Prime Minister Gordon Brown warned troubled train firm First Great Western today that it will lose its contract unless it improves its service.

He told the Oxford Mail: "As far as First Great Western is concerned the company is now required to produce a remedial plan in order to set out how it's going to get its performance back on track.

"The Secretary of State then has the power to take away the franchise if they don't implement it. We are determined to be on the side of the passengers."

Last month, First Great Western was ordered by Transport Secretary Ruth Kelly to deliver a £29m improvement package to sort out its services between London, the Thames Valley, the west of England and South Wales.

Only 83 per cent of First Great Western services arrived on time in the last quarter for which statistics are available, compared with a national average of just under 91 per cent.