Avanti could have contract terminated early if it continues to inflict poor service on commuters

28 August 2024, 07:51 | Updated: 28 August 2024, 13:57

Avanti could have its contract terminated early if it continues to inflict poor service on long-suffering commuters, LBC understands.

Ministers want to take urgent action to end the under-fire firm's West Coast Mainline rule "as soon as possible".

They have instructed government lawyers to look into the details of the contract for the line, which connects London, Liverpool and Glasgow, and whether it could be ended early without whacking taxpayers.

Transport Secretary Louise Haigh is "exploring options and seeking advice" on the under-fire firm, dubbing their performance "woeful", a government source said.

But the last Conservative government signed off a huge extension to Avanti's contract, which will last until 2029, after former Transport Secretary Mark Harper said the company was back on track.

They argued that cancellations were down, more trains were arriving on time, and they were training more drivers too.

It can be ended as early as 2026 under the core terms of the deal, but it’s likely that breaking it earlier would come with hefty costs unless another loophole could be found.

Ministers are expected to give the green light to terminate some contracts next month - with an expected three-month grace period kicking in.

Others will be allowed to expire, and taken into public ownership in due course.

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All contracts are expected to come under public ownership within five years, under Labour’s plans.

A government source said: "We're taking legal advice to see if we can do anything earlier - we want to do it as soon as we possibly can.

"They've long provided a terrible service to customers which is completely unacceptable."

Transport Secretary Louise Haig hauled Avanti bosses in during her first week in the job for a furious dressing down over their performance.

Just four in ten Avanti trains were on time in the year to March 2023, according to data from the Office for Rail and Road, and nine per cent of all services cancelled.

And they had more than three quarters of a million delay claims in the last year too - a five year high.

The Rail Public Ownership Bill is currently going through parliament, and has just passed second reading.

It will make appointing a public sector operator like Great British Rail the default, rather than the last resort.

It’s expected to back to the Commons next week when MPs return to Westminster.

But there are fears about how much this could cost the taxpayer to terminate it early.

Insiders insist they will stick to promises made during the election not to impose costs to nationalise the railways.

A DfT spokesperson said: “We have been clear performance on the West Coast Mainline is not good enough, which is why the Transport Secretary immediately summoned Avanti and rail bosses to demand answers and urgent improvements.

“As part of our plans to reform our railways and put passengers first, we intend to bring all operators, including Avanti West Coast, into public ownership when their contract expires.”

An Avanti West Coast spokesperson said: “We’re unaware of any such steps being taken and we haven’t been contacted by the DfT about this matter.

"We met the Secretary of State alongside our colleagues at Network Rail last month to discuss the current challenges on the network including those which are unique to us as well as affecting the whole industry.

"It was a constructive session, and we look forward to holding more discussions with Network Rail as well as the Government on plans to improve our service in the coming months.

"The recent introduction of our new Evero trains has boosted capacity on the network and – combined with our refurbishment of our Pendolino trains, the introduction of Standard Premium and our innovative Superfare ticket – has significantly improved customer experience on our services.”