London Daily

Focus on the big picture.
Saturday, Jan 31, 2026

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
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
×