The government have announced that National Rail fares in the UK will be increased by 6 per cent on average. The increase will come into effect in January 2012.
The average 6 per cent rail far increase has been reached by using July’s RPI (retail price index) of 5 per cent and adding 1 per cent on top. RPI is often used as a measure of the cost of inflation. In real terms, some fares may increase by just 1 per cent and some may increase by 11 per cent, but the wide variation in the potential price increase is not expected to be tied to improved services on the line.
The Chancellor, George Osbourne, originally planned to increase the cost of train travel by 8 per cent: RPI plus an additional 3 per cent on top. He was forced to backtrack after widespread concern among passengers and a pressure campaign by Fair Fares Now, a high-profile group launched by Michael Palin in January 2011. Britain already boasts the most expensive rail fares in Europe, and many people who commute to work by rail were thought to be concerned that they would not be able to afford to do so.
The Chancellor’s concession is temporary, and the higher figure of 8 per cent will be used to calculate rail fares from 2013 onwards.
The cost of using the London Underground, as well as London buses, will also increase by 6 per cent in January 2012 instead of the planned 7 per cent rise. From 2013 onwards, the 7 per cent figure will be used to calculate price increases. Ken Livingstone, mayoral candidate for London, said that Londoners needed costs to be cut.
A spokesperson from the Campaign for Better Transport charity, who launched Fair Fares Now, said that train fares were still a “heavy burden” on many commuters, and the fact that new prices would come into effect in January would hit hard in a month when many families are financially stretched. Stephen Joseph, a spokesman for the charity, said they would like to see the cap on increased fares extended through to 2014. The leader of the TSSA rail union, Manuel Cortes, accused Mr Osborne of being motivated by politics, adding: “Our gut feeling is that he is really more interested in helping Boris beat Ken for London Mayor next May.”
The new prices will cost £130 million to implement and will take effect from Sunday 2nd January, leaving train operators slightly over one month to change their fare leaflets and notices to reflect the change of plan.
More than £5 billion investment into British transport has also been announced, including £1 billion to be ploughed into the railway network. Mr Osbourne said that investment could potentially make another £20 billion available for the creation of new roads, a plan which has so far proven to be unpopular with the Campaign to Protect Rural England.
Mr Osbourne also confirmed that a planned increase in fuel duty of 3p per litre would be delayed until August 2012, an announcement which the RAC commended.