BR survived because of the staff, that I have no doubt about. In the end, the staff were pulling out daily miracles to have the service run. Thatchers government at the time was hell bent on privatisation but just missed out. The Tories then, quite unexpectedly, won another term. The writing was then on the wall for BR. After chronic under funding for years and years, we are lucky to still have a railway network.
Private companies did not cause a resurgence for the railways, that happened due to several things including a booming economy and chock o' block roads. All they have done is get very rich without actually doing much. Let's face it, if I had the funds and the go-ahead, I could lease a trainset and some on train staff, send it out each day to make money, bring it back in and service it for tomorrow. A very simplistic view I know, but this is actually what they do. Take the Sleeper contract. Serco won this with a tonne of fancy promises, but all they boil down to is an outsourcing of just about everything to other companies. Maintenance, hospitality, food & drink etc etc are all being farmed out to what they call 'our industry partners'. Serco take all the plaudits, but are in fact running the service with other sub contractors who are possibly paying a lot less to the staff than the going rate, although this of course, is pure speculation on my part.
This is business, pure and simple. Make money for everybody involved, especially the fat cats who broker the deals in the first place. The rich get richer and the Tories keep all their wealthy mates swelling the party funds to keep them in.
It absolutely stinks!
Thatcher was hostile to the idea of rail privatisation because it didn't stand on its own two feet without a subsidy, so would amount to government subsidising private companies to run it.
It was the idiots Major and Heseltine who privatised it.
Thatcher rejected Serpell and gave stable, if parsimonious, funding to the railways in five year plans, ending previous governments chaotic practice of varying funding year to year with little notice and authorised a hell of a lot of investment (East Coast Main Line, Southampton/Eastleigh-Portsmouth, Oxted-East Grinstead electrification; total renewal of provincial rolling stock etc. several very large resignallings), and also allowed a large amount of station and some line openings, including letting the private member speller experimental reopening act pass.
Her government also appointed competent businessmen to head up the company (the two Robert Reids) and generally left them to get on with it and make efficiencies such as sectorisation. In many ways it was a golden era.
Has to be said that the railways under Thatcher compared with the Railways under Heath/Wilson/Callaghan is a bit like comparing the NHS in England now with the NHS in Wales now.