The current system of rail franchising is a muddle that has not served passengers’ best interests, a parliamentary committee says in a report issued on Monday.

Publication of the Rail Franchises and Fares report by the Commons transport select committee follows the announcement by National Express on July 1 that it would be forced to default on its obligations under its east coast rail franchise. The Department for Transport (DfT) has said that, when that happens later this year, it will temporarily take over operation of the franchise.