Britain’s busiest long-distance rail route was effectively nationalised on Thursday when the Government confirmed it would take control of the troubled East Coast franchise, which National Express has run for the past two years.

National Express now faces a battle to keep its remaining two franchises — C2C and East Anglia — after the Department for Transport said that it was still considering whether it would take control of them also, under cross-default provisions.

The Liberal Democrats urged the Government to seize the other two franchises immediately. Norman Baker, the Liberal Democrats transport spokesman, said: “The Government should now take away the other two National Express rail operations — C2C and East Anglia — otherwise they’ll become lame duck franchises.”

In a written statement to the House of Commons, Lord Adonis, Secretary of State for Transport, said: “I can assure the travelling public that services will continue without disruption and all tickets will be honoured.”

National Express East Coast’s 3,100 staff will transfer to the government-owned East Coast Main Line company from midnight on November 13.

Government ownership will be a temporary measure with plans to begin a fresh competition next year for the blue-chip franchise that carries 17 million passengers a year, with the intention to award the tender mid-way through 2011.

However, unions and MPs are urging him to keep the rail route under public control — not least to provide a comparator for other privatesector rail operators.

The Department for Transport has been in discussions with National Express since July 1, when the rail operator announced that it would walk away from the contract after failing to secure a government bailout.

The East Coast Main Line from London to Edinburgh has struggled in recent years. GNER was forced to hand back the franchise in 2006 after the July 7 2005 terrorist attacks on London resulted in a big drop in tourism in the capital.

GNER was unable to meet the £1.3 billion in premium payments it had promised the Government in return for the franchise. Just three years later, National Express, which won a second franchise competition with an eyebrow-raising £1.4 billion bid, found itself in a similar position, as the recession deterred passengers.

The company had attempted to renegotiate the terms of the contract but talks broke down amid fears that other private rail companies, also experiencing a fall in passenger numbers, would want similar help.

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