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  1. ITV Report

Transport Committee to begin scrutinising failed East Coast rail franchise

The Transport Committee will begin scrutinising the failed East Coast rail franchise later.

The line connects stations in Yorkshire and Lincolnshire to London Credit: ITV Yorkshire

The line, which connects stations in Yorkshire and Lincolnshire to London, has been nationalised after the franchise agreement with Virgin Trains East Coast and Stagecoach Group was terminated last week.

In November 2014 Virgin Trains East Coast - a joint venture between Stagecoach (90%) and Virgin (10%) - was awarded the franchise to run trains on the line between London King's Cross and Edinburgh for eight years.

Stagecoach reported losses on the line and in November last year Transport Secretary Chris Grayling announced the franchise would be terminated in 2020 to enable it to become a public-private railway.

But in February Mr Grayling told the Commons the franchise would only be able to continue in its current form for a "very small number of months".

He said Stagecoach had "got its numbers wrong" and had "overbid", with Labour describing the decision as a "bailout".