Ananova:

Train company Connex is expected to be the first casualty of a shake-up of Britain's railway system.

The French-owned firm is expected to lose its south central franchise after a barrage of criticism over management and performance.

It follows the news that Railtrack is to receive an extra £855 million to improve safety in the aftermath of the Hatfield crash.

Connex is expected to lose the south central operating franchise for the next 20 years to the Govia group, which runs Thames Trains, but will retain its south-east franchise, which is not up for renewal.

Deputy Prime Minister John Prescott is expected to highlight the announcement as a sign of the Government's intention to improve the rail infrastructure.

The south central franchise covers Surrey and Sussex and services are due to continue to be run by Connex for at least the next year.

The operator, which is owned by the French conglomerate Vivendi, has been criticised by rail user groups for poor punctuality and dirty rolling stock and is currently ninth in the list of 25 rail companies.

It has pledged more than £1 billion to improve services but the franchise has been tipped to go to Govia, which is part-owned by the Go-Ahead company and also operates the Thameslink services from Luton to Brighton.