Northern 'only able to continue for a couple of months' says Transport Secretary

He made the comment after hearing a summary of the franchise’s most recent available financial information.

In October last year Mr Shapps announced he had asked Northern to set out a plan for the future of its service.

Mr Shapps wrote in a statement to Parliament how he was now considering a proposal about the franchise by the Department for Transport’s own ‘Operator of Last Resort’.

He added: “Following completion of this process I will consider whether to award ARN (Arriva Rail North) a short-term management contract or whether to ask the Department for Transport’s own Operator of Last Resort to step in and deliver passenger services.”

Mr Shapps said he would base his decision regarding which short-term option to choose on which provider most ensured value for money and quality.

Following the statement by Mr Shapps Transport for the North has called on the government to show ‘full commitment’ to rail services.

The group’s Strategic Rail Director David Hoggarth said: “A top priority for us is ensuring passengers are put first in this whole process - that includes continuing to deliver on improved services, on infrastructure, and on new trains.

“We accept there is no silver bullet that will solve all the issues – that’s why it’s important that the government also deliver a pipeline of significant investments in our railways as a matter of urgency.”