- Department of Transport hit with savings of 21 per cent between now and 2015
Rail commuters will be hit with increased annual fare hikes from 2012.
At present the annual increases in regulated fares, which include season tickets, are capped at 1 per cent above the retail price index (RPI) inflation level.
But today Chancellor George Osborne said that from 2012 the cap will be RPI plus 3 per cent which – if introduced for next January – would have meant season tickets going up almost 8 per cent.
Mr Osborne said the rise was needed to pay for new trains and improve passenger conditions.
Bob Crow, general secretary of the RMT transport union said: ‘The massive increase in rail fares will drive people off the trains and onto the roads and it looks like the profits of the private rail companies will be ring fenced while upgrades are kicked into the long grass, forcing passengers to pay through the nose to travel on creaking, overcrowded services.’
But Mr Osborne said the amount of money for transport projects over the next four years would be greater than for the previous four years.
He confirmed that the £16bn cross-London Crossrail scheme would go ahead and listed a number of other key projects that would escape the axe.
These included Manchester to Liverpool rail electrification, widening schemes on the M25, improvements to the M1, M4, M5 and an upgrading of the A11 in East Anglia.
Campaign for Better Transport chief executive Stephen Joseph said: ‘The Chancellor’s statement focuses on large-scale transport projects but the reality is cuts in funding for everyday transport.
‘These projects should not be used as a smokescreen to cover up service cuts and rocketing fares on our buses and trains. Understandably, this will enrage people across the country who rely on these essential services
‘We are appalled at the Government’s plan to allow rail fares to rise so far above the inflation rate. Hard-working commuters who depend on the train face paying over £1,000 more for their annual season ticket by the time of the next election.
‘These eye-watering rises are unacceptable at a time when we should be growing the railways in order to tackle congestion on our roads and reduce carbon emissions in line with Government targets.’
Tags: Osborne's cuts, Spending Review
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October 30th, 2010 at 6:06 amAnita Brook’s Blog: How with the spending cuts affect your business « FMWF says:
[...] Travel: With a 3% rise above inflation for regulated rail fares, from 2012 for three years, the UK’s commuters are going to feel the pinch. News this week states that from 2011 many fares will raise by 5%, with some routes as much as 10%, so 2012’s additional rise will be all the more unwelcome. (read FMWF’s story here) [...]