We were interested to hear the Department’s views on the main issues caused by the rail system’s current structural organisation. The Department recognised that problems have emerged over a number of years, partly the result of poor alignment between Network Rail, responsible for rail infrastructure, and operators, responsible for delivering passenger services. The Department highlighted issues around missed opportunities to collaborate and a lack of strategic direction and accountability for the industry. It also told us that these issues have led to poor performance and reliability, insufficient capacity to meet demand and an increasingly expensive railway, all of which have consequences for taxpayers and fare payers.23 The Department also recognised that the COVID-19 pandemic has brought significant additional challenge for the rail sector. Passenger revenues, which according to a National Audit Office analysis provided 80% of rail system earned income in 2019–20, have dramatically reduced.24