FirstGroup has been given the go-ahead to compete with Virgin Trains on the East Coast Main Line.

The Office of Rail and Road (ORR) regulator granted approval for FirstGroup to launch open access services between Edinburgh, north-east England and London.

The ten-year deal will allow it to operate five trains a day each way from London King's Cross to Edinburgh, via intermediate stations at Stevenage, Newcastle and Morpeth from 2021.

Virgin Trains East Coast (VTEC) currently holds the franchise to run services on the line until at least March 2023.

FirstGroup claimed its trains would offer cheaper fares and free Wi-Fi, making them a better option than other rail services and air travel.

The company's chief executive, Tim O'Toole, said: "I'm pleased that the ORR has granted track access rights for our unique low-cost service between London, the north-east of England and Edinburgh.

"This is great news for passengers, as our new service will widen the choice of travel options between these cities and offer an attractive alternative to those available today.

"We will offer genuinely low fares at half the average price of today, while adding significant benefits to the UK economy."

He said the average fare would be "less than £25".

Stagecoach Group - which owns 90% of VTEC - criticised the decision to allow FirstGroup to run competing services.

Martin Griffiths, chief executive of Stagecoach Group, said: "We do not believe the granting of these services within a franchised system and without a level playing field is in the best interests of passengers, taxpayers or communities. "We will assess the ORR decision and implications in detail and review our options."