Railway operator GNER has had its franchise on the East Coast main line extended - but only by two years until 2005.

GNER had been competing with Sir Richard Branson's Virgin trains in the hope of winning a 20-year franchise deal for the London to Scotland route.

But today Transport Secretary Stephen Byers said that it was ''premature'' to commit to a long-term franchise.

Updated: 16.15 Wednesday, July 18