Can't comment on the rail as I don't know enough about it.
The idea was that rail franchises are running out so just transfer the lines to Government control. If they make money then great. If they don't then now we have a major potential asset to play with.
We already pay for upkeep and improvement on the infrastructure. Labour wanted to cap peak fares and introduce free WiFi on all long hauls. If it gets people to work less stressed then it's a productivity rise too.
Seems win win to me. It works, we make money. It fails we sell it having upgraded minimums and we make money or we franchise it out again to make money. Good idea for all concerned.