That might be the case. It would very much depend on DafT want to put in the franchise. It also very much depends on whether anyone then bids to run the franchise.
To use an extreme example, if the GW franchise included the requirment to run trains to Cardiff via Bristol at 2300, 0100 and 0300, and trains to Plymouth at midnight and 0200, then it's likely that the terms will have to reflect that these services will make a loss. Eithe rthe subsidy paid to the operator will be higher as a result, or the payments made to the government will be lower. Either way, it will cost government and taxpayers more to run the through the night trains.
It would be an intereting debate whether precious resources should be used to run all night services on main lines, or provide extra capacity in the North West, or subsidise extra trains to places like Whitby!
To use an extreme example, if the GW franchise included the requirment to run trains to Cardiff via Bristol at 2300, 0100 and 0300, and trains to Plymouth at midnight and 0200, then it's likely that the terms will have to reflect that these services will make a loss. Eithe rthe subsidy paid to the operator will be higher as a result, or the payments made to the government will be lower. Either way, it will cost government and taxpayers more to run the through the night trains.
It would be an intereting debate whether precious resources should be used to run all night services on main lines, or provide extra capacity in the North West, or subsidise extra trains to places like Whitby!