Trainline sues Transport Secretary over ‘secret' deal for state-owned rail operator
Trainline is suing Heidi Alexander, the Transport Secretary, over the alleged backdoor award of a £32m ticketing contract by state-owned operator LNER.
LNER, which has been run by the Department for Transport (DfT) since 2018, recently extended a ticketing sales platform contract it uses without offering rivals such as Trainline the chance to bid for the 10-year deal.
Trainline claims that the failure to seek alternative bids means that Ms Alexander and LNER ignored due process as well as the best interests of passengers and the taxpayer.
It alleges that the publication of the award on the Government's procurement website on December 23 was also too opaque because it effectively buried the news during Christmas week, limiting the ability of other parties to respond.
LNER awarded the contract for the central booking engine that supports its digital ticket sales to Australia's Vix Technology.
Trainline has its own rival division providing a similar 'white label' service to train operators and would have expected to compete for the work had it been tendered.
It is understood that the company, which has filed the claim at the Technology and Construction Court against LNER and the Transport Secretary, will claim that a direct award of the contract was not permissible under procurement law because the terms were being varied in scope, duration and beneficiaries.
The terms of the award also mean that the ticketing platform used by LNER, which operates between London Kings Cross and Scotland via Leeds and Newcastle, could be extended across the rail network.
Rail unions have pressed Labour to squeeze out third-party ticket bookers such as Trainline, with the RMT accusing the company of engaging in 'relentless profiteering.'
While the Government plans to simplify fares and ticketing as part of its nationalisation of the railway, it has nevertheless said that there would still be a need for 'an innovative and competitive third-party retail market.'
Trainline even hosted the launch of the nationalisation policy by Louise Haigh, the then-transport secretary, last year.
Labour subsequently ruled out establishing a national website and app to promote cheaper fares in competition with the firm.
However, it reversed that guidance in January to say that a plan to bring together the ticket websites of individual operators was now in the pipeline.
Though the DfT maintained that private-sector retailers would be able to compete in an open and fair manner, shares of Trainline, which has 18m customers, have since fallen by almost one third.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
11 minutes ago
- The Sun
‘There might be some issues' – Championship club could be forced to leave beloved 27,111-seater stadium for third time
CHARLTON ATHLETIC managing director Jim Rodwell has not ruled out the club leaving The Valley. The Addicks are back in the Championship for the first time since 2020 next season. 2 2 Nathan Jones masterminded a charge up the League One table after Christmas, eventually beating Leyton Orient in the playoff final. But Charlton continue to be dogged by questions over the future of their South London ground. The Valley is under the control of the club's former owner Roland Duchatelet. He sold the club six years ago but retained ownership of the 27,111-seat stadium and the club's training ground. A 15-year lease was signed by the club in 2021, with 11 years remaining before it expires. The EFL require clubs to have at least ten years left on a stadium lease. Charlton director Rodwell admits talks are ongoing with Duchatelet over an extension. But he did not rule out the possibility that the club could eventually have to leave the site - home to the club for most of their 106-year existence. He told talkSPORT: "Yes, Mr Duchatelet, or his company, do still own the stadium and training ground. "We've made no secret of the fact we would like to buy the stadium or enter into a longer term lease on the right terms. EFL club release 'gorgeous work of art' kit and even rival fans want to buy it "Those conversations are ongoing. We have a considerable period of time left. I know fans like certainty and so do businessmen. 'It's always a possibility [we will have to move]. I think the desire would be to stay at The Valley. "It's a brilliant ground and great atmosphere. It's fit for purpose." He added: "Our [lease] is getting down to [ten years], so there might be some issues there." Charlton left The Valley between 1923 and 1924 for nearby Catford. They played at the now-demolished Mount Stadium, before a proposed merger with Catford Southend FC fell through. Charlton left the Valley again in 1985 after the ground fell into disrepair and the club's debts spiralled. They ground-shared with Crystal Palace before a triumphant return to a completely renovated stadium in December 1992. Rodwell continued: "What is The Valley actually worth? It's worth a lot to Charlton but probably not a lot to a developer. "What else could you stick on there? "I'm always a great believer that commercial reality would hit home. "There's always a deal to be done there. Talks are ongoing. They have been conducted in the right spirit."
Telegraph
12 minutes ago
- Telegraph
Will you pay more council tax to fund the North? Use our tool to find out
Households across southern England that pay less than £2,000 a year in council tax are facing an increase in their bills to fund the North. Angela Rayner is cutting the amount of central government funding that local authorities which set low bills will receive. The Tories accused the Deputy Prime Minister of 'punishing' these councils and putting them under pressure to either cut services or increase council tax to cover the funding shortfall. The changes could lead to bills rising across southern England to enable more money to be sent to northern cities. About half of council income comes from central government, and Labour claims that the way it is shared between councils is unfair. There are 13 councils that charge less than £2,000 a year in council tax, all of them in London. However, town halls can only put up council tax by a maximum of 5 per cent unless a local referendum approves a higher rate, or the Government gives them permission to do so. The plans for what Ms Rayner believes is a 'progressive' redistribution were unveiled in a consultation document published on Friday. It will change the way that central government grants are shared out, based on calculations of what local authorities could raise if all areas charged the same rates of council tax based on their housing mix. The document states: 'The Government is proposing to set a notional council tax level that achieves the objective of full equalisation. 'To fully equalise against the council tax base, we set the notional council tax level at the average Band D level of council tax in England in scope of these reforms (c£2,000 in 2026-27).' The Government will also introduce a new formula for accounting central government funding based on local needs, including population, poverty and age. Ms Rayner believes it is unfair that people living in the North often pay hundreds of pounds more in council tax than those in southern areas. For example, a three-bedroom semi-detached home in Hartlepool generates a council tax bill higher than a 10-bedroom home in Westminster valued at £80 million. The combination of the two changes will mean steep falls in grant income for wealthier councils, mainly in London and the South East, forcing them to either raise council tax rates to make up the shortfall or cut public services. Ms Rayner also unveiled changes to council tax collection to stamp out 'unacceptable, aggressive' practices. To help households manage their finances, she proposes to change council tax billing from 10 months to 12 months. Council tax bills tend to be paid through 10 instalments (from April to January) and the majority of the 25 million council tax bills issued each year in England are paid by this method. But 12 month instalments could help households to spread the cost of their bills over a longer period. The Government is also looking at enforcement processes, including 'a more appropriate and proportionate time frame' before councils can demand a full bill from households. When someone fails to pay council tax, a reminder can be sent seven days after a missed payment. Following that, if the bill remains unpaid seven days after the reminder notice has been issued, the full amount due for the year becomes payable.
