Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Ministers urge Osborne to reduce steep rail fare rises

Nigel Morris,Andrew Grice
Thursday 24 November 2011 01:00 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

George Osborne is being urged by fellow ministers to scale back steep rail-fare rises due in the new year amid fears that the planned increases will force passengers back on to the roads.

Ticket prices are due to go up by an average of 8 per cent in January under a formula approved by ministers for above-inflation rises for the next three years to raise cash for investment on the railways. But Justine Greening, the new Transport Secretary, has urged the Chancellor to announce a rethink in his Autumn Statement on Tuesday.

Ms Greening is suggesting that fares should go up by about 6 per cent – 1 per cent above inflation – in a move to reduce the impact on hard-pressed commuters and long-distance travellers. The move would cost the Treasury an estimated £26m.

The Independent understands talks on the issue are still "live", but the Department for Transport is privately optimistic of success in its negotiations with the Treasury. A DfT source said: "We've been fighting very hard and we're very hopeful we have won something. There is money around for things when we think they are worth it, such as [weekly] bin collections."

The department is arguing that the potential benefits from higher fares have to be offset by the danger of a drop in revenues as travellers swap trains for other forms of transport.

Ms Greening's move signals a change of approach at the DfT. Insiders last night said she places far more emphasis than her predecessor, Philip Hammond, on passengers' needs.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in