West Coast Main Line tussle continues

By LBV

03 Oct 2012

Sir Richard Branson has succeeded in halting the decision to hand the contract of the West Coast Main Line to First Group after he complained that his Virgin Trains company had been unfairly treated during the tender process.

Virgin initially won the contract in 1997 but lost out on the opportunity to extend the contract for another 13 years when First Group entered a bid believed to be worth £1bn more.

The company was due to take over the running of the trains between London and Edinburgh – running via Preston – in December. It had promised lower fares, faster trains and better connectivity between Lancashire’s towns and the rest of the UK.

However, Virgin boss Branson said First Group’s claims were unworkable and that the tender process had been flawed. He began to compile a legal case before the Department of Transport confessed that there had been ‘completely unacceptable mistakes’ made when making the decision.

Transport secretary Patrick McLoughlin said: “I have had to cancel the competition for the running of the West Coast franchise because of deeply regrettable and completely unacceptable mistakes made by my department in the way it managed the process.

“A detailed examination by my officials into what happened has revealed these flaws and means it is no longer possible to award a new franchise on the basis of the competition that was held.”

Patrick McLoughlin was not part of the transport department when the decision was taken, only being appointed to his current role last month in the latest cabinet reshuffle.

Sir Richard Branson said of the decision: “I am pleased to say that the DfT has looked at all of the facts and found significant flaws in the way its officials handled the process. They have basically acknowledged that what we had been saying is correct.”

First Group responded with a statement, which read: “We are extremely disappointed to learn this news and await the outcome of the DfT's inquiries. The DfT has made it clear to us that we are in no way at fault, having followed the due process correctly. We submitted a strong bid, in good faith and in strict accordance with the DfT's terms.”
 

Enjoyed this? Read more from LBV

Latest news

1

PNE confirm talks with US-Saudi businessman Preston North End

PNE confirm talks with US-Saudi businessman

27 Jan 2026

2

Lancashire innovation growth programme boosted by new senior appointments Prof Andy Schofield Prof Graham Baldwin Rebecca Latham Dr Robert Holbrook

Lancashire innovation growth programme boosted by new senior appointments

27 Jan 2026

3

Airframe Designs announces rebrand to AFD Systems AFD Systems team

Airframe Designs announces rebrand to AFD Systems

26 Jan 2026

4

£453.5m investment to deliver advanced new radar for Royal Air Force Typhoons Typhoon aircraft

£453.5m investment to deliver advanced new radar for Royal Air Force Typhoons

22 Jan 2026

5

Rose departs EG ahead of US IPO EG

Rose departs EG ahead of US IPO

22 Jan 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Employment Rights Act Update for Businesses: What Employers Need to Know for 2026
Employment Rights Act Update for Businesses.png.png
LBV Hub Webinar
27 Jan 2026 - 27 Jan 2026

Employment Rights Act Update for Businesses: What Employers Need to Know for 2026

Online via Zoom, Preston, PR5 6AW

09:30 - 10:30

The Marketing Meetup: Lancashire (January)
LBV Hub Networking
27 Jan 2026

The Marketing Meetup: Lancashire (January)

Six Connections, Slater Terrace, Burnley, BB11 4SA

18:00 - 20:00

Chamber Breakfast – February
Logo.jpg.jpg
LBV Hub Networking
03 Feb 2026 - 03 Feb 2026

Chamber Breakfast – February

The Olive Branch, Lancaster, LA1 4XQ

08:00 - 10:00

Business Breakfast Networking Event
LBV Hub Networking
04 Feb 2026 - 04 Feb 2026

Business Breakfast Networking Event

Media Factory, University of Lancashire, Preston, PR1 2HE

08:00 - 10:30

AI Growth Accelerator
AI Growth Accelerator 1.png.png
LBV Hub Webinar
04 Feb 2026 - 04 Feb 2026

AI Growth Accelerator

Online, _, _

12:00 - 12:20

Cyber Resilience Boardroom Session
Cyber Resilience Boardroom Session.png.png
LBV Hub Webinar
04 Feb 2026 - 04 Feb 2026

Cyber Resilience Boardroom Session

Online, _, _

13:00 - 13:20

E-commerce in 2026: From stores to systems
PTC banner Feb 26.jpg.jpg
LBV Hub Networking
10 Feb 2026 - 10 Feb 2026

E-commerce in 2026: From stores to systems

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Degree apprenticeship information sessions for businesses
student centre entrance.jfif.jpg
LBV Hub Webinar
10 Feb 2026 - 13 Feb 2026

Degree apprenticeship information sessions for businesses

University of Lancashire, Virtual event, -

10:00 - 09:30

The Business Network Central and East Lancashire
LBV Header (29).png.png
LBV Hub Networking
11 Feb 2026 - 11 Feb 2026

The Business Network Central and East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Future Forward Business and Skills Summit
Future Forward Business & Skills Summit
LBV Hub Networking
20 Feb 2026

Future Forward Business and Skills Summit

Lancashire Energy HQ , Blackpool, FY4 2QS

08:00 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin