A PLANNED rail strike over the Bank Holiday which would have crippled services and led to widespread travel chaos has been called off after Network Rail tabled a new pay offer.

Commuters across York, North and East Yorkshire were braced for a 24-hour strike from 5pm on Monday, but this afternoon unions have announced that the action has been suspended following a new pay offer, made during four days of talks at the conciliation service Acas.

Rail companies had already started cancelling services next week and warned passengers not to travel.

RMT 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."

Manuel Cortes, general secretary of the Transport Salaried Staffs Association (TSSA), said: "Our negotiating team at Acas has received a revised offer from Network Rail.

"As a result of this, they have suspended the planned industrial action, pending the outcome of a meeting of our workplace representatives next week."

Lawyers for Network Rail halted plans to take legal action against TSSA in the light of developments.

Bruce Carr QC, for Network Rail, told a judge at a High Court hearing in London that Network Rail was not proceeding with an application for an injunction.

He told Mr Justice Jay: "There has been progress."