The amount of subsidy paid to train operators has dropped from operators receiving 拢1.4 billion in 2001/02 to the rail firms paying government 拢256 million in 2012/13.
This was caused by an extra 拢3.2 billion in passenger revenue generated by train operators, 96 per cent of which has come from passenger growth and four per cent resulting from fare changes. Journeys per head of population have risen significantly from 14.9 in 1997-98 to 22.4 in 2010-11. Virgin, which links the West Midlands to London and the north west, was the busiest service travelling a total of 5.96 billion passenger kms throughout the network in 2012/13.
The extra revenue being generated through passenger growth, combined with a more efficient Network Rail, has contributed to a drop in Government support for the day-to-day running of the rail network from 拢3.8 billion in 2011-12 to 拢3.5 billion in 2012-13.
However, Birmingham-based London Midland still received a grant of 拢57.3 million for 2012/13, but subsidies per passenger km dropped from 7.3p in 2008/09 to just 2.6p in 2012/13.
Michael Roberts, chief executive of the Association of Train Operating Companies, said: 鈥淲hile significant amounts are still being invested in rail infrastructure, for the first time, train operators taken together are returning more money to government than they receive. This means that taxpayers are over 拢1.6 billion better off than 11 years ago 鈥 equivalent to 拢62 for every household in Britain.鈥
Between 1997/98 and 2011-12 passenger revenue grew from 拢4 billion to 拢7.2 billion. Over the same period, the average price paid per passenger mile increased by four per cent from 19.6p to 20.4p.
Meanwhile, taxpayers would save 拢1.2 billion a year if the railways were brought back into public ownership, a report by union Unite claimed.
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