London Daily

Focus on the big picture.
Saturday, Dec 13, 2025

New rail contract award to Go-Ahead branded ‘a sick joke’

New rail contract award to Go-Ahead branded ‘a sick joke’

Contract to run Britain’s biggest commuter rail network comes a week after £23.5m fine
The transport group Go-Ahead has been awarded a new contract to run Britain’s biggest commuter rail network – a week after being fined £23.5m for wrongly withholding £50m of taxpayers’ money on another franchise.

The rail union RMT said it was a “sick joke” that the group’s Govia joint venture was given a three-year deal to continue running the Thameslink, Southern and Great Northern franchise, which served about a million passengers daily pre-Covid.

Govia, a joint venture led by Go-Ahead with the French firm Keolis, was stripped of the Southeastern franchise by the transport secretary, Grant Shapps, last September for “breaches of good faith”.

The firm’s £23.5m fine from the Department for Transport for failings on Southeastern was less than the £30m it had set aside. Go-Ahead’s share price has risen 20% in the last week on the smaller fine and rumours of a fresh award.

The group’s chief financial officer, Elodie Brian, who was the chief financial officer at Southeastern during the period where most breaches occurred, from 2014-19, quit last September as the scandal emerged. The Go-Ahead chief executive, David Brown, also stepped down.

Investigations since found more irregularities at Southeastern, dating back to 2006. Go-Ahead eventually repaid £51.3m, including interest, of the money it had wrongly withheld in overpayments from the DfT. The case has been referred to the Serious Fraud Office.

Although senior directors worked at both franchises, an investigation led by the chairs of Go-Ahead and Keolis found no evidence that any similar accounting issues existed at Govia Thameslink Railway as Southeastern.

The general secretary of the RMT, Mick Lynch, said: “Shapps has done this having been reassured that Go-Ahead are safe with public money on the strength of a report conducted by the same people who ripped off the public in the first place.

“This was a totally unnecessary decision, driven by an ideological fixation with greed and profit because the operator of last resort, which picked up the wreckage of Govia’s Southeastern franchise, was ready and waiting to take over and run it in the public sector.”

Manuel Cortes, the TSSA general secretary, said the move “beggars belief”, adding: “Shapps is throwing good money after bad.”

The new contract starts on 1 April 2022 and will run for at least three years, with a possible three-year extension. Go-Ahead is one of the last British private firms running a UK rail network, with the state-run Operator of Last Resort now in charge at Northern and LNER as well as Southeastern.

The deal is a management contract, which, unlike franchises, has no cost risk to the operator. Govia Thameslink Railway, or GTR, will earn a fixed fee of £8.8m a year and up to £22.9m on top if it meets performance targets. The £31.7m maximum is equivalent to a margin of about 1.85%, Go-Ahead said.

The rail minister, Wendy Morton, said: “With their plans for improving the punctuality, reliability and accessibility of their services through close collaboration with Network Rail, we are proud to partner with GTR to create a truly passenger-focused service.”

Christian Schreyer, the chief executive of Go-Ahead, said: “A top priority is to build passenger numbers back after the Covid-19 pandemic. Go-Ahead will bring commercial acumen and international experience to bear in encouraging people back to the railways.”
Newsletter

Related Articles

0:00
0:00
Close
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
×