£2bn profit for Network Rail despite drop in punctuality

Network Rail made higher profits of more than £2 billion last year, even though fewer trains ran on time.

The profits - equivalent to £5.5 million a day - also come as passengers bore the burden of above-inflation rises in fares, with London commuters among the worst hit.

The company, which is responsible for track, signalling and major London stations, paid £5.4 million to its top six bosses.

Only 90.9 per cent of trains ran on time last year - down from 91.5 per cent in 12 months, although this was partly due to the exceptionally bad weather before Christmas.

The company is not directly responsible for running trains or setting fares but charges rail operators to use its tracks, one of the biggest costs for train firms.

Last year many commuters had to put up with double-digit price rises on tickets with, for example, the cost of a season ticket from Kent to London soaring by more than 12 per cent in January and an annual pass from Orpington to the capital now costing £1,632.

Ticket prices next January are expected to rise by as much as 14 per cent again. Network Rail said its operating profits rose from £1.98 billion to £2.02 billion, while its pre-tax profit rise 11 per cent to £313 million.

Meanwhile, the company's spending on tracks and other infrastructure was almost the same as the previous year at £3.99 billion. It culled more than 1,500 employees to save costs, reducing its staff numbers to 35,600.