The decision to allow two of the companies that operate in the East Coast Main Line, for short, the contract is being studied by the public spending watchdog.
In November, the Department of Transport said the Virgin and Stagecoach could withdraw from the running of the London to Edinburgh service with three years in advance.
The National Audit Office is now investigating the government’s handling of the Â£3.3 million of franchise.
The ministers said that any suggestion of the taxpayers be out of pocket I was wrong.
This comes after critics of the decision, including Lord Adonis, a former National president of the Infrastructure Commission, said that the measure would eventually cost the taxpayers thousands of millions of pounds.
The ‘rescue’ of the signatures
In 2014, the Virgin mary, the Diligence, the signing of an agreement to run the East Coast line until 2023, with the government’s promise of Â£3.3 million in premiums.
However, Martin Griffiths, chief executive of Stagecoach, which owns 90% of the joint venture, he acknowledged last year that it had paid more for the contract.
He said that the business had been affected by the delays in the upgrade of the uk rail infrastructure.
David Horne, managing director of Virgin Trains East Coast, also said last week that the delay meant plans to introduce a new fleet of high speed trains on the route for the 2019 “were no longer of delivery”.
Virgin boss Sir Richard Branson, has said that the deal had cost the Virgin and the Diligence of 100 million pounds.
Transport secretary Chris Grayling, announced last year that the agreement to operate the line would be replaced by a new model that could be “a joint venture between the private and public sector, operated by a single management, under a single brand and overseen by a single leader”.
Mr Grayling said: “this means That, when things go wrong, there is a computer to do something.”
But the government has been accused of “rescuing” the franchise through the Labour peer Lord Adonis, who nationalised the East Coast Main Line in 2009, when its then operator National Express was unable to make their payments.
Mr Grayling said earlier this month: “it Is much more complex than that. Lord Adonis is not involved in this; he has his information wrong.”
The NAO now says it will review the decision to cut short the contract, as well as the new East Coast Partnership who will be in charge of his execution in the year 2020.
The NAO said: “we hope to examine the [government] of the department of administration of the franchise to date and the implications of its plans for the new partnership.”
A spokesman for the Department of Transport said: “The government has been very clear – no one will rescue and of the Virgin of the Diligence will continue to meet its financial commitments established for the taxpayer on the East Coast rail franchise, as it has done since the year 2015.
“The premium payments follow the flow of the contributors, as they currently do, and any suggestion that the taxpayer will be out of pocket is completely wrong.”