Firms may bid for rail contract

Chris Grayling has failed to rule out allowing Virgin and Stagecoach to rebid for the East Coast rail franchise, despite the early termination of their joint contract.

Labour’s Paula Sherriff joked it would be “Virgin on the ridiculous” if the companies were allowed to be involved in the key route in future.

Transport Secretary Mr Grayling said the Dewsbury MP appeared to have “misunderstood” the Government’s plans for 2020 onwards, with a public-private partnership in development.

Mr Grayling’s remarks came after he opened the bidding process for rail operators who will help plan the first trains on HS2.

Speaking during questions after the announcement, Ms Sherriff said: “Can the Secretary of State confirm that Virgin Stagecoach will be allowed to rebid for the East Coast franchise when that contract is put out to tender once again, because it does appear to be Virgin on the ridiculous.”

MPs groaned before Mr Grayling replied: “I think you have misunderstood our plans. From 2020 on the East Coast mainline we’re going to do things completely differently.

“It’s not going to be a current-style bidding process. We’re shaping a public-private partnership.

“It’s not a question of who is and is not allowed to bid, we have not even decided what the process is going to be.”