TRANSPORT chiefs have ordered a review of rail services in the North-East which could lead to cutbacks in the number of trains and an increase in fares.

The Strategic Rail Authority (SRA) is appointing consultants to look at services provided by the Northern Rail Franchise, which includes trains previously run by Arriva Trains Northern and First North-Western.

It is understood the review will recommend cutbacks to reduce the £350m-a-year subsidy ploughed into the franchise.

The organisation operates 5,000 trains, carrying more than a million passengers a day, and runs from the Midlands to Manchester, Yorkshire, Newcastle and Carlisle.

The SRA denied reports that the review was secret and said stakeholders had been informed in June 2003.

A spokesman for the authority confirmed a review would take place looking at issues such as the number of trains operating, passenger needs and fare prices.

He said: "For the first two years of the franchise, the existing level of services would continue while we conduct the review.

"It is going to look at a whole level of services that would be appropriate for each and every route.

"It will also look at fare levels as part of that and it might result in a change to services.

"Could that mean a loss of services? Yes, it could."

The SRA said the public would be consulted on recommendations in the summer. A final decision will be made by the Department of Transport, possibly for the December 2006 timetable.

Bob Crow, general secretary of transport union RMT, said: "Commuters and rail workers right across the North of England have already suffered more than enough cuts."

Transport charity Transport 2000 said by cutting services, Britain was going against the trend in Europe.