A PICTURE of chaos and underfunding on Britain’s privatised rail network has emerged in a damning report from MPs published today.

While cash is being showered on services in London, outside the capital billions of pounds are being drained from the network to fill shareholders’ pockets, with local and regional rail services condemned to “second class” categories the report says “cannot be allowed to continue.”

The Rail Maritime and Transport union (RMT) said the only answer is the dumping of the “millstone of private greed” from the industry.

The Commons transport committee has been investigating funding arrangements for the rail network in 2015.

Its report, released today, reveals that cash is being pumped into London’s rail infrastructure to the tune of £2,500 a head, while in the hard-pressed north-east the figure is a paltry £5 a head.

The MPs said ministers must “ensure that there is a fairer allocation of funding” for services outside London.

Committee chairwoman Louise Ellman, Labour MP for Liverpool Riverside, said: “Far less money is spent on transport projects outside London than in the capital. This inequality has gone on for too long and has to change.”

She said competition “will not necessarily help regions get a fairer share of transport funding and could make the situation worse.”

Ms Ellman added that the government’s focus on using competition to bring in private funding for projects “could disadvantage the regions, where there tends to be less private-sector money available compared with London.”

RMT acting general secretary Mick Cash said: “The biggest block to the massive investment that our transport services are crying out for is the continuing impact of privatisation which not only drains billions of pounds away in shareholder profits but also fragments and divides the industry, making planning and co-operation a nightmare.

“Until the millstone of private greed is lifted from our necks our industry will never be able to deliver what the public clearly want — cohesive, safe and modern transport services run in the public interest, not for the benefit of spivs and speculators looking for a fast buck.”