A government-commissioned report has backed Network Rail’s proposal to allow for more private investment in British railways.

The new investment plans would see the privatisation of 18 key train stations and power lines, and comes amid criticism of the publicly-owned Network Rail for overrunning costs on a £38.5bn, five-year investment programme.

Nicola Shaw, CEO of High Speed 1 and one of the authors of the report, declared there was “no silver bullet” for Britain’s railways, as the government continues its pursuit of austerity measures announced in yesterday’s budget.

Network Rail wants to devolve power to its nine regional route managers, a decision Ms Shaw supports. The regions should be “empowered to find local sources of funding and financing, including from those such as local businesses or housing developers, who stand to benefit from new or additional rail capacity”, she explained.

The new privatisation plans will mark the third radical overhaul of the British rail system.

Manuel Cortes, of the TSSA union, criticised the report stating that “selling stations is short-sighted as we are foregoing long-term future retail rental income for a quick buck. Selling-off Network Rail’s electric grid means we keep a railway without having control over its strategic power network. You wouldn’t run a child’s train set like that”.

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