Hurrah! Even as a free market conservative I've long been in favour of this: bidding for the multi-year contract to operate a line is a poor proxy for (impossible) proper competition where rail users could vote with their feet and wallets. There's effectively only one operator anyway, for a given journey, it should be the state, awarding the multi-year contract to the elected government is strictly better than to a p…
Capacity is physically constrained, especially on an ancient network like the UK's.
Timetable slots are scarce and have to be centrally coordinated and managed.
There is no sparkly market magic that will make these constraints disappear and somehow give customers more choice about where to go, when, and with whom. And there is no chance whatsoever that operators can compete on price.
The only way to lower prices is nationalise the entire industry and replace privatisation with direct investment, on the basis that transport infrastructure is a social cost with significant indirect benefits, and cannot possibly be run as a self-sustaining profitable business on a national scale.
The idea that competition for passengers will somehow make profitability possible is a dilettante-level view that has no insight into how the industry actually operates.
We've already had decades of this kind of thinking, and the result has been mediocre services, vastly increased direct subsidies, and ballooning fares.