The Government is to take over the running of the East Coast Main Line after present operator National Express defaulted on its franchise.

Transport Secretary Lord Adonis said he had set up a publicly-owned company which will take over the East Coast line when National Express ceases to operate the franchise - probably later this year.
Lord Adonis added that the Government may have grounds to terminate National Express's other rail franchises - East Anglia and the London to Tilbury and Southern franchise c2c.
The announcement of the takeover came as National Express announced its chief executive Richard Bowker, a former boss of the Strategic Rail Authority, was leaving to take up a Middle East rail job.

National Express was contracted to pay the government £1.4bn to run the East Coast Mainline, which runs between Edinburgh and London, until 2015. However sales grew by just 0.3% in the first three months of 2009, compared with 9% over the whole of last year.

The firm is currently trying to reduce a debt of about £1.2bn. Capital spending cuts have been made, dividend payouts reduced and 750 jobs have been lost. Last month, it started charging passengers for reserving a seat on its East Coast and East Anglia franchises.