National Audit Office to investigate East Coast rail 'bailout'
Watchdog to look at decision to allow Virgin and Stagecoach to hand back franchise early
A controversial decision to allow two companies to hand back a rail franchise three years early is to be investigated by Britain’s public spending watchdog.
Chris Grayling, the transport secretary, was accused of effectively bailing out Stagecoach and Virgin’s joint venture Virgin Trains East Coast by allowing them to cut short their deal to run trains on the East Coast mainline. The termination of the franchise came after projected growth in passengers failed to materialise.
Source: Guardian Transport