Posted 28th November 2011 | 1 Comment

U-turn expected on January rail fare increases

The government had said that the previous formula of RPI plus 1 per cent would become RPI plus 3 per cent for regulated fares in England for the next three years

The government had said that the previous formula of RPI plus 1 per cent would become RPI plus 3 per cent for regulated fares in England for the next three years

THE CHANCELLOR is expected to announce a u-turn on January's fare rises tomorrow, as part of his autumn statement.

The government had said that the previous formula of RPI plus 1 per cent would become RPI plus 3 per cent for regulated fares in England for the next three years, starting in 2012, but it now appears to have yielded to protests, at least for now.

The modified increase, restoring the previous formula, means that fares are now set to rjse by an average of 6.2 per cent in January instead of 8.2 per cent.

The government had also said that it wanted to reduce the amount of railway funding which comes from taxpayers -- at present roughly 50 per cent -- which was why the higher increases had been authorised. However, there had been growing protests, particularly from season ticket users.

The split of 50:50 between taxpayers and farepayers does not apply in Scotland, where the public purse contributes 74 per cent according to Transport Scotland, which has launched a controversial consultation about train services and franchising north of the border from 2014.

Some fares in England could have risen by as much as 13 per cent in the New Year, because the government has also restored the 'flex', which allows operators to increase selected fares by as much as another 5 per cent, so long as other fares are reduced to maintain the average set out by the formula.

Although the lower increase has not yet been officially announced, the Association of Train Operating Companies has already welcomed the reported change of heart.

Reader Comments:

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  • Lutz, London

    Passengers may protest, but they in mosts cases, particularly the principle revenue generating commuters, have no alternative. Traffic is also likely to continue to grow, so on balance this is just a postponement.

    The key aim is to achieve break-even in the key south east, and long distance sectors in the next three to four years. Once that is achieve, the operators in those sectors will have more control over investments.