A radical plan to “renationalise” commuter trains into London was dramatically dumped today, sparking anger and warnings of higher fares.

Transport Secretary Chris Grayling threw out a blueprint – backed by Conservative and Labour mayors – for the publicly run Transport for London (TfL) to take over suburban services from private firms.

He formally rejected the takeover of Southeastern services from 2018 – with the axe also expected to fall on later plans to switch the Southern and Great Northern franchises.

Mr Grayling said he was not prepared to risk a shake-up that would be the “biggest restructuring since the 1920s”, when TfL had no plans for inevitable rising passenger numbers.

But Bob Neill, the Conservative MP for Bromley and Chislehurst, in Kent, described Southeastern as “wholly discredited” – and condemned the decision as “a complete cop-out and failure”.

“It makes no sense at all as far as rail users in my constituency or I are concerned,” he told Mr Grayling.

And Sadiq Khan, the Labour London Mayor, said it would mean higher fares because Southeastern passengers would no longer fall under his plans to freeze TfL charges.

He said commuters would be “bitterly disappointed” – pointing out the devolution plan, originally proposed by former Mayor of London Boris Johnson, enjoyed cross-party support.

Mr Khan said: “TfL have proved over and over again that when they have control of suburban lines there are more frequent trains, fewer delays and cancellations, more staff at stations and fares are more affordable.

“Just look at the London Overground – which went from being one of the worst lines in the country to one of the best once TfL took control.

“Rail devolution isn't party political – we have support from MPs and councils from all parties in London, from business leaders and representative and even from councils outside London like Kent and Surrey, who know commuters will get a better service.”

Although the Government had refused to describe the plan as renationalisation, rail experts had agreed it effectively was a return to state control.

It would probably have been most popular on the Southern franchise, where passengers have suffered many months of strikes, delays, cancellations and chaos.

But, in an interview with the London Evening Standard, Mr Grayling claimed there was a danger of “deckchair shifting” with no real improvement for passengers.

He also warned of a potential conflict between London’s needs and those of passengers from Kent and East Sussex, because long-distance and local trains share the same tracks.

“If you live in Guildford, where’s the democratic accountability?” he asked. “Why should the Mayor of London be responsible for a train from Guildford or Dorking?”

Mr Grayling spoke as he confirmed well-trailed plans to make Network Rail share responsibility for Britain’s railway tracks with the private train operating companies.