PASSENGERS on the East Coast Main Line between Scotland and England will have their journeys cut by up to 18 minutes after the Government announced a £1.2 billion contract.

A total of 270 carriages will be manufactured in Britain by Hitachi Rail Europe at its new purpose-built factory in Newton Aycliffe, County Durham, as part of the Government's overall £5.8bn Intercity Express Programme.

The latest order for the trains will be operational on the line from 2019 and will deliver significant benefits to passengers.

These include boosting capacity by 18%, improving train reliability, and cutting journey times between London, Leeds, Newcastle and Edinburgh by up to 18 minutes.

Transport Secretary Patrick McLoughlin said: "By signing this deal we have provided further proof of our determination to transform Britain's railways into a world-class operation.

"This will not only deliver significant benefits to passengers by further slashing journey times and bolstering capacity, but will also stimulate economic growth through improved connectivity between some of Britain's biggest cities."

l Meanwhile, Network Rail members approved a fresh lucrative bonus package for its top directors. The move will see five executives to share a pot of £2 million, which will only be paid out if key targets are met by 2015.