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West Coast Main Line: Government U-turn 'humiliating'

3 October 2012 Last updated at 01:25 BST

The government has scrapped its decision to award the West Coast Main Line rail franchise to FirstGroup, because it says the bidding process was flawed.

Ministers say there were "significant technical flaws" in the process which resulted in FirstGroup winning the franchise ahead of current operator Virgin Trains.

The BBC's transport correspondent Richard Westcott has said it is a humiliating admission for the government.