Sir Richard Branson's train company Virgin Rail has lost its West Coast main line franchise, with transport company FirstGroup taking over from December, the Government announced today.

Announcing the new franchise winner, Rail Minister Theresa Villiers said the new franchise would deliver "big improvements for passengers, with more seats and plans for more services''.

But the RMT transport union warned of "massive cuts to jobs and passenger services and huge increases in fares".

Virgin has operated the West Coast line for 15 years, introducing tilting high-speed Pendolino trains to the route and increasing passenger levels from around 13 million a year in 1997 to around 31 million a year now.