Actually they are because unlike shareholders who cares more about dividends then efficiency and service levels the government have stakeholders who care about efficiency and service levels.
This looks like an attempt to present a kind of Potemkin nationalisation to mollify the anger of people with £1k+ season tickets and cement their hold on voters drawn away from Starmer in the last election (who meekly dumped rail nationalisation as a policy).
This measure might be too little to really matter but the fact is that when you don't have an market(and for passenger rail you kind of don't) outsourcing operations to for-profit organisations provide nothing but a venue to funnel cash out of the system to private shareholders.
When there is an functioning market that is not tied to an government backed/guaranteed service it does make sense to subcontract work to private enterprise, but unless the government contracts represent a relatively minor portion of the subcontractors revenue and the subcontractor don't have more then say 20% market share, there is no functioning market, so all you end up with is an mercantilist structure of public risk and private profits if you still insist on pushing the task to private enterprise.
Shareholders aren't stupid enough to invest in something long term unless their investment will have a return. Companies invest when there is a long term profit from the investment that makes it worth it. With governments all over the world having a history of nationalizing railroads, there is no rail investment that can be made with a time-frame beyond 7 years - and rail is up front expensive enough you need a lot more than a 7 year time frame on most investments.
Most of the railroads in the US were funded by 150 year bonds. (your history class talked about the government giving railroads 10 miles of land on each side of the track - but that was only a few routes in the west that got that, most rail in the east the railroads had to buy the land at market price). I assume most of the rest of the world was similar.
I'm going to go out on a limb here, and guess you've never used the for-profit rail services of the UK then.
(I know this is quite snarky, but to elaborate, there is no incentive for the TOCs, because a operating a stretch of railway line doesn't have any competition. You don't need to be efficient or give good service because customers do not have an alternative choice of train they can use.)
It all moves in cycles, I could well imagine the same situation happening again in 20 years.
Oh wait you’re serious. Let me laugh even harder.
Efficiency leads to profits and thus dividends. The government cares more about politics than efficiency. Look the the problems southern have had because the government insisted on getting rid of guards - they effectively nationalised southern (GTR) years ago because they refused to let the private sector run it how they wanted.
Compare with chiltern who converted the Chiltern line from a service about to shut down under the government in the 80s to a leading toc massively increasing service and options
Back in the day, Chiltern had express peak-time services to Birmingham which were only marginally slower than Virgin's high speed trains. But Chiltern was much cheaper and would serve you a cooked breakfast and proper espresso coffee at your seat - in standard class!
The free market certainly provides benefits, but there needs to be some meaningful recourse to removing your custom while the provider depends on it. Otherwise, it's simply not a free market at all, no matter the circumstances that surrounded the bidding process.