Privatisation-mad ministers were yesterday set to palm off flagship rail franchise East Coast to Eurostar, just after they sell off Britain’s shares in the cross-channel train company. 

Speculation is rife that the Department for Transport (DfT) is poised to announce its preferred bidder in the next few days, though a government spokesman denied the winner will be announced today.

Tipped for the contract is a joint bid between Keolis and Eurostar, both of which are majority owned by the French state.