Default on the tracks; Britain grinds to a halt. The prospect will raise more than a groan from long-suffering commuters on the UK’s overcrowded railways, on some measures Europe’s most expensive (at least when comparing peak as opposed to average fares). Yet the temporary renationalisation of National Express’ East Coast franchise, linking London and Edinburgh, does not mark the start of a rolling bail-out.

The East Coast line’s problems arise from the £1.4bn National Express agreed to pay in August 2007 over the seven years it was due to operate the franchise. The recession has since laid bare the rosy assumptions it made about passenger growth and losses have increased at the special-purpose vehicle it created to operate the franchise.