THE long-awaited decision on who will run the East Coast Main Line was delayed yet again yesterday.

Franchise bidders GNER and Virgin were due to learn last July who had won the right to run services on the line, which links the North-East with London, but the decision has been dogged by hold-ups.

Virgin and present incumbent GNER must now come up with amended proposals by April 17. Railtrack, which has responsibility for Britain's rail infrastructure, said a decision on the winner would be announced "later".

News of the latest delay came on the day cash-strapped Railtrack issued its own "must-do-better" report after receiving an early release of £1.5bn of Government money. The company admitted it had been "guilty of over-promising and under-delivering".

In return for the £1.5bn - which had not been due to be handed over until 2006 - the company agreed to let others take a more prominent role in rail projects, including a new joint-venture arrangement to relieve Railtrack of the sole responsibility of a £2.8bn upgrade of the East Coast line.

Railtrack also gave approval for the appointment to its board of a director who will champion passengers' interests.

The £1.5bn is part of what the Government said was a £7.5bn of rail measures announced - although most are schemes that have already been revealed.

Outlining the package, Deputy Prime Minister John Prescott said it represented a "fresh start for our railways".

But he did warn that passengers must expect some disruption to services while improvements on the railways are carried out.

The Conservatives accused Mr Prescott was strangling the rail industry with "dithering, meddling and blame".

Yesterday's deal means that Railtrack will not take up its option to build phase two of the Channel Tunnel rail link from north Kent to St Pancras in London, which passes to other private firms.