No more crippling fare increases: Transport chiefs urge Treasury for restraint

 
Fares rise: research shows average train fares have increased by more than 26% since the start of the recession

London transport chiefs today came under mounting pressure to avoid sharp fare rises as they battle with the Treasury to protect commuters.

Sources say Transport for London is pushing for a real-terms freeze in the cost of commuter travel on rail, Tube and buses when new tariffs come into effect in the New Year.

If Chancellor George Osborne agrees to limit the rise in national rail fares to the 3.1 per cent rate of inflation — instead of the planned 4.1 per cent — this could allow TfL to follow suit.

The full rise of 4.1 per cent — retail price index inflation plus one per cent — in January would hit hard-working commuters at a time when they are also contending with rocketing fuel bills.

It would add £192 to the price of a season ticket from Reading to London, including a travelcard for Tube and bus use, taking the cost to £4,896.

A similar fare from Rochester, with a travelcard, would rise by £214 to £5434, while an annual zones one to six travelcard would hit £2,320, an increase of £96.

Sources say an announcement on TfL fares may be delayed to allow a deal to be thrashed out before the Chancellor’s budget update on December 4.

TfL will push for London’s annual subsidy from the Treasury to enable fares to be held down.

It is also pushing for tax breaks on travel, under which commuters would make substantial savings by paying for season tickets through pre-tax salary schemes, similar to the cycle to work and childcare voucher initiatives.

Using such a scheme, employees could save £251 on a £784 bus pass while employers would pay £108 less in national insurance contributions.

Transport bosses argue that, as the scheme is targeted at commuters, it would benefit those in work and contribute to economic growth.

The London Assembly said London passengers had been hit by fare increases of 33 per cent since the Mayor took office in 2008. Bus users have been disproportionately hit with single fares increasing by 55 per cent — from 90p to £1.40 — over five years.

Assembly transport committee chair Valerie Shawcross said: “We are asking the Mayor to consider the needs of Londoners as he makes vital decisions on the level of fares for the coming year.

“Half a million working Londoners are living on the breadline — just some of the 28 per cent of Londoners living in poverty.

“Further fare increases on their daily commute will hit these vulnerable people hardest and reduce the chance of others finding viable job opportunities. Bus users have faced particularly steep fare climbs of over 50 per cent, while Tube passengers have seen fares rise six times faster than wage increases over the last five years.

“We’re calling on the Mayor to be fair to Londoners and give them a break from these inflation-busting annual increases.”

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