Four train companies have begun legal action against the government for costs incurred during the procurement process for the Great Western rail franchise.

The scrapping of the procurement process following a move by the government to re-evaluate the bidding process in light of the public sector failings behind the West Coast mainline, resulted in bidders losing millions.

FirstGroup, Stagecoach, Arriva and National Express have moved to undertake legal action against the government in a bid to recoup losses, with the government being potentially liable for as much as £40 million in costs.

The government has played down the issue of legal action in the past, with Transport Secretary Patrick McLoughlin saying in January: "In keeping with the relevant invitations to tender, which made clear that bidders are responsible for their own costs, the secretary of state does not believe it would be appropriate to reimburse bidders."

The success of legal action is further called into question with the bidding tender itself detailing that:“Each bidder shall be responsible for all costs, expenses and liabilities incurred by it in connection with the Great Western franchise letting process, whether or not its bid and/or associated negotiations are ultimately successful or the process is subsequently varied in any way or terminated."

The BBC has revealed that legal proceedings are expected to hold until the end of March, in order to allow for the offer of compensation.

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