Firstgroup and Virgin are combining to push back against a government clampdown on some of the last private train firms operating the UK’s railway tracks.

So-called open access is a lesser-used model in which firms shoulder commercial risk but take the entire share of any profit. It is viewed as a success story by many in the industry for its ability to boost competition, stimulate demand, and bring down fares.

Since Firstgroup’s subsidiary Lumo launched in 2021, around 6m more passenger journeys have taken place on the East Coast Mainline than when it was operated solely by LNER.

But services such as Lumo and Hull Trains are facing greater restrictions under Labour’s new transport secretary, Heidi Alexander, who has ordered the regulator, the Office of Rail and Road (ORR), to take a sterner stance when approving applications for new routes.

In a letter to ORR chair Declan Collier earlier this month, Alexander wrote: “There is a balance to be struck to ensure the benefits provided by open access operators outweigh the impacts they have on taxpayers and the ability to operate the network efficiently … such as the level of revenue they can abstract from contracted services and the associated implications for taxpayers.

“I wish to see the impacts on the taxpayer and … potential congestion on the network given primacy when considering open access applications,” she said.

Industry groups have warned open access services would “wither on the vine” as a result, with Alexader’s approach marking a shift away from what Labour unveiled as part of its sweeping reform of the UK’s railways.

Firstgroup is launching a new report into the benefits of open access at an event in London on Monday evening.