A new train intended to cut overcrowding on the West Coast Main Line is to sit gathering dust, following a row between Virgin Trains and the Government.

The Pendolino tilting train, similar to those already running on the Birmingham to London route, has been delivered to a Virgin depot in Liverpool.

And three more trains - along with 62 carriages to be added to the existing fleet- are due to arrive next year.

But Virgin, which runs West Coast Main Line services from London to Birmingham and Manchester, is refusing to use the trains or carriages.

The rail operator told Ministers back in 2008 that it could not justify the cost of adding them to its services unless its franchise was extended for two years, beyond the current cut-off point of April 2012.

This led to a furious row with Ministers, and former Labour Transport Minister Tom Brake accused Virgin of attempting to “blackmail” the government.

Despite a change of Government, the two sides have still failed to come to an agreement.

As a result, the train has been delivered - but will not be used.

Instead, the Department for Transport has told other rail companies they are welcome to borrow the Pendolino if they want it, once extensive testing of the new train is completed in July 2011.

Rail Minister Theresa Villiers said: “The delivery of this new Pendolino demonstrates that the Government is already starting to deliver on the commitment we made last week: to introduce 2,100 new carriages on to the rail network by 2019.

“As soon as this train completes all its necessary testing and accreditation, it will be available for lease by any train operator who wants to increase the service they provide for their customers. From April 2012 it will form part of the rolling stock for the new West Coast Main Line franchise.”

The Department for Transport did not believe giving Virgin a two-year extension on its franchise without allowing other rail companies to submit their own proposals would provide good value for money for taxpayers, a spokesman said.

Under the current arrangements, Virgin will be invited to bid for the chance to continue running West Coast Main Line services after 2012, but other firms will also be able to submit rival proposals.

A Virgin Trains spokesman said: “We submitted a proposal to the Department for Transport which included a number of things, including bringing these trains in more quickly, but that proposal was rejected.”

Although there are now three services between London and Birmingham an hour in both directions, some trains can still be overcrowded including services out of Euston on Friday evenings.