Passengers don't care who builds these new lines and who pays for them they just want to see these improvements so the services get better

Anthony Smith, Rail Passengers' Council

"But passengers don't care who builds these new lines and who pays for them they just want to see these improvements so the services get better."

The government has also fallen out with the rail industry.

A row developed on Wednesday night after Railtrack announced a big increase in the cost of upgrading the track and signals on the East Coast main line.

Rail company Virgin is competing with the present incumbent, GNER, for the franchise and a decision from the SRA has already been a long time coming.

But the authority suspended the competition process on Wednesday after Railtrack announced that costs could increase by between 20% and nearly 100%.

'Urgent' questions

Deputy Prime Minister John Prescott said: "I view with grave concern the increase in Railtrack's cost estimates for the East Coast mainline announced by the Strategic Rail Authority today."

Mr Prescott said he had asked SRA Chairman Sir Alastair Morton to "advise me urgently of the reasons for this, why this information has only become available at this late stage and what the implications are for the East Coast refranchising process now taking place".

SRA chief executive Mike Grant said the new information about costs "must now generate a pause in the refranchising process for East Coast".

Extra demands

Both Virgin, which already runs the West Coast mainline route, and GNER had produced plans to increase capacity and cut journey times as part of their submission to the SRA in their attempt to win the franchise.

Virgin chief Sir Richard Branson said on Wednesday his company's bid was better than GNER's and would involve less infrastructure costs.

The upgrading of the route would involve investment by a combination of Railtrack, the SRA and the franchise winner.

Railtrack said it had increased the upper end of its cost estimates after extra demands were made by the SRA.

Railtrack also said estimates were difficult when it was not known who would be taking over the franchise and when the SRA had yet to publish its overall strategic plan for the railways.