UK rail regulator blocks Virgin’s bid to return to the West Coast Mainline, citing network congestion, service disruption risks and impact on government rail revenue.
Virgin responded sharply to the regulator’s ruling, calling it “a blow for consumer choice and competition.” It argued that its proposal would have delivered 5 million additional seats annually under a “trusted brand with a track record for delivering award-winning, reliable train services.”
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Plans by Richard Branson’s Virgin Group to make a comeback on Britain’s West Coast Mainline have been thrown out by the UK’s rail regulator, amid warnings that the line is operating at near-maximum capacity and further services would increase disruption for passengers, it was reported.
The Office of Rail and Road (ORR) confirmed on Thursday that it had rejected open access applications from three operators—Virgin Trains, First Group’s East Coast Trains (known as Lumo), and Wrexham, Shropshire & Midlands Railway (WSMR)—to introduce new intercity services on the West Coast Mainline (WCML), Britain’s busiest railway corridor, The Guardian reported.
The regulator cited serious concerns over reliability, punctuality, and track availability, particularly at the southern end of the line around London Euston, which is already under heavy strain from existing passenger and freight services.
“After thorough assessment of each application, it was clear that there was insufficient capacity to approve any of the services without a serious negative impact on the level of train performance that passengers experience,” The Guardian quoted Stephanie Tobyn, the ORR’s director of strategy, policy and reform, as saying. She noted that while increasing competition can offer benefits, it must not come at the cost of declining service quality.
The decision marks a major blow to Virgin’s ambition to return to the national rail network after it was forced off the tracks in 2019, when the government blocked the renewal of its West Coast franchise over a pensions dispute. Virgin had applied to run three new open-access services between London Euston and destinations including Rochdale, Bolton, Liverpool Lime Street, and Birmingham New Street, under a 10-year contract lasting until December 2035.
The ORR said it had assessed each operator’s proposal independently but came to the same conclusion in every case: the WCML simply could not accommodate more trains without worsening delays and cancellations. Network Rail, which manages the UK’s rail infrastructure, had already declined to support the applications earlier this year, citing operational risks.
Documents released alongside the decision show that the Department for Transport (DfT) also opposed Virgin’s plans. Officials warned that the proposed services would “materially impact” revenue streams for existing government-subsidised and state-owned operators—such as Avanti West Coast and West Midlands Trains—and could significantly reduce the funds available for broader rail investment.
The DfT described the rail finances as “greatly constrained” and expressed concern that Virgin’s proposal would increase financial pressure on taxpayers.
Virgin responded sharply to the regulator’s ruling, calling it “a blow for consumer choice and competition.” The company argued that its proposal would have delivered five million additional seats annually under a “trusted brand with a track record for delivering award-winning, reliable train services.” It also took aim at Labour’s plans to nationalise rail services, saying: “Anyone who remembers British Rail would rather forget it. Competition improves services, increases rail ridership, and drives better results for everyone, including the taxpayer.”
Virgin’s future ambitions in the rail sector now rest on a separate bid to run cross-Channel services as a competitor to Eurostar. That application is still under regulatory review, with the ORR expected to decide in the autumn whether Virgin can gain access to international rail terminals and depot space.
Meanwhile, WSMR, which had proposed a new regional route, said it was “extremely disappointed” by the ORR’s rejection, noting that it was the only applicant to receive support from the DfT. A spokesperson stated: “We have spent the past two years demonstrating that capacity and performance concerns can and would be negated by the industry working together… We will now urgently seek to reengage with the ORR and determine our next steps regarding the future of this vital passenger service.”
East Coast Trains did not issue a comment, though the company continues to expand its footprint elsewhere. Last year, the ORR approved Lumo’s plans to operate new services between London and Stirling, adding to its existing London–Edinburgh route. However, its latest bid for a Glasgow extension was turned down in this round.
Although the government plans to nationalise passenger services on the West Coast Mainline by October 2027, it has maintained that private operators can still run “open access” routes—provided they can be accommodated without compromising performance or public finances.
