Ok these ideas does have its faults (such as splitting the Pendo stock between two franchises, and some issues with depots) but I thought I'd suggest them anyway...
With the aim of having fewer franchises and therefore fewer associated costs, instead of simply merging TPE and Northern how about either of the following?
1) "Great Northern and Scottish Railways" - TPE + Northern + Services from the North to London (which would mostly run semi-fast/fast in the North, and pretty much non-stop further south).
Then merge the West Midlands franchise with West Coast services from the Midlands, and likewise with the East Midlands.
This idea turns five franchises into three.
2) * "London West Coast & Midlands Rail" -merge West Midlands with West Coast
* "London East Coast & Midlands Rail" - merge East Midlands with East Coast
Both of these to include local and interurban services along the length of the franchise, so the LWCM franchise would include TPE NW services and LECM local services in Yorkshire and the North-East
* "Cross Country Rail" - an East-West operator, so existing services plus Norwich-Liverpool + most of the TPE routes.
This idea turns 7 franchises in 3, and might reduce the subsidy needed for the XC franchise by adding profitable routes across the Pennines.
Both ideas would also allow (if the was a desire for it) vertical integration.
With the aim of having fewer franchises and therefore fewer associated costs, instead of simply merging TPE and Northern how about either of the following?
1) "Great Northern and Scottish Railways" - TPE + Northern + Services from the North to London (which would mostly run semi-fast/fast in the North, and pretty much non-stop further south).
Then merge the West Midlands franchise with West Coast services from the Midlands, and likewise with the East Midlands.
This idea turns five franchises into three.
2) * "London West Coast & Midlands Rail" -merge West Midlands with West Coast
* "London East Coast & Midlands Rail" - merge East Midlands with East Coast
Both of these to include local and interurban services along the length of the franchise, so the LWCM franchise would include TPE NW services and LECM local services in Yorkshire and the North-East
* "Cross Country Rail" - an East-West operator, so existing services plus Norwich-Liverpool + most of the TPE routes.
This idea turns 7 franchises in 3, and might reduce the subsidy needed for the XC franchise by adding profitable routes across the Pennines.
Both ideas would also allow (if the was a desire for it) vertical integration.