Rail fares are set for big rise (From Swindon Advertiser)

Rail fares are set for big rise

9:30pm Friday 23rd July 2010 in News By Andy Tate

RAIL fares in Swindon could rise by up to 10 per cent, Transport Secretary Philip Hammond hinted this week despite the town having the highest single fare in Europe.

Mr Hammond, challenged by the Advertiser to squash speculation of huge fare hikes on the horizon, said: “I don’t want to rule anything out.”

The minister insisted the coalition Government was committed to “fair fares” and said no decision would be taken until after the national spending review concluded in the autumn.

But he added it would be wrong not to consider whether the current pricing structure should be changed against a backdrop of public spending “constraints”.

The cost of a standard-class Anytime Single on a First Great Western (FGW) train for the 77-mile journey from Swindon to Paddington is £54.50, which rises to £89.50 in first class. At more than 70p a mile, this is the most expensive fare in the EU.

Mr Hammond has already indicated that the existing annual fare rise formula – whereby regulated rail fares including season tickets go up each January by one per cent above RPI inflation – may have to be reformed.

Yesterday, during Commons question time, shadow transport minister Willie Bain expressed fears that the fare formula could be replaced with an RPI plus five per cent arrangement – meaning a likely rise of up to 10 per cent.

Mr Hammond replied: “The coalition