MICK Cash, general secretary of the RMT rail union: "It is simply ludicrous to even contemplate re-privatisation when not only have there been two previous private sector failures on the East Coast route but when the public-sector rescue operation has been such a stunning success.”

Nic Burton, joint chairman of the Thirsk and Malton Green Party: “It is a disgrace that a minority government should make this perverse decision so near to an election."

Stockton South Conservative MP James Wharton: “This is good for commuters, will be good for our local economy and is great for Teesside with news that by 2020 a direct Middlesbrough connection will be established.”

Middlesbrough Labour MP Andy McDonald: “It is madness to flog the East Coast Mainline and is an insult to the current workforce as well as the trade Unions and Labour politicians locally and nationally who fought hard to keep the service in public hands.”

Stephen Catchpole, managing director of Tees Valley Unlimited: “We welcome the plans to run new direct services between London and Middlesbrough and Thornaby and the investment into stations and trains, although we have not yet seen the details.”

Transport Secretary Patrick McLoughlin: “[This is] a fantastic deal for passengers and for staff on this vital route and will give passengers more seats, more services and new trains"

Vicki Gilbert, chair of Tyne and Wear Public Transport Passenger Users Group: “We are disappointed that the Government has pushed ahead with returning this vital rail service to the private sector as it will mean a much worse service for us all.”

Alex Cunningham, Stockton North Labour MP: “Instead of money finding its way back to the taxpayer or being invested in better services, it will be taken out of the system and handed over to Virgin and Stagecoach shareholders.”

Sir Richard Branson: "We are excited to work with East Coast's great group of talented people, who we know will bring to life that famous and much-loved Virgin spirit under the new franchise."

Stagecoach group chief executive Martin Griffiths: "A passion for customers, employees and the community is at the heart of our plans for the franchise. “