Hitting the buffers

When National Express outbid competitors for the rail franchise on the east coast main line between London and Edinburgh, in August 2007, passenger numbers were growing and the economic outlook was rosy. Even so, some commentators thought the £1.4bn price tag for the remaining seven years of the franchise too high. Less than two years later, the projected growth of 9% a year has been reduced to 1% and will decrease as unemployment increases, the operator is pulling out of the contract and the taxpayer must pick up the bill.