Collapse of Virgin Trains East Coast deal leaves taxpayers £2BILLION out of pocket

The Government today confirmed it was taking the routes back into public control, just three years into an eight-year deal which would have been worth £3.3billion had it been seen through to a conclusion.

Transport Secretary Chris Grayling confirmed the decision in an announcement in the House of Commons today – immediately drawing condemnation from Labour and trade union leaders who dubbed it a “bailout”.

Virgin Trains East Coast, spearheaded by managing director David Horne, won the contract to run the East Coast line after it was privatised in 2015.  

Instead of being run by the Virgin Rail Group, the company is operated by Inter City Railways, which is 90 percent owned by Stagecoach, with Virgin Group retaining a 10 percent stake.

Add a Comment

Your email address will not be published. Required fields are marked *