On 19 August campaigners will be protesting the fare rise at stations across the UK and calling for a publicly owned railway – to deliver a better deal for passengers and taxpayers. In Europe, publicly owned railways have lower fares, are more efficient, and profits are reinvested back into the service. Publicly owned East Coast Main Line is a success story, and in 2013/14 returned £216m to the UK Treasury.
For privatised rail services, it’s a different picture. We have the highest fares in Europe with profits extracted to pay shareholder dividends. In 2012/13 Northern Rail, Transpennine Express and Virgin alone paid almost £100m in dividends to shareholders after receiving over £1bn in public subsidy. Evidence shows that about £1bn per year is wasted due to privatisation, and if saved, this could fund an 18% cut in fares.
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