Three Department for Transport officials involved in the now-scrapped West Coast rail franchise competition have been suspended, the department said today.

The competition to run trains on the West Coast Main Line was cancelled following the discovery of "significant technical flaws" in the way the franchise process was conducted, at a cost of £40m.

In the early hours of Wednesday morning it was revealed that the DfT will no longer be awarding a franchise contract to run the West Coast service to FirstGroup when the current franchise expires in December.

A DfT spokesman said: "Three officials involved in the West Coast franchise competition were today suspended by the Permanent Secretary while the full facts are established. No further details will be issued at this time about the suspensions."

Speaking on Wednesday morning Patrick McLoughlin, the transport secretary, refused to say sorry for the debacle, pinning blame of Department for Transport officials.

"I'm not going to apologise for the terrible mistake that has been made by the Department," he said.

"I want to make sure what lessons need to be learnt from what went wrong with this have not been repeated in those particular franchises.

"I want to make it absolutely clear that neither FirstGroup nor Virgin did anything wrong. The fault of this lies wholly and squarely with the Department for Transport.

McLoughlin was not transport secretary at the time the initial decision was taken, but was moved to the job in the recent cabinet reshuffle.

In his cabinet shake-up David Cameron moved Justine Greening from the DfT to the international development department. All the other Tory ministers in the DfT were also moved out of the department at the same time. Lib Dem Norman Baker remained.

The now scrapped deal would have seen Sir Richard Branson's train company lose its West Coast franchise.

Sir Richard had mounted a legal challenge to the decision by the Department for Transport (DfT) to award a new 13-year franchise for the West Coast not to Virgin Rail but to rival transport company FirstGroup.

The mistake is a huge embarrassment for the government, coming the day after Ed MIliband sharply criticised it for performing multiple U-Turns and for being "incompetent".

Speaking this morning the Labour leader described the West Coast Main Line decision as a "fiasco".

Miliband told BBC Radio 5 Live: "When you look at the latest fiasco with the West Coast Main Line - another Government screw-up, another Government mistake, another case of them blaming someone else, apparently they are saying it is the fault of their civil servants - I think competence is an issue."

Loading Slideshow...
  • Labour Party leader Ed Miliband kisses his wife Justine

    Labour Party leader Ed Miliband kisses his wife Justine after delivering his keynote speech to delegates at Manchester Central during the third day of the Labour Party Conference in Manchester. Picture date: Tuesday October 2, 2012. Photo credit should read: Dave Thompson/PA Wire

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband kisses his wife Justine Thornton after delivering his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Christopher Furlong/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference at Manchester Central on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Christopher Furlong/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband and his wife Justine Thornton laugh in stage after he delivered his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Christopher Furlong/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband is joined on stage by wife Justine Thornton as acknowledges the applause after his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband is joined on stage by his wife Justine Thornton as acknowledges the applause after his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Annual Conference 2012

    Labour Party leader Ed Miliband delivers his keynote speech to delegates at Manchester Central during the third day of the Labour Party Conference in Manchester.

  • Labour Annual Conference 2012

    Labour Party leader Ed Miliband delivers his keynote speech to delegates at Manchester Central during the third day of the Labour Party Conference in Manchester.

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband acknowledges the applause as he delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Annual Conference 2012

    Labour Party leader Ed Miliband delivers his keynote speech to delegates at Manchester Central during the third day of the Labour Party Conference in Manchester.

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband walks on stage to deliver his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband is expected to announce a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Annual Conference 2012

    Labour Party leader Ed Miliband delivers his keynote speech to delegates at Manchester Central during the third day of the Labour Party Conference in Manchester.

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Annual Conference 2012

    Labour Party leader Ed Miliband delivers his keynote speech to delegates at Manchester Central during the third day of the Labour Party Conference in Manchester.

  • Labour Annual Conference 2012

    Labour Party leader Ed Miliband and his wife Justine arrive at Manchester Central ahead of his keynote speech to delegates during the third day of the Labour Party Conference in Manchester.

  • Labour Annual Conference 2012

    Labour Party leader Ed Miliband and his wife Justine arrive at Manchester Central ahead of his keynote speech to delegates during the third day of the Labour Party Conference in Manchester.

  • Labour Annual Conference 2012

    Labour Party leader Ed Miliband and his wife Justine arrive at Manchester Central ahead of his keynote speech to delegates during the third day of the Labour Party Conference in Manchester.

  • Labour Annual Conference 2012

    Labour Party leader Ed Miliband and his wife Justine arrive at Manchester Central ahead of his keynote speech to delegates during the third day of the Labour Party Conference in Manchester.

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband stands under back stage lighting during the annual Labour Party Conference on October 02, 2012 in Manchester, England. Mr Miliband is due to deliver his keynote speach to delegates this afternoon where he is expected to announce a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Leader Ed Miliband and wife Justine Thornton arrive at the conference centre on October 02, 2012 in Manchester, England. Mr Miliband is due to deliver his keynote speach to delegates this afternoon where he is expected to announce a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Leader Ed Miliband and wife Justine Thornton arrive at the conference centre on October 02, 2012 in Manchester, England. Mr Miliband is due to deliver his keynote speach to delegates this afternoon where he is expected to announce a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • BRITAIN-POLITICS-LABOUR

    Britain's Opposition Labour party leader Ed Miliband (R) and his wife Justine arrive for the third day of the annual Labour Party Conference in Manchester, north-west England, on October 2, 2012. Miliband is expected to address the conference later Tuesday. AFP PHOTO/PAUL ELLIS (Photo credit should read PAUL ELLIS/AFP/GettyImages)

  • BRITAIN-POLITICS-LABOUR

    Britain's Opposition Labour party leader Ed Miliband (R) and his wife Justine arrive for the third day of the annual Labour Party Conference in Manchester, north-west England, on October 2, 2012. Miliband is expected to address the conference later Tuesday. AFP PHOTO/PAUL ELLIS (Photo credit should read PAUL ELLIS/AFP/GettyImages)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Leader Ed Miliband and wife Justine Thornton arrive at the conference centre on October 02, 2012 in Manchester, England. Mr Miliband is due to deliver his keynote speach to delegates this afternoon where he is expected to announce a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)

  • BRITAIN-POLITICS-LABOUR

    Britain's Opposition Labour party leader Ed Miliband (R) and his wife Justine arrive for the third day of the annual Labour Party Conference in Manchester, north-west England, on October 2, 2012. Miliband is expected to address the conference later Tuesday. AFP PHOTO/PAUL ELLIS (Photo credit should read PAUL ELLIS/AFP/GettyImages)

  • Labour Conference Focuses On Leader's Speech

    MANCHESTER, ENGLAND - OCTOBER 02: Labour Party leader Ed Miliband acknowledges the applause as he delivers his keynote speech to delegates during the annual Labour Party Conference on October 02, 2012 in Manchester, England. During his speech Mr. Miliband announced a series of proposals for changes to the education system, unveiling plans for a new qualification in the form of a technical baccalaureate, and pledging to transform the lives of the 'forgotten' 50% of young people who do not go to university. (Photo by Dan Kitwood/Getty Images)