Virgin faces losing West Coast rail line

Virgin Trains will find out this week whether it will lose its West Coast rail franchise to run trains through Stafford, Wolverhampton and Sandwell and Dudley.

The Government is due to announce the winner of the bidding for a new West Coast franchise in the next few days and Sir Richard Branson's company is facing competition from three others.

FirstGroup is currently tipped as the favourite in the battle to operate the London to Scotland line on which tilting, high-speed Pendolino trains run.

Whoever wins will face lobbying from Wolverhampton City Council and West Midlands transport authority Centro to pledge funding towards a rebuild of the city's rail station.

The winner will already benefit from the £600m refurbishment of Birmingham's New Street station, which is already underway.

The announcement comes as the rail industry comes to terms with the need to comply with cost-cutting recommendations made in a Whitehall-commissioned report by Sir Roy McNulty.

The RMT transport union is opposed to the McNulty views and fears for job cuts and fare increases on the West Coast service.

RMT general secretary Bob Crow said today: "Whoever wins the West Coast route next week, and all the signs point to FirstGroup, they should be left in no doubt that we will mount a massive industrial, political and public campaign to stop any attacks on our members' jobs and the services that they provide."

Shadow transport secretary Maria Eagle said: "Passengers are set to lose out no matter which companies win these new longer franchises because ministers have promised successful bidders they can hike fares, cut services and close ticket offices.

"The Government has told train companies they can levy fare rises of eight per cent above inflation in 2013 and 2014."

Rail minister Theresa Villiers said: "Our reform plans aim to deliver £3.5bn in efficiency savings while continuing to expand services for passengers.

Savings on that scale will enable us to end above inflation fare rises."