THE Government is considering whether to terminate the franchise of the company which runs a busy rail line running through Waltham Forest.

The Department for Transport is deciding who should run the Chingford to Liverpool Street line in the wake of the debacle surrounding National Express over the renationalisation of the east coast mainline, which runs from London to the north of England and Scotland.

Lord Andrew Adonis, secretary of state for transport, said: "National Express operates rail services on the East Anglian mainline and associated commuter routes.

"The company has said it does not intend to default on its obligations in respect of these franchises.

"Notwithstanding this, the Government believes it may have grounds to terminate these franchises, and we are exploring all options in light of the group's statement.

"In the meantime, we expect National Express to meet its obligations on these franchises in full."

A National Express spokesman said:"We are meeting our contractual commitments on our East Anglia and c2c franchise would be subject to cross default.

"We remain fully committed to the continued successful operation of these franchises and our other businesses with the National Express Group."