How much pain will the government share?

Over the past year, the recession has caused rail revenue growth to fall well below the 8-10% target that formed the basis of winning franchise bids during the 2006-2008 rail boom. The failure to meet financial targets means that, between them, SWT, East Midlands, NXEC and Cross Country are forecast to rack up losses running into hundreds of millions of pounds before they qualify for relief in the form of revenue support from the government. This provision normally kicks in four years after a...

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