The strike that was set to bring British railways to a standstill next week has been called off after unions decided to suspend action to consider a new pay offer.

Network Rail tabled an offer to the unions on Thursday, the fourth day of talks at the arbitration service Acas, averting the strike that had been due to start on bank holiday Monday. The walkout would have seen more than 90% of passenger trains cancelled, including the biggest commuter and intercity services, as well as all freight trains.

The RMT said it was suspending action to consider the deal. Earlier, the smaller TSSA union announced it was calling off the strike.

The new offer from Network Rail is believed to be a two-year deal, with an absolute pay rise for all members both years, and a pledge of no compulsory redundancies. The original four-year deal was for a pay freeze and £500 bonus this year, then salaries pegged to inflation, with no guarantees against feared job losses beyond 2016.

The RMT’s general secretary, Mick Cash, said: “Following the Acas talks, RMT has received a revised offer that enables us to suspend the planned industrial action while we consult in full with our Network Rail representatives.”

The TSSA had called off its action earlier in the day, less than an hour before a legal challenge from Network Rail was due to be heard in the high court. The third union in talks, Unite, which has a few hundred rail members, said it would be consulting on the improved pay offer next week.

The track operator had been planning for fewer than one in 10 trains to run had the strike gone ahead. As well as huge disruption to passengers – including commuter services in London and major cities, as well as airport links – Network Rail feared major business contracts could haemorrhage from railway to road, including mail services and freight links serving the UK’s major delivery hubs.

The news that the strike is off will ease concerns about intensified road congestion as rail passengers were set to switch to their cars to join the traditional bank holiday traffic jams, which motoring organisations warned are still expected, particularly with people returning from the south-west on Monday.

Transport secretary Patrick McLoughlin said he was very pleased that the strike had been called off, adding: “The government has been working closely with transport operators, Highways England and local government on preparations to help manage the impact a national rail strike would have had on the network. We all welcome this news.”

All train services should now operate as normal, bar those already amended for planned engineering works. Virgin had announced it had cancelled all trains on the west coast line between London and Scotland for Monday and Tuesday but has now reinstated the services, after already offering refunds and advising passengers to rebook alternative travel for the weekend.



Coach firms have profited, however, with National Express selling tens of thousands of extra tickets for next week.



Meanwhile, the threat of a tube strike in London has emerged as both the RMT and the train drivers’ union Aslef announced they would ballot members over pay and rostering on the London Underground. New all-night weekend services on central tube lines will see staff forced to work night shifts from September. The traditionally moderate Aslef has not called a tube strike in 13 years.

Cash said of the proposed tube changes: “It is simply outrageous that management, in a mad dash to bulldoze through the mayor’s night tube vanity project, have smashed apart long-term agreements and have resorted to trying to bully staff into accepting roster changes at a local level. And the message from RMT is clear – we are not having it.”