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 on Monday, Kim Howells said the current system was rewarding failure.

An "absurd system" meant that train operators could benefit when their services were disrupted, he said.

"I think the whole structure at the moment needs changing," Howells added.

"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.

Winsor has angered ministers by insisting on setting the level of government funding for the railway network.

Howells said that power was the "maddest manifestation" of the current regime, removing the final say over public spending from elected ministers.