Network Rail has announced that it expects to meet government targets for reducing costs by approximately 25 per cent by 2014.
The cuts will mean the infrastructure owner will need to take on more debt in the coming years in order that a number of major projects may be completed.
Although revenues for the year to March 31 increased to £6 billion, an increase of 5 per cent, and profits increased by 7 per cent to £754 million, an increase in capital expenditure of £4.6 billion has seen debt increase by £2 billion to £27.3 billion. A trend likely to continue for at least the next two years.
A number of efficiency  measures have seen Network Rail’s operational costs fall by 5 per cent to £2.3 billion.
