According to the Sunday Times , today's privatised railway costs taxpayers five times more to keep services running than it did 17 years ago under British Rail (link below.)
http://www.rmtbristol.org.uk/2007/01/the_runaway_privatised_train_o.html#more

"Big decisions will be taken over the next two years, as the government and regulators decide how much Network Rail will have to spend over the five years from 2008. The government wants to cut subsidies — to about £3.5 billion a year, according to some reports — while Network Rail says investment to increase capacity could cost between £5 billion and £8 billion more. If any these schemes are to see the light of day, the industry will either have to economise greatly — or fares will have to continue to rise."