Vote 2010: Tories pledge to shake up railway franchises - VIDEO

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The line is currently in public ownership after operator National Express handed it back last year. The company had paid the Government 1.3bn in 2007 after it was surrendered by GNER.

Shadow Transport Secretary Theresa Villiers said the system "squeezed the franchises for as much money as it could" leading to the collapse of both, and pledged major changes to stop it happening again.

It comes as Labour promised their own reforms in their manifesto yesterday, such as welcoming bids from not-for-profit, mutual or co-operative enterprises and looking to remove "unfair barriers" that prevent such bids benefiting passengers and taxpayers.

The Tory manifesto, a 130-page hardback document, is billed as a blueprint for change and markets an invitation to join the government of Britain.

It intends to sum up four and a half years of policy work with the Big Society – as opposed to big government – at its core, telling voters they will be able to sack their own MP, run their own school, veto council tax rises, vote for police bosses and save local pubs and post offices.

Ms Villiers said the party intended to introduce both longer franchise contracts and greater powers for the Office of Rail Regulation.

"We will give passengers a one-stop-shop for complaints by expanding the role of the Office of Rail Regulation to create a powerful consumer-focused regulator.

"We will make 15- to 20-year train operating franchises the norm to create greater stability and encourage private investment in new capacity."

The manifesto also promises "radical change" with policies including a fuel duty stabiliser to limit the impact of spikes in fuel prices, a guarantee to see a GP in your area from 8am to 8pm, seven days a week, and a chance for taxpayers to own part of the banks they bailed out.

The Tory manifesto arrives hot on the heels of Labour's, which promised income tax rates would not rise, migrant workers would have to pass an English language test, paternity leave would be extended to a month, a 4-a-week "Toddler Tax Credit" and failing schools, police forces and hospital authorities could be taken over by successful ones.

Transport Secretary Lord Adonis also promised changes to the rail franchise system, with longer contracts and tough penalties for those who break them, but refused to accept this meant the system had failed.

"It is seeking to improve the franchise system. There has been a 40 per cent increase in the numbers travelling by

train in the last ten years. This is not a failure but a story of success."