The line came under the management of the London, Midland and Scottish Railway (LMS) in 1923 and later British Railways in 1948. In the early 1960s, the line, along with the Leamington-Rugby line, was heavily used as a diversionary route while the West Coast Main Line was being electrified. However, the local passenger service was withdrawn on 18 January 1965, as a result of the Beeching Axe, and Kenilworth, Milverton and Avenue stations were closed. With Avenue station closed, a new connection was built the same year connecting the line to the former GWR Leamington station (previously only a siding had connected the former LNWR and GWR lines at Leamington). The Berkswell Loop was closed on 17 January 1969, after a freight train derailed, and the track was lifted the following year. In 1972, British Rail singled much of the line but retained some double track to form a passing loop at Kenilworth.