An illusion of success: The consequences of British rail privatisation

Abstract

Highlights• The article challenges narratives of the success of UK rail privatisation using accounting data from Network Rail and private train operating companies.• Large government subsidies channelled through Network Rail have radically changed the appearance of railway finances.• Lower track access charges levied by Network Rail have artificially inflated train operator profits, generating returns for the taxpayer and the illusion of financial self-sufficiency.• This accounting fix has bolstered claims that rail privatisation has been a financial success.