Finextra
22 minutes ago
- Finextra
Open Banking Won't Work Without Trust. Here's How We Enable That.: By Mathieu Altwegg
Open banking isn't just a regulatory shift - it's a generational opportunity. For the UK, one of the most digitally connected economies in the world, it offers a pathway to make managing money simpler, smarter, and more rewarding. It holds the promise for consumers to move money instantly, access better financial tools, switch providers effortlessly, and view their entire financial lives in real time. That future is no longer theoretical - it's here and now is the time for it to scale, but only with the right catalyst. From in-game purchases to managing cross-border transfers, Open Banking is already enabling faster, more flexible money movement. For the consumer, convenience is king. In 2023 alone, 70% of all UK online purchases were made via mobile phones, while over 90% of in-store transactions used contactless. The shift in consumer behaviour is clear: people expect seamless, secure, and intuitive ways to pay – if they trust it they will use it. Yet adoption in the UK remains uneven. Many consumers are still hesitant to embrace open banking as a way to pay - often due to concerns around protection, limited awareness, and inconsistent user experiences. The underlying technology is strong, but trust has yet to catch up. And trust isn't built overnight - it's earned through consistent focus, sustained investment, and a relentless commitment to putting customers first. It goes beyond fraud prevention; it's also about how issues are handled when things go wrong. If a consumer makes a payment to a business and doesn't receive the goods or services, they need the reassurance that they'll be reimbursed. The same goes for merchants – while cost savings and speed are attractive, many have proved reluctant to embrace pay by bank without the systems in place to smoothly handle disputes. Why would they risk turning a hard-won customer into a net cost if something goes wrong? These are the kinds of safeguards that will turn curiosity into confidence, and that's the gap we need to close. Simplicity and Control will Drive Trust and Uptake At its heart, open banking is about giving people more choice. Whether it's streamlining loan applications, enabling one-click checkout, or bringing together multiple accounts into a single, real-time view - open banking empowers consumers to manage their finances on their own terms. Recurring payments are a clear example. Today, Direct Debit dominates but brings friction: delays due to failed payments, manual work to match payments and records, and user visibility. Variable Recurring Payments (VRPs), enabled by open banking, offer a compelling alternative: real-time availability of funds, enhanced transparency, and greater user control. That translates into fewer payment failures and more predictable cash flow for businesses and consumers alike. But it is account-to-account (A2A) payments backed by a trusted provider with additional protections and features that will cement open banking as a go-to mechanism. Open banking unlocks powerful consumer features: tracking subscriptions and bills in one place, setting limits, and stopping unwanted charges. These convenient experiences will build trust, but consumers are both savvy and cautious; aware that risk still exists. They will need the presence of a trusted independent player in the payment process who can provide them protection. Collaboration Is the Key to Change The opportunity is enormous. Innovate Finance estimates that growing the UK's fintech ecosystem - where open banking is foundational - could unlock £328 billion in value over the next five years. But realising that value requires collaboration and consensus. No single organisation can do this alone. It will take coordinated efforts across banks, fintechs, payment providers, and policymakers to deliver consumer-friendly infrastructure that connects easily and works across providers. That's why we support collaborative A2A solutions that are open, secure, and built to scale - because a rising tide lifts all boats. Businesses Needs to Be Part of the Open Banking Story While the consumer opportunity is front of mind, the potential for business-to-business payments is just as transformational. Open banking can modernise how companies - from SMEs to large enterprises - manage cash flow, settle invoices, and access working capital. We should be pushing the boundaries of what's possible, not just for consumers, but for all users of the financial system. A UK Leadership Opportunity The UK has a proven track record of leading in payments innovation - from contactless adoption to the rise of challenger banks and embedded finance. The next leadership opportunity lies in scaling open banking, not just by improving the technology behind the scenes, but by embedding usability and trust across the ecosystem. The policy landscape is moving in the right direction. In her 2024 Mansion House speech, Chancellor Rachel Reeves reaffirmed the government's support for the development of open banking - signalling alignment between regulators and industry. For all these reasons, we're working with partners across the financial ecosystem to unlock the full potential of open banking. We've developed open-access A2A capabilities that support both consumer and business use cases - offering trusted, secure rails that complement card and other payment options. But we're not here to go it alone. We want to work with industry and policymakers to ensure that open banking delivers on its promise - for everyone.
