Some rail franchises should be scrapped and control of services handed over to city regions to help end “nightmare rail journeys”, according to a new report.

It comes as Andy Burnham, the mayor of Greater Manchester, called for operator Arriva to be stripped of its Northern franchise, claiming the privatisation of trains “has not worked and needs a shakeup”.

The latest report by the Campaign for Better Transport (CBT) has recommended a radical overhaul of the franchise system so more urban commuter services outside of London are devolved.

The pressure group’s report pointed to London Overground as evidence that more local contracts should be used for city-based train services “allowing rail to mesh with and respond to local objectives and needs”.

The CBT recommended a new, publicly funded arm’s length body to manage all aspects of rail planning in its “Future of Rail” report.

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The group also called for a major shake-up of the fares system to encourage initiatives such as a single national railcard, part-time season tickets and more pay as you go travel.

CBT chief executive Darren Shirley said passengers have “suffered unreliable, expensive, overcrowded trains for too long” as he urged the government to “seize its chance to put an end to nightmare rail journeys”.

The majority of rail services in Britain are operated under fixed-term franchises, which involve the DfT setting out specifications such as service levels, upgrades and performance. Train companies then submit bids to run franchises.

The CBT called for this system to be replaced by several models. Under the proposals, smaller packages of inter-city routes would be auctioned off to spark competition, while private sector operators in cities outside London would be incentivised to promote integrated transport and economic growth.

The report has been published ahead of the 2.7 per cent average increase in Britain’s rail fares which comes into force on Thursday.

Mayor of Greater Manchester Andy Burnham (Getty)

Mr Burnham welcomed the report and urged the government to take action ti improve services in the north of England.

“There is now consensus that the privatisation has not worked and needs a shakeup,” said the Greater Manchester mayor.

“The prime minister has set out his commitment to improve transport in the north – it is beyond time that the government stripped [Arriva] of the franchise and set a deadline for TransPennine Express to improve.”

TransPennine Express, which runs trains between central Manchester and cities including Liverpool, Sheffield, Leeds and Newcastle, apologised after four in 10 of its services were delayed or cancelled in the run-up to Christmas.

Some of the demands in the CBT report have previously been spoken about by Keith Williams, who is leading a government-commissioned review into Britain’s railways.

The Department for Transport (DfT) is expected to publish a white paper based on the review’s recommendations in the coming weeks.

A DfT spokesman said: “The government will shortly bring forward reforms from the Williams Review, the first root and branch review of the rail industry in a generation.