Sir Richard said all this would be possible if the Government allowed longer rail franchises of between 20 and 30 years which were linked to past performance and future investments.

Improvements would also come about if the Government engaged and encouraged private sector investment, delivered an effective regulatory system of Network Rail and evaluated the environmental benefits, and economic gains to the English regions, Scotland and Wales as part of any investment case.

He said that, within this partnership with Government, train operating companies would play a much larger role in timetable developments, train design and procurement, station and route developments and funding.

Sir Richard said: "With the strains on public finances increasing, I believe the private sector will be crucial in driving rail investment over the next 20 years.

"Private companies such as Virgin have already transformed Britain's trains into one of the most modern fleets in Europe. But the job isn't finished yet. We are running 21st century trains through crumbling 19th century stations and along track still in need of upgrading.

"The Government must not strangle this investment potential by having limited, short-term contracts that stifle innovation. The private sector is ready to go, but we need the right conditions and the green light to invest for the long term."

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