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Rail companies on the East Coast Main Line are being introduced again underneath authorities control.
Transport Secretary Chris Grayling instructed Parliament that momentary state possession would offer the smoothest transition to a new operator.
The loss-making service is being renamed London and North Eastern Railway (LNER).
It is the third time in a simply over a decade that the federal government has referred to as a halt to the East Coast franchise.
Mr Grayling instructed Parliament that after two months of research he had concluded that taking the service again into state control was the best choice.
"I plan to use a period of operator of last resort control to shape the new partnership," stated Mr Grayling.
He stated the purpose was to create a new public-private partnership from 2020, with "one single team operating the railway".
"They will then begin the task of working with Network Rail to bring together the teams operating the track and trains on the LNER network."
The London to Edinburgh line has been run by a three way partnership between Stagecoach and Virgin, since 2015.
The franchise was supposed to run till 2023, however it turned clear on the finish of final yr it was working into bother. Mr Grayling stated earlier this yr the franchise would finish early, main to accusations the federal government was bailing out the present operators.
Mr Grayling stated the brand new association would don't have any impression on passengers or employees.
Shadow Chancellor, John McDonnell posted on Twitter that he welcomed the transfer, which he stated was implementing Labour's Manifesto promise to renationalise the railways.
Twitter submit by @johnmcdonnellMP
Good to see Grayling implementing first stage of Labour’s Manifesto promise to renationalise the railways. I feel I’m proper in saying that he’s now nationalised extra railways than any Labour minister in 6 many years. Come on Chris, East Coast line at this time, the entire system tomorrow.
— John McDonnell MP (@johnmcdonnellMP) May 16, 2018
Green Party MP Caroline Lucas posted on Twitter that public possession ought to be prolonged the remainder of the rail community.
Twitter submit by @CarolineLucas
The scrapping of the East Coast franchise ought to be the start of the tip for the privatisation experiment on our railways. If public possession is nice sufficient for this line, then why not the remainder of the community? #WeOwnIt
— Caroline Lucas (@CarolineLucas) May 16, 2018
Mr Grayling instructed parliament that Stagecoach and Virgin have misplaced virtually £200m, however that there had not been a loss to taxpayers "at this time".
He stated he has obtained "official advice" that Virgin and Stagecoach ought to be allowed to proceed bidding for future rail franchises.
After trying into issues on the service, Mr Grayling stated he was suggested "that there is no suggestion of either malpractice or malicious intent in what has happened".
He also said that the companies have paid a "high financial and reputational price" in relation to the East Coast route.
Stagecoach, which has operated the franchise with Virgin Trains since 2015, stated the businesses had tried to negotiate a new contract with the Department for Transport, with out success.