DEMONSTRATIONS have been taking place in London and other places this morning, in anticipation of today's announcement on January's increase in rail fares. The demonstrators have included the rail unions as well as transport campaigners, some of whom are calling for the railways to be renationalised.

The average rise in regulated fares is expected to follow the formula set down by the Government in 2010, which is July's retail price index plus 3 per cent. The last general increase, im January this year, was capped at RPI+1 per cent, but so far there is no indication that ministers are willing to follow suit for a second year running.

The chief executive of watchdog Passenger Focus, Anthony Smith, said: “With passenger satisfaction with value for money falling, the Government must think very carefully about how much regulated fares should be allowed to increase next January.”