High speed train plan in doubt

An artist's impression of one of the new trains

Railtrack's £5bn plan to run high-speed trains across the West Coast Main Line is reportedly under threat due to spiralling costs.

The two-stage project launched with Virgin Trains would have allowed advanced tilting trains to travel at speeds of up to 140mph, cutting a journey between London and Manchester to just over one and a half hours.

But costs have more than doubled in under two years and Railtrack now wants to offer a cheaper alternative to a £3bn hi-tech signalling system which would have enabled top speeds to be used.

Sources say Railtrack wants to pull out of this second stage, as it will not be able to meet the scheduled 2005 completion date.

The company is expected to announce that it does not have sufficient funds to cover the expanding project costs when it publishes its annual results later this week.

Virgin boss Branson: legal action 'unlikely'

The project's £2bn first stage is due for completion by 2002 and will allow the new Virgin trains to use the 400-mile London-Glasgow line at speeds of up to 125 mph.

Virgin boss Sir Richard Branson is said to be unhappy with Railtrack after his company invested more than £1bn in 70 of the new trains, which are being built in Italy for assembly in Birmingham.

Railtrack has reportedly offered £250m compensation to Virgin Trains, which could pursue legal action although the company has said that is unlikely.

Rail regulator Tom Winsor has placed an "enforcement" order on Railtrack ordering the company to provide more information on progress of the project.

Railtrack has claimed that it needs at least £1bn in state aid to rebuild Britain's crumbling railways despite profits of £428m last year.