Going to play devils advocate for a minute:
An outgoing government (i.e. one that realises its probably lost the next election whatever is said in public) decides to say "No more", no more subsidies or investment, trains either cover their running costs or dont run. Fares increase, services are drastically reduced (except on TPE they are drastically reduced anyway). Rolling stock and routes mothballed, layoffs.
The overall UK rail subsidy is running at £11billion per year, divide that between the ~30 million taxpayers as an increase in the basic personal tax allowance.
Much shouting in the media, but government know they have probably lost the election so just ignore it.
What percentage of people actually use rail on a regular basis? Would these people change the way they vote, may be, but what about the rest who have just seen a modest increase in take home pay, would they vote differently, and more importantly an incoming governement would have to raise taxes again to restore everything or go to the magic money tree, which as Liz Truss found out, doesn't exist anymore.
OK so this is the nuclear option, but I could see some politicians wishing for a scaled down version, which would still result in serious cuts.
My point: All sides in the current disputes need to take a long hard look at their positions, that incudes management, unions, OLR, remaining ToCs, as they may just be dragging everything down. TPE seem to me to be an example of everything that is currently wrong with the UK rail industry.