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An illusion of success: The consequences of British rail privatisation

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  • Bowman, Andrew

Abstract

This article accounts for the British experiment with rail privatisation and how it has worked out economically and politically. The focus is not simply on profitability and public subsidy, but on the appearances which accounting arrangements create. The article scrutinises the Network Rail subsidy regime, which enables train operators to achieve fictitious profitability without increased direct state support. This enables supporters of privatisation to claim train operators produce a net gain for the British taxpayer. The claim forms the heart of a trade narrative which is employed by the industry and their political backers to deflect criticism and stymy reform.

Suggested Citation

  • Bowman, Andrew, 2015. "An illusion of success: The consequences of British rail privatisation," Accounting forum, Elsevier, vol. 39(1), pages 51-63.
    • Handle: RePEc:eee:accfor:v:39:y:2015:i:1:p:51-63
    DOI: 10.1016/j.accfor.2014.10.001
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    References listed on IDEAS

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    1. John Stittle, 2002. "Regulatory Control of the Track Access Charges of Railtrack plc," Public Money & Management, Taylor & Francis Journals, vol. 22(1), pages 49-54, January.
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    5. Jean Shaoul, 2006. "The Cost of Operating Britain's Privatized Railways," Public Money & Management, Taylor & Francis Journals, vol. 26(3), pages 151-158, June.
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    7. Gourvish, Terry, 2002. "British Rail 1974-1997: From Integration to Privatisation," OUP Catalogue, Oxford University Press, number 9780199250059, Decembrie.
    8. Jupe, Robert, 2009. "A “fresh start” or the “worst of all worlds”? A critical financial analysis of the performance and regulation of Network Rail in Britain’s privatised railway system," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(2), pages 175-204.
    9. Sean McCartney & John Stittle, 2011. "‘Carry on up the east coast’— a case study in railway franchising," Public Money & Management, Taylor & Francis Journals, vol. 31(2), pages 123-130, March.
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    Cited by:

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    2. Jurikovič Martin & Tomeš Zdeněk, 2017. "Public and Private Provision of Railway Services: A Case Study from Slovakia," Review of Network Economics, De Gruyter, vol. 16(2), pages 187-201, June.
    3. McCartney, S. & Stittle, J., 2017. "‘A Very Costly Industry’: The cost of Britain’s privatised railway," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 49(C), pages 1-17.
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    5. Król, Marcin & Taczanowski, Jakub & Kołoś, Arkadiusz, 2018. "The rise and fall of Interregio. Extensive open-access passenger rail competition in Poland," Research in Transportation Economics, Elsevier, vol. 72(C), pages 37-48.

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