To ask the Secretary of State for Transport, what assessment he has made of the potential merits of public ownership for East Coast Mainline in the event that the franchise ends early.
Answered on
12 March 2018
Since 2015 the East Coast franchise has met all its financial commitments to the taxpayer, returning nearly £1 billion to the public purse. But this has come at a substantial cost of almost £200 million to Stagecoach. It is now clear that this franchise will in due course run out of funds and only be able to continue in its current form for a small number of months and no more.
The Government is therefore currently reviewing two options for the continuation of services on the East Coast. One is to allow Stagecoach to continue operating the service under a very strictly designed short-term arrangement. The second is for the franchise to be directly operated by the Department for Transport, through an operator of last resort. The Department will choose the option that offers best value for money for taxpayers and protects the interests of passengers. This assessment is ongoing, and a conclusion of the best option has not yet been reached.