Industry 'improved finances' - a gentle reminder

This from Benjamin Disraeli...

According to the Rail Delivery Group Notes to Editors on today's launch of the 'Landmark coming together':

"The plan details the progress that the industry has made since it was restructured in the 1990s, when Britain’s railway ran a £2bn a year operating deficit (1997-98) compared to generating a £200m surplus today, benefiting taxpayers. The plan says that improved finances have helped to sustain improvements in the railway that see Britain’s network now ranked by passengers as the best major railway in Europe".

In 1997-98 all Government subsidy to the railway went to the train operators who then provided all Railtrack's income through track access charges. In other words, they met their full operating costs.

Today Network Rail's income comes from a combinatioon of track access charges and a direct grant from DfT.

According to the ORR, in 2016-17, only South West Trains and Virgin Trains East Coast made a net contribution to DfT after Network Rail's Direct Grant had been allocated to the TOCs. The rest ran an operating deficit requiring subsidy. 

And SWT was in revenue share, while VTEC is running at a loss…