FIRSTGROUP has dropped its legal challenge against Richard Bowker, the chairman of the Strategic Rail Authority (SRA), after it gained access to the scoring system used to determine whether it could bid for a new rail franchise.

The company has been trying to win a judicial review of the decision to exclude it from the next round of bidding for the new Greater Anglia franchise.

The decision by one of Britain’s best-performing train operators to back down reinforces Mr Bowker’s authority at the head of the SRA.

Mr Bowker said: “FirstGroup is a company that we have a huge relationship with. Moir Lockhead (First’s chief executive) and I are keen to stop worrying about this and move on.”

Last week the High Court gave FirstGroup access to the SRA’s scores on applications received for the Greater Anglia franchise, along with further explanations the SRA had submitted to the court.

FirstGroup said: “These have allowed us to understand the process more clearly and see in detail the reasoning behind the SRA’s decision to exclude us. We are clearly still disappointed that, as the best-performing operator in East Anglia, delivering the best value for money for the taxpayer, we have not been given an opportunity to bid. However, we have decided that it is not in our interests to proceed any further with our legal challenge and, accordingly, we have withdrawn.”

FirstGroup is believed to have been reassured by the SRA that it is still highly valued in the railway industry.

The company is also set to scoop the Transpennine franchise, due to be announced next week, after Connex, the only other contender had its southeastern England franchise revoked yesterday.

Mr Bowker denied that the FirstGroup decision to withdraw was made last night, when the SRA told Connex of the action that it has taken. FirstGroup is believed to have decided earlier this week to pull out of the legal action.

FirstGroup’s statement said: “We are now confident that we can work with them in a constructive manner in the future and put the past behind us.” FirstGroup has already declared its aim to bid for the new Greater Kent franchise, which will come up for competition next year after the termination of Connex’s franchise.