The distribution of rail franchises in the South will be postponed by at least three months. The delay follows a row over the awarding of the west coast rail franchise to First Group, removing the franchise from Virgin Trains.
This morning the Government cancelled the new contract with First Group - and the distribution of all new rail franchises pending a review of the process. The move affects rail services in the South - franchises for First Great Western, Southern, Southeastern and C2C trains are all due for renewal.
The move follows arguments from Sir Richard Branson - the owner of Virgin, against the franchise being taken away from his firm.
The government has said mistakes were made in the way contracts were processed.