Tories scupper ‘lifeboat’ needed to rescue East Coast line

THE “lifeboat” needed to take the failing East Coast main line back into public ownership has been dismantled by the Tories.

Directly Operated Railways, set up to run services for the Government, was broken up and outsourced in 2015, when the East Coast franchise agreed to pay £3.3billion to run the line for eight years.

Just three years in, the Virginbranded franchise, 90% owned by Stagecoach, claimed it was running out of money. The Government said Stagecoach had returned £1billion to the public purse but taxpayers will lose £2.4billion.

The line was previously taken into public ownership in 2009. Run under Directly Operated Railways it returned £1billion to the Treasury.

The Department for Transport said it “maintains a full capability to act as an operator of last resort”.

Stagecoach’s latest financial report shows a total operating profit of £192million for 2017.

The National Audit Office has said it will investigate the Government’s handling of the East Coast crisis.