The government is planning a "radical" overhaul of the structure of Britain's railway network, the transport minister has said.

In an interview with the FT, Kim Howells said the current system was rewarding failure.

"I think the whole structure at the moment needs changing," he said.

"It's a money-go-round and a bureaucracy which is crazy and we've got to get rid of all that."

He also indicated frustration at the power of rail regulator Tom Winsor to decide on the level of government funding for the railway network, describing it as the "maddest manifestation" of the current regime.