Rail price hike

16/08/11

Rail ticket prices are set to rise by eight per cent next year in line with guidelines set out by the coalition government.

In the spending review fare increases were tied to retail price index (RPI) inflation plus three per cent for every year up till 2015.

RPI figures of five per cent for the year up till July released by the Office for National Statistics today mean fares will go up by eight per cent as ministers attempt to cover the cost of ambitious investments in the rail infrastructure whilst avoiding extra borrowing.

The change in prices has already been broadly criticised, with many pointing to a disparity between the expected increase in wages of 2.2% and the almost four times larger rise in fares.

The government was already under fire from unions over its decision to hand the Thameslink contract to German company Siemens instead of Derby-based train manufacturer Bombardier.

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