What is really going on in politics? Get our daily email briefing straight to your inbox Sign up Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

BRITAIN’S only publicly-owned rail route is a runaway success, official figures reveal today.

The East Coast firm provides the best value for money for the taxpayer - returning a net surplus of £16m to the Government’s coffers.

South West Trains was the only private operator to provide a surplus - £5m.

The three top payers of dividends - Northern Rail, Transpennine Express and Virgin Trains paid out £97m to shareholders last year.

The figures come from an Office of Rail Regulation (ORR) report, which details the subsidy each train company receives and just how much they pay back in premiums to the Treasury.

Last night Labour, union leaders and campaigners said it was a compelling case for the East Coast staying out of private hands.

The Tory-led Coalition wants to privatise the line ahead of next year’s general election.

The report also showed that Government funding in 2012/13 varied from £2.19 per passenger journey in England to £7.60 in Scotland and £9.33 in Wales.

Total government funding for the railways last year amounted to £4 billion which represented 30.9% of the industry’s total income and included £700,000 from Transport Scotland and £100,000 from the Welsh Government.

Government funding decreased by 4.2% from 2011/12 and by 9.1% from 2010/11 as the burden of costs is switched from taxpayer to passenger.

Mary Creagh, Labour’s Shadow Transport Secreetary, said: “Today’s report shows that the publicly-owned East Coast company is highly efficient, returning more to taxpayers than it receives in funding.

“Yet David Cameron is obsessing about handing it back to the private sector. He should tackle his Government’s cost-of-living crisis and cap fare rises for struggling commuters.”

“Passengers and taxpayers are picking up the tab for this out-of-touch Government’s franchising fiasco with higher fares and more public subsidy.”

Frances O’Grady, TUC general secretary and chairwoman of Action for Rail group, said: “Today’s figures show just how dependent rail firms have become on the public purse.

“Taxpayers’ money that should be spent on improving services is instead being siphoned off into shareholders’ pockets.

“Rail franchising is failing both passengers and taxpayers. The Government’s determination to re-privatise the East Coast main line - even though it is delivering the biggest cash surplus of all - shows it has learnt nothing from past mistakes.”

Manuel Cortes, leader of the TSSA rail union, said: “The facts clearly support our argument that publicly-owned franchises like East Coast offer a much better deal than privately-run franchises like Virgin.

“The private railway has been a 20-year lesson in failure, paid for by both passengers and taxpayers.”

And Mick Cash, acting general secretary of the RMT union, said: “The corporate welfare on Britain’s railways continues unchecked with the scroungers from the private train companies fleecing the British people for mind-blowing sums of money.

“The case for bringing the whole rail network under public ownership, and ending the scandals of subsidy and revenue support, is absolutely overwhelming and it’s about time that the politicians of all parties took note.”

A Department for Transport spokesman said: “We recognise the positive impact the railways have on communities across the country.

“This is why we have embarked on one of the biggest programmes of modernisation ever, with more than £38 billion being spent to maintain and improve our network over the next five years.

“Subsidy and premium differ across the UK, even at a regional level, because of variations in demand and costs, with some busier services requiring less Government support.”

Michael Roberts, director general of industry body the Rail Delivery Group, said: “The ORR’s report shines a light on why Britain’s railway is such a big success story.

“An industry focused on attracting more passengers and freight, combined with a commitment by successive governments to invest over the long term, is generating phenomenal growth.

“This winning formula is helping to reduce unit costs while improving and expanding a vital public service.”