I want to deal with the loss of premium payments. According to the Secretary of State’s own “Short-term Intercity East Coast train operator 2018 options report”,
“the business revenues are estimated to reach around £2bn over the period of interim operation and the forecast income or premium for taxpayers is estimated at around a quarter of a billion pounds.”
That is about £420 million less than had been anticipated under the VTEC contract. Who will fund that black hole in the Government’s finances? Will it be taxpayers or will it be passengers? Will the Secretary of State have to cut other departmental budget lines, or has the Chancellor agreed to bail him out?