A PROPOSAL by train company Grand Central Railway to run four new daily services between Newcastle and Manchester has been rejected by the rail regulator, Tom Winsor.

The company had hoped to run cut-price services between the two destinations, taking in a number of stations, including Darlington, York and Leeds.

Its application was rejected after a consultation process that involved the Strategic Rail Authority (SRA), passenger bodies and other train operators.

Mr Winsor said that, while the proposed services would bring benefits to passengers, most of the route they would serve already had high-frequency, high-speed services using trains of a comparable quality.

He also said he had material doubts about the company's projected levels of income and said there was a lack of evidence underlying this.

Mr Winsor said: "Approving Grand Central's application in these circumstances would therefore involve a considerable risk with respect to the level of abstraction from existing franchised train operators, with adverse consequences for their ability to plan their businesses and for the SRA's financial position.

"Whilst the sums involved would form a relatively small percentage of the SRA's overall budget, that budget is already substantially contractually committed.

"The sums involved in absolute terms could be substantial."