The Great Train Robbery Report that came out recently has claimed that rail privatization is completely dependent on public subsidies and has improved service a little.

The study said that rail privatization was failing taxpayers. Europe has the most expensive fares in the UK. It has been found that old, dilapidated trains had serious overcrowding in the region.

The study was conducted by the Centre for Research on Social-Cultural Change (CRESC), which further said that shareholders were receiving almost 90% of profits. When it comes to re-investment into the railways, it was too little.

Between 2007 and 2011, operating profits of £504 million were made by train companies. The report found in the meantime that the average train age had also increased to 18 years old from 16 years in 1996.

The new investment realized in recent years was financed by Network Rail by more than 90%. Also, the same was mainly contributed by government-underwritten borrowing or taxpayer funding.

It is being said that the rail reform agenda of the government has been usurped by privately-owned train operating firms.

"It would make sense to abolish the train operating companies and it would cost the taxpayer nothing if it were done as the franchises expired", said Professor Karel Williams, CRESC director.