Shapps delays decision on rail fare rise

 

After a torrid period for the Government, ministers have delayed the much-expected confirmation that they will allow rail firms to increase regulated fares by 1.6% from January.

The RPI inflation measure for July is traditionally used to set a cap for rises on regulated fares, such as season tickets, from the beginning of the coming year.

This is despite the Office of National Statistics states that it ‘does not meet the required standard for designation as a national statistic’.

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This year’s July RPI was 1.6%, compared to 1% for the official CPI inflation measure.

The Department for Transport said it was 'considering the rail fares package for January and will provide an update in due course'.

However, a statement from rail minister Chris Heaton-Harris hinted that ministers were merely delaying confirmation of what is likely to be an unpopular increase.

He said: 'We expect any rail fare rise to be the lowest in four years come January and any increase will go straight to ensuring crucial investment in our railways.

'Taxpayers have been very generous in their support to keep trains running throughout the Coronavirus pandemic and whilst it's only fair that passengers also contribute to maintaining and improving the services they use, a lower rise will help ensure the system returns to strength.

Campaigners appear to have taken the lack of a clear Government position as a sign that the 1.6% increase will be implemented.

Darren Shirley, chief executive of Campaign for Better Transport, said: ‘Today’s rail fare rise will do nothing to restore people’s faith in the railways. The Government must do more than just pay lip service to encouraging people to take public transport, it must now also provide the financial incentives to do so. Today’s fare rise is a missed opportunity to do just that.’

Labour warned of ‘yet more price hikes on the horizon for long-suffering rail commuters’.

Shadow transport secretary Jim McMahon said: ‘Decisions taken by Government Ministers are making rail travel unaffordable and discouraging people back on to the network which will be vital for getting the rail sector on a stable footing.’

Robert Nisbet, director of nations and Regions for the Rail Delivery Group, said: ‘Decisions about regulated rail fares, including season tickets, are taken by governments, who rightly make the choice about the balance between how much farepayers and taxpayers contribute.’

 

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