GRAND Central Railway has rejected claims it will run its planned services on the cheap.

The York-based firm, which last week won provisional approval from the Office of Rail Regulation (ORR) to operate three daily services from the North-East to London, said unlike rival GNER, its trains would be new and not refurbished.

It also said it would pay the same amount as GNER to operate on the rail network.

GNER, which saw the ORR provisionally turn down its plans for additional services, linking Leeds and London, has said that as an open access operator, Grand Central's costs would be much lower than its own, and has accused it of "revenue raiding" from franchised operators.

Ian Yeowart, managing director of Grand Central, said: "Our new services can be delivered very soon, after a final decision, and will operate with new, not 25-year-old, rolling stock."

He added: "Grand Central trains will pay exactly the same amount to be on the network as any additional trains GNER runs."

Mr Yeowart said he believed both firms' demands could be met by the ORR, which has extended the consultation period for representations in response to its recent rulings.