The Government today finally lost patience with rail firm First Great Western over the rough ride commuters get.

Transport Secretary Ruth Kelly issued the company a remedial notice - the first ever - ordering it to improve, after months of complaints from passengers over delays and overcrowding.

The company, ranked one of the worst performing in the country, responded with a £29m package for passengers to cut cancellations and improve services, as well as an increase in compensation from next year.

The £29m investment includes £5m spent on improvements to the London and Thames Valley fleet.

A further £7m will be spent enhancing the Customer Information System (CIS) at stations including Oxford.

The bulk of the £5m will be spent refurbishing the two- and three-car Turbo trains, some of which are now 15 years old.

Work will start this year and finish in 2011. An additional High Speed Train will also be provided.

Last night Oxford West and Abingdon MP Evan Harris said: "The company can think itself fortunate it has not had its franchise removed entirely.

"The commuter service between Oxford and London has been too poor for too long."

Zahra Akkerhuys, a spokesman for passenger group Ox Rail Action, said: "This is clearly a massive rap on the knuckles for First Great Western for its poor performance.

"We are pleased to see that Transport Secretary Ruth Kelly is taking steps to address the major problems the company is facing."

Mrs Akkerhuys added: "The Turbos are in a shocking state and in need of refurbishing.

"They often smell bad because the toilets are malfunctioning, and the heating controls are broken.

"Upgrading customer information at Oxford is sorely needed because at the moment passengers are given conflicting information about the same train on three different boards.

"My train was late again this morning by seven minutes. What we really want to see is trains running on time."

Andrew Haines, FGW chief operating officer, said: "We've put together a robust and realistic plan that sets out our broader vision to re-establish the First Great Western franchise as delivering good performance and benefits to all its customers, stakeholders and the wider regions, which it serves."