The UK National Audit Office will investigate the government’s decision to allow the two firms operating the East Coast Main Line franchise to cut short the contract. In November last year, the Department for Transport said Virgin and Stagecoach could withdraw from running the London to Edinburgh service three years early, in 2020 instead of 2023.
Transport Secretary Chris Grayling announced last year that the deal to operate the line would be replaced by a new model which would be “a joint venture between the public and private sector, operated by a single management, under a single brand and overseen by a single leader”.
Following accusations that the decision will cost taxpayers more money, the National Audit Office will examine the contract shortening, as well as the new East Coast Partnership which will take over its running in 2020.
In 2014, Virgin and Stagecoach signed a deal to run the East Coast line from 2015 to 2023, promising the government £3.3 billion (EUR 3.7 billion) in premiums. However Martin Griffiths, chief executive of Stagecoach, which owns 90% of the joint venture, admitted last year that it had overpaid for the contract.
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