FGW saw off rival bidders National Express and Stagecoach by also promising to install CCTV, increase parking spaces, and to improve the track between Reading and Paddington for a new fleet of high-speed trains, the Government said yesterday.

The news provides relief for West Berkshire Council, which has been working with First Great Western for months on plans to replace the bus station and car parks in Market Street and Station Approach into a piazza surrounded by buildings up to five-storeys high. Councillors will choose a developer for this scheme tonight – four months ahead of schedule.

The £1.1bn contract starts next April and runs for 10 years, and includes better customer information, and automatic ticket gates. Newbury is one of 29 stations earmarked for improvement.

Transport Secretary Alistair Darling said: "This award will deliver improvements in the service to passengers as well as a good deal for the taxpayer. It will increase capacity into London during peak times, refurbish carriages, improve reliability and provide investment in stations make them more attractive and secure.

"This will raise the quality of passenger journeys and ensure that services and facilities are in place where they are most needed - now and in the future."