East Coast train prices to go up in the New Year
- 00:01:30
- ITN
East Coast train prices to go up in the New Year
The price of a train ticket on the East Coast Main Line is set to go up after a new public sector company called East Coast took over the running of the London to Scotland East Coast line from cash-strapped National Express. The new boss of the company, Elaine Holt, has said that the money paid back to taxpayers during the two years that the line is publicly operated will not be as much as that due to be paid by the previous franchise holder National Express. Ms Holt admitted "minor increases" to unregulated fares such as off-peak journeys from January, although regulated fares, including season tickets will stay in line with other train companies by coming down by 0.4 per-cent. National Express was contracted to pay premiums to the Government of £1.4 billion during the lifetime of its franchise but that figure is expected to be less under the new ownership. East Coast have also denied the company would be spending £1 million on a new livery for the service, saying the amount was "in the region of £100,000". Ms Holt has insisted that the new business was not nationalisation or a return to British Rail but would be run as a commercial operation with some of the profit being returned to the Government and the taxpayer. National Express is now facing calls from opposition MPs to be forced to give up its other two rail franchises - East Anglia and their c2c franchise. Rail unions have also called for East Coast to remain permanently in the public sector. But the Government plans to invite parties to bid for the franchise which will eventually be put back into private hands.
ITN | November 13, 2009
