The borough's beleagured commuters are promised more seats, better reliability and fairer ticketing after the new franchise to run South West Trains was awarded last week.

The new franchise for the network, which is responsible for trains throughout the borough, was awarded to current holders Stagecoach by the Government, which demanded Oyster ticketing be part of the package.

Capacity on trains is set to increase by 20 per cent and the company has pledged to spend £40million on improving stations, with additional security planned.

Passengers will finally benefit from the Oyster ticketing system, which will be introduced by 2009 - a move welcomed by politicians who have been lobbying for its inclusion.

Rail Minister Tom Harris said: "This is a good deal for passengers and a good deal for the taxpayer. We want to build upon improvements in reliability and the major investment in rolling stock.

"Passengers across the franchise area are set to be the first outside London to benefit from smart ticketing. Travellers will also see improved performance and more security measures at stations."

Transport for London (TfL) Commissioner Peter Hendy said they welcomed the franchise's inclusion of Oyster.

He said: "The announcement that the new franchise includes Oyster ticketing and validation is great news for passengers. Six million people already use Oyster every day in London.

"It is vital we have an integrated ticketing system between mainline rail and TfL's tube, bus and DLR network in London, so passengers can enjoy the full benefits and convenience of Oyster. This is a major step towards fully integrated ticketing in London."

Twickenham MP Vincent Cable said: "I have often been critical of Stagecoach's management of SW Trains but there is something to be said for the devil we know rather than a new operator starting from scratch.

"What concerns me is that Stagecoach has accepted tough conditions that will be very difficult to meet, and still hope to make money. I am left wondering what is going to give; it is unlikely to be the company's profits. There is a really urgent need to reduce overcrowding and some of the proposals like double-decker trains seem exciting.

"I plan to speak urgently to the senior management of SW Trains to see what the franchise means for local services".

Richmond MP Susan Kramer said: "I am glad South West Trains has promised to improve the service. It is also crucial that we get Oyster Card use across the rail network in our area. It makes sense in the 21st century for technology to help commuters.

"I met with Network Rail last week and stressed the need to increase carriage capacity on our network. This is essential.

"Overcrowding caused by trains running short should become a thing of the past. If people are paying annual increases for their tickets they deserve a better deal when they get on a train as opposed to the crush that is often experienced at busy times."

London Assembly member for Richmond, Tony Arbour said: "I very much hope South West Trains delivers on the undertakings it has given, particularly with regard to station and rolling stock improvements.

"It has promised Oyster cards will be acceptable across the network. I hope it speeds up this process.

"There is no doubt that punctuality has improved recently, however I shall be seeking faster and more frequent services across Richmond."