First Great Western is to continue running the train service between the south west and London for at least the next 23 months.
The Department of Transport has also announced there will be 2 new sleeper carriages for services between Cornwall and London and more trains will be fitted with free wi-fi.
The Government has said ongoing improvements to local stations, including Exeter Central and Newton Abbot, will continue.
First Great Western also runs services from London to the Cotswolds and south Wales.
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