THE Government was coming under increasing pressure tonight to renationalise the main East Coast rail line after operator National Express said stalling revenues had put more pressure on its struggling UK rail business.

The franchise for trains between London and Edinburgh saw underlying revenue growth of 0.3 per cent in the first three months of 2009, compared with 9 per cent growth last year.

National Express won the East Coast Main Line deal in 2007 before recession struck and must pay the Government £1.4 billion over the life of the franchise, which ends in 2015.

But the firm said the terms were ''agreed in a very different economic climate'' and it does not receive revenue support from the Department for Transport (DfT) for the franchise until the end of 2011.

Shares in National Express fell 7 per cent today as the group looks at ways to ease the terms of the deal, amid recent speculation that it could even walk away from the franchise.

''The group is engaged in regular discussions with the DfT, which include the impact of the recession on the East Coast franchise,'' it said.

Labour MPs tonight met transport minister Lord Adonis to discuss the future of the franchise, which some warned was ''collapsing''.

John McDonnell (Hayes and Harlington) said: ''The only solution is to bring it back into public ownership.''

Bob Crow, general secretary of the Rail Maritime and Transport (RMT) union supported his call, adding: ''If reports of the collapse of the East Coast franchise are true, it gives the government a golden opportunity to renationalise the service.

''Rather than plugging in the life support machine for National Express, ministers should be seizing the chance to return this big section of the rail network to full public ownership and control.

''RMT has no time for private companies who promised the earth when they took on these franchises and who are now going cap in hand to the government, pleading poverty.

''They saw the railways as a fast route to an easy profit at the taxpayers' expense and now is the time to get shot of them.''