West Coast main line deal scrapped
The government has announced that the West Coast main line deal, which was won by FirstGroup back in August, is to be scrapped, with the bidding process set to start all over again. Rotten news for FirstGroup, but great news for Virgin Trains, which lost out in the process.
It is being reported that civil servants have found significant mistakes in the way that the risks for each bid were calculated and that the whole thing will have to be re-run. Virgin challenged the original decision in court and Sir Richard Branson appeared on TV a few times live from his hot, posh island, gaining the sympathy of almost nobody.
EDIT: It has been revealed that the cost to the taxpayer for cleaning up this cock-up will be £40 million. Nice.