Top-rated publicly run East Coast is to get new high-speed trains in a government-backed deal that will create 730 jobs.

Rail union RMT welcomed the £2.7 billion state investment but warned that it risked being yet another taxpayer giveaway rail "rip-off merchants" if the franchise is handed back to profiteers.

Nearly 500 carriages will be built at Hitachi Rail Europe's factory in Newton Aycliffe, Co Durham, said Transport Secretary Patrick McLoughlin.