Train fares hiked despite manifesto promise
Commuters face a rise in rail fares following cuts to the transport budget despite promises in one coalition partner’s manifesto. A Liberal Democrat MP tells Channel 4 News the hike is “regrettable”.
The Department for Transport will reduce overall spending by 15 per cent in real terms, making savings of 21 per cent from our resource budget and an 11 per cent reduction in capital spending.
The government will increase the cap on regulated rail fares from the current retail price index (RPI +1) per cent to an average annual increase of RPI +3 per cent for three years from January 2012.
Because the government recognises the impact of relatively high inflation, it has decided to retain the RPI+1 per cent average cap for 2011.
But from January 2012, the annual increase will rise to RPI+3 per cent for three years. This means fares will increase in real terms by 10 per cent over the next four years.
This is despite the fact the one of the coalition partners pledged to cut rail fares prior to the 2010 election.
In their manifesto the Liberal Democrats promised to “cut rail fares, changing the rules in contracts with Train Operating Companies so that regulated fares fall behind inflation by 1 per cent each year, meaning a real-terms cut”.
‘Sorry’ for train fare hike
Liberal Democrat MP and transport minister, Norman Baker, told Channel 4 News he regretted the hike to rail fare prices.
“It’s very disappointing that we are having to raise train fares in this way,” he said.
“The nature of a coalition government it that you have to negotiate between two parties. We haven’t got a Lib Dem government, we’ve got a coalition government and what we’ve also got is a terrible inheritance in terms of finance.
“It is regrettable and I am sorry that train fares are going up, but the reality is we had a terrible economic legacy.
“But the spending review this week has been very good for transport and very good for rail in particular.”
The fare increase is to help the government pay for capacity improvements on the rail network to relieve overcrowding and improve passenger comfort.
Major projects include improvements to the Midland Main Line which links Leicester, Derby, Nottingham and Sheffield, with London. They will enhance the east coast mainline and its links to Yorkshire, the North East and Scotland.
Crossrail will go ahead to the original scope and the government will proceed with plans for a national high speed rail network, spending over £750m in the spending review period.