for passengers and train operating companies will go out of their way to help,

"Meanwhile, we must all continue to focus on our day jobs - carrying more than 2 million people a day across the rail network."