The preferred bidders for work on the London Underground have received assurances from the government that their public-private partnership deals will not be affected by the collapse of Railtrack.
Tubelines and Metronet say government officials have told them that it is business as usual as far as LU is concerned. The contracts are expected to be signed next year.
But industry sources said Railtrack's demise will give weight to London mayor Ken Livingstone's argument that the PPP is not the best way to improve the Tube.
"All this does is give Ken more ammunition in his fight. People will start to believe he is right," said an insider.
Transport for London, the mayoral office's transport arm, says its campaign to stop the part-privatisation of the Tube has received a boost from the Railtrack debacle, which it believes has damaged the credibility of the private sector's claim that it is more efficient than the public sector.
