Media playback is unsupported on your device

'Embarrassing' West Coast Main Line franchise deal to cost £40m

3 October 2012 Last updated at 10:09 BST

The decision to award the UK's multi-billion-pound West Coast Main Line rail franchise to FirstGroup has been scrapped by the government.

Transport Secretary Patrick McLoughlin said it was "deeply regrettable" that mistakes had been made by staff within the Department for Transport.

Two reviews have been ordered into what happened, and the process will be re-run. The estimated cost of the mistakes will be £40m, he said.