West Coast rail row: Prime Minister must intervene, says Sir Richard Branson

• Branson has offered to run the route for free to let the decision awarding the franchise to FirstGroup to be re-examined

• More than 100,000 members of the public have signed a celebrity-endorsed petition supporting the status quo

• Sir Richard has claimed FirstGroup’s bid will lead to ‘almost certain bankruptcy’

The Virgin boss has offered to effectively run the route for free to allow the decision awarding the 13-year franchise to FirstGroup to be re-examined.

Meanwhile Labour has urged Transport Secretary Justine Greening not to sign off the contract until MPs have been able to scrutinise it in detail.

The controversial changes saw more than 100,000 members of the public signing an online petition supporting the status quo in a campaign supported by double Olympic champion Mo Farah, Apprentice star Lord Sugar and celebrity chef Jamie Oliver.

Sir Richard, who has claimed that FirstGroup’s bid will lead to “almost certain bankruptcy”, said Virgin Trains and Stagecoach would operate the joint venture on a not-for-profit basis or donate profits to charity if the franchise needed to be extended beyond December for a few months to allow Parliament to investigate the decision.

“I think that the person that can really intervene to try to get some sense into the Department for Transport is the Prime Minister and the Prime Minister is currently on holiday, the Chancellor is on holiday and we would like things delayed by a month or so,” he said today.

“If, as a result of that, it means that the handover is delayed we would obviously be very happy to run it on a not for profit basis.”

Labour said MPs had been denied the chance to raise concerns about the deal because it was announced during the Commons summer recess.