Rail industry leaders have warned against Jeremy Corbyn's plans to take lines back into public ownership while Ukip claimed the policy would breach European laws.

The Labour leader has pledged to create a "people's railway" that would renationalise services as franchises expired.

Mr Corbyn will set up a task force to look at how to implement the plans to reform the system line by line.

He told the Sunday Mirror: "We know there is overwhelming support from the British people for a people's railway, better and more efficient services, proper integration and fairer fares."

But the Rail Delivery Group, which represents Network Rail and train operators, indicated it would oppose the plans.

A spokesman said: "When rail franchising was introduced the railway ran at a £2bn a year loss in terms of its day to day costs but today, it virtually covers its running expenses.

"This phenomenal financial turnaround has happened because journeys have grown faster here than on many other European railways, resulting in almost six times more money being paid back by train operators to government for rail investment.

"The rail network is vitally important to every household in the country. While other countries have invested heavily in their railways, none has come close to matching the success of ours because they don't benefit from the winning combination of private sector competition and government funding."

Ukip branded the plans "off the rails" and insisted they could not happen if Britain remains part of the European Union.

The party's transport spokesman Jill Seymour said: "As long as we remain members of the European Union, Britain is simply not allowed to do this.

"Ever since the first railways directive back in 1998, the EU has dictated that all member states must provide competition and allow independent companies to apply for non-discriminatory track access.

"Mr Corbyn has only been in position for a week, but it is already clear that his policy ideas are off the rails."

Liberal Democrat leader Tim Farron said the state should be allowed to bid for rail franchises but ownership should not be a "dogmatic" issue.

He told Sky News' Murnaghan programme: "To my mind we shouldn't be doing what the current Government does, and that excludes the state from bidding for franchises. It is ludicrous that the French and the German state rail companies can bid for British rail franchises but the British state can't. That is daft.

"So certainly allowing more state intervention, where that is appropriate is right.

"But spending a whole lot of money on making something, perhaps, worse doesn't seem very sensible."

The old state-run British Rail "was hardly marvellous" and "not a wonderful provider of an excellent, cheap and timely service".