Ben Webster, Transport Correspondent
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Train fares will rise by several times the rate of inflation under a series of deals between the Government and rail companies designed to take advantage of record growth in demand for rail travel.
Stagecoach gave notice yesterday that it planned to follow its 20 per cent increase on its South West Trains franchise last month with a substantial increase on the new East Midlands franchise after it takes over in November.
The company plans to raise fares by at least 30 per cent above inflation during the seven-year franchise and indicated that it preferred one big increase early in the contract rather than spreading it over several years.
Go-Ahead plans to raise fares on the London-Northampton route by 25 per cent in real terms during its eight-year franchise.
Passengers on the East Coast Main Line and Cross Country franchises also face large increases under deals due to be announced in the next few months.
The Department for Transport has publicly distanced itself from the increases, claiming that they are a matter for the private train companies. The DfT says that it is only responsible for setting regulated fares, such as season tickets, which it expects to raise by 1 per cent a year above inflation.
The Times has learnt, however, that the DfT made clear to the companies, when they were bidding for the franchises, that they would have to raise unregulated fares to have any chance of winning.
The department now expects to make a profit from franchises that it had previously subsidised. Under the East Midlands deal Stagecoach must pay the DfT £374 million in the final four years of the franchise.
Chris Grayling, the Shadow Transport Secretary, said: “The Government is trying to pass the blame for these fare increases on to the train companies. But they seem to be another form of stealth tax.
“We need a guarantee that all the extra money raised from passengers will be spent on improving services.”
Passenger Focus, the official rail passenger watchdog, said that the increases were making rail travel unaffordable for people on low incomes.
A spokeswoman said that the watchdog was worried that the Government planned to abolish the price cap on saver fares, which are the only cheaper tickets available on the day of travel on many routes.
Brian Souter, chief executive of Stagecoach, said that it was unfair to place all the blame for the fare increases on the train companies.
“There have been some very high fare increases across the industry and that’s because of the way the [franchising] model is shaped. If you don’t bid on that basis you don’t win a franchise.”
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The more people are travelling by train argument is always touted as an indication of success when in actuall fact it is an indictaion in nothing more than the increase in populaetion and the tendancy for that population to commute further to work nothing more!
Eamonn, BRACKNELL,
If Peak Period fares are supposed to be the most expensive per mile (apart from Season Tickets), are we to presume that off-peak fares are to equal these over the period of a Franchise. And if off-peak services prove to expensive to use, is all this rolling stock, still paying lease charges, to sit unused in sidings. Is that definition of 'criminal' waste?
Chris(topher) BURTON, Cambridge, uk
We're all paying for the massive increase in expenditure by Network Rail. Spending on the infrastructure has risen from £1.5 billion to £5 billion per year.
James Strachan, Cambridge,
Don't worry, I'm sure the reduced subsides paid to the train companies will be returned to us in the form of lower taxation. Won't they?
Tony Jones, Grantham, Lincs
We never learn the lesson. Telecoms companies lost thousands of jobs from the amount that they ended up paying for 3G. What a greedy Government this is, I feel very sorry for rail passengers they are being used. I hope they remember the increases when they vote at the next General Election.
Judy , Liverpool, england
Pricing commuters off the trains can only have detrimental consequences. I've already paid 9% extra this year for my annual season ticket - another 30% will put me out of work - how is that helping anybody? This ridiculous rail fiasco, with the government forcing train companies to put up huge franchise bids is beyond belief. Then they try to totally distance themselves from the consequences. The country's gone mad - but we'll all pay up (if we can afford to) and keep on moaning. This couldn't happen anywhere else in the world.
Richard, Peterborough,
Is the government completely stupid, by making the rail companies bid huge amount for franchises they know fares will rise substantially. It is the governments job to get people off the roads by ensuring there is a cheap, frequent and reliable public transport alternative. This is a fundamental responsibility of any government. Yet again, however, they show themselves to be totally inept, and increasingly unpopular.
John, London, England
Government campain to get people onto public transport, then they price it out of reach.
Mike, Paphos, Cyprus
So the desire of the government to reduce subsidies to the train companies will cause yet further price rises.Once again joined up policies are not the strong point of the nation's supposedly first climate-conscious. If even a small proportion of commuters and occasional rail passengers now decide to use less carbon-friendly forms of transport it is hard to see how this deal contributes to the fight against global warming.
BILL JACKSON, Nottingham, uk
Once again the Labour Government are seen to be the the main driver of inflation in this country. Sooner rather than later the electorate will call a halt to this stupidity and call for an election.
Steve Jubb, Kegworth, UK
There have always been good reasons why national interest should be controlled by government. Power, water and transport all demonstrate at many levels these reasons. Here we have the rail companies jumping on a band waggon of supply and demand. The demand is of national importance created by successive governments failing to invest in nationally important infrastructure. There is little evedence of the current private owners wanting to do anything but screw the customer for as much as they can. The predatory Stagecoach company complaining about franchise costs doesnt cut any ice, they have clearly demonstrated in the past that they care for nothing or anyone, just money. So as usual the British public are being ripped off.
mike gee, bournemouth, uk
I've recently moved to Belgium, I pay around GBP 1500 p/a for my season ticket from Oostende to Brussels (about the same distance as Ipswich to London) and for that money the Belgian Railways throw in a free season parking ticket next to the station. If I were actually employed, rather than self-employed, my employer would legally have to pay the bulk of this too.
And yes, unlike in the UK, trains are usually pretty much on time, no matter what the weather.
Robert, Oostende, Belgium
Has anyone else noticed that whenever improvements to our road infrastructure are planned, the Greens and the rest of the anti-roads, anti-car lobby come out with all guns blazing and voiciferous opposition. Yet when it comes to things which put people off using public transport and leave many with no viable (or cheaper) alternative to using their cars, such as overly complex and ever-increasing bus and train fares, these people say next to nothing. Hypocrisy or what?
Robert Crosbie, Galashiels, Scotland
We are being taxed for using our cars and so we use the trains in order to save money and save the environment. This is surely a tax on 'going green'! There must be a balance between good business sense and governement policy.
Francis Dalton, Derbyshire,
We regularly travel long distances by train with the family. This suits everyone including the environment. However its only financially possible for me to do so by using the cheap saver fares that are available in advance. Unfortunately, each time I book on-line it takes me longer to find discounted fares and I am faced with an increased numbers of changes during the jouney, often with long waiting times. Any more obstacles to obtaining discounted fares will drive our family back to the car.
Philip Wilson, Whaley Bridge, High Peak
I'll let my car (and therefore the environment) take the strain.
Rod Munch, Northampton, UK