How the Government could keep train fares down

By Richard Hebditch, campaigns director at Campaign for Better Transport, who are currently running Fair Fares Now campaign to keep down rail costs

This morning’s announcement of the latest retail price index (RPI) inflation figure of 5 per cent, which will be used to calculate January’s train fare increases, means regulated fares are rising four times faster than wages with some set to rise as much as 13 per cent next year.

By 2015 fares will be around 28 per cent higher than they are now.

The Government ahould drop their inflation-busting fare rises and instead cap regulated fares at RPI minus 1%. We want to see cheaper, simpler and fairer rail tickets that provide good value for money and actually encourage people to use the train.

In the shorter term, the Government should also introduce a fuel tax on domestic flights, which currently get off scott free.

If the tax was introduced at the same rate as motoring fuel tax, it would raise around £460 million a year – enough to make up for revenue lost by cutting rather than increasing train fares.

The Government is promising improvements for passengers some way down the line but people will be paying more now for, in many cases, a worse service and at a time when people are least able to afford it.

Rather than penalising commuters we should be looking to cut the costs of the railway which are 40 per cent higher than equivalent countries. The Government knows the industry’s costs are too high and have already identified potential cost savings of up to £1 billion a year in the future – that should allow for investment and lower fares – the savings shouldn’t just be clawed back into government coffers.

No-one expects taxpayers to pay for all the costs of the railway but most people recognise that supporting our railways helps not only the passengers using trains, but also has much wider benefits in reducing congestion and cutting carbon. We’d soon start to see many more gridlocked roads if we the only source of income for the railway were farepayers.

The taxpayer contribution has already gone down significantly since the increase in spending after the chaos of the situation under Railtrack, with about a third of all spending on rail coming from the taxpayer.

It’s right that there should be a debate on what the contribution should be but the Government hides so much of the information about spending and income because of “commercial confidentiality” so it’s very difficult to have that open debate.

The railways bring huge benefits to society and not just to those who use them – tackling climate change, providing access to jobs, moving goods so that we can reduce the number of lorries on our roads – all these justify taxpayer support.

The Government is conducting a fare review in the Autumn and we’ll be pressuring them to look again at their above inflation fare rises. As the thousands of signatures we’ve collected through our national petition shows, there is real anger out there and the Government would be foolish to ignore that.

You can join the Fair Fares now campiagn here. Campaigners were at Waterloo Station this morning to spread the message:

http://twitter.com/elrikmerlin/status/103507232913756161 Elrik Merlin

RT @leftfootfwd: How the Government could keep train fares down: http://t.co/HtllTIE #fairfaresnow
http://twitter.com/anonymoosh/status/103507717167124480 Ceehaitch

How the Government could keep train fares: http://t.co/QBfrGMz : writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/richardhebditch/status/103507854262153217 Richard Hebditch

How the Government could keep train fares: http://t.co/QBfrGMz : writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/toivoperson/status/103507890911969280 Toivo Hartikainen

How the Government could keep train fares: http://t.co/QBfrGMz : writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/therightarticle/status/103508672977715201 Michael

How the Government could keep train fares down l Left Foot Forward – http://j.mp/ne7g7M
http://twitter.com/bham_foe/status/103508740053024768 Birmingham FOE

RT @leftfootfwd: How Govt could keep train fares down: http://t.co/y5oZyZs Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/gwynnemp/status/103509253930745857 Andrew Gwynne

RT @leftfootfwd: How Govt could keep train fares: http://t.co/iFLdHHz writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/cityplymunison/status/103510591687237634 Plymouth City UNISON

How the Government could keep train fares down l Left Foot Forward – http://j.mp/ne7g7M
http://twitter.com/dcorney/status/103514713530441728 David Corney

How the Government could keep train fares: http://t.co/QBfrGMz : writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/blindjustice41/status/103520242344534017 w.m o’mara

How the Government could keep train fares: http://t.co/QBfrGMz : writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/greenbirmingham/status/103523565344796672 Sandy Taylor

RT @leftfootfwd: How Govt could keep train fares down: http://t.co/y5oZyZs Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/redjolly1/status/103526141691838464 Debbie Jolly

How the Government could keep train fares: http://t.co/QBfrGMz : writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/bennewmanwright/status/103528275288141824 Dr. Ben Wright

While 5/6 big energy companies increase prices (http://t.co/i3qBICF), train fares are set to increase by up to 28% (http://t.co/cjBMihy).
http://twitter.com/healthybrum/status/103537058521419776 Healthy Brum

RT @leftfootfwd: How Govt could keep train fares down: http://t.co/y5oZyZs Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://anthonycooper.blogspot.com Anthony

Richard, where does the £460m figure come from? My analysis indicates that a fuel duty would raise at most only half that value.

see http://anthonycooper.blogspot.com/2011/08/domestic-flights-fuel-duty.html
http://twitter.com/hens4freedom/status/103565596502921216 Hens4Freedom

How the Government could keep train fares: http://t.co/QBfrGMz : writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
Mr. Sensible

I fully agree with you, Richard.

Do domestic flights really not pay fuel tax? If so, this must clearly be put right.

Whenever I have to go down to London from Nottingham, I find that the service is mainly good, but at the rate prices are going up, how many people will have the means to afford it?

As you correctly say Richard, this could have consequences for the rest of the economy if passengers start deserting the railways.
Chris

If we’re going to put the railways right it’s going to take more than this predictable call for still more taxpayer money to be pumped in. How is it possible for a massively subsidised transport system (rail) to be unable to compete with a massively taxed system (cars)? As long as I can remember rail tickets have been extortionate. Why? Is it incompetence and greed at the top? Are the railway just a nineteenth century relic that is no longer efficient? I would love to know why our railway service is so consistently and irrevocably appalling.
Ed’s Talking Balls

‘Is it incompetence and greed at the top?’

In short, I’m afraid it probably is.
http://twitter.com/liannedemello/status/103641775142486016 Lianne

How the Government could keep train fares down http://t.co/XI7DwMn
http://twitter.com/trakgalvis/status/103682076838072320 Trakgalvis

How the Government could keep train fares: http://t.co/QBfrGMz : writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/james_edwards01/status/103726950492798976 James Edwards

RT @leftfootfwd: How the Government could keep train fares down http://t.co/DapzgdV #in
http://twitter.com/hitchinengland/status/103751994333863936 Hitchin England

How the Government could keep train fares: http://t.co/QBfrGMz : writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
http://twitter.com/monsrobin/status/103760560453206016 Ben Mitchell

RT @leftfootfwd: How the Government could keep train fares down http://t.co/FDFI6iM
http://twitter.com/gjonesofficial/status/103762561727606784 Gareth Jones

http://t.co/rdxpvfA How the #UK Government could keep #trainfares down
http://twitter.com/tpreadthis/status/103764104770105344 TP recommends…

A fuel tax on domestic flights, and other ways the government could avoid rail fare increases, from @leftfootfwd http://t.co/OMcEWHP
http://twitter.com/nopolicecuts/status/104133702564581377 Police Cuts

RT @leftfootfwd: How Govt could keep train fares: http://t.co/iFLdHHz writes Campaign for Better Transport's @RichardHebditch #fairfaresnow
Mr. Sensible

I remember a post on this very blog before, by I think someone from one of the rail unions, commenting on the Mcnultey review. He effectively suggested that the Mcnultey review suggested fragmentation as a reason for increased costs, but more of this could come under the government’s plans.

Chris the railways are still very much rellevent today.
http://twitter.com/vonslaich/status/104780367608819712 Consumer

http://t.co/c9Rnljf @FirstCC_sucks
http://twitter.com/firstcc_sucks/status/105561563884302337 FCC Suks

http://t.co/c9Rnljf @FirstCC_sucks
http://twitter.com/bennewmanwright/status/114413899956228096 Dr. Ben Wright

While 5/6 big energy companies increase prices (http://t.co/kj4CjObY), train fares are set to increase by up to 28% (http://t.co/WIbquyWo).
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