STAGECOACH has parted company with the boss of its rail division shortly after the company said it would take legal action against the UK Government after being barred from bidding from three major franchises, writes Scott Wright.

Tim Shoveller, who has worked for the transport giant for nearly 12 years, will leave next month to join Network Rail as regional managing director, north west and central. His departure comes a week after Stagecoach revealed it was suing the Department of Transport (Dft) after being disqualified from the bidding process for the East Midlands franchise.

As managing director of Stagecoach’s UK rail division, Mr Shoveller has been responsible for managing the company’s rail contracts and new business opportunities since 2016. He joined from Virgin Trains in 2007.

Stagecoach revealed in April that it had been told by the Dft that its bid to run the East Midlands, West Coast and South Eastern franchises were non-compliant because its proposals did not take on sufficient risk for liabilities on the Railway Pension Scheme. It is preparing to launch a judicial review of the Dft’s decision to rule it out of the East Midlands bid and award it to Abellio, and is considering action against the decisions to rule it out of the West Coast and South Eastern franchises bid processes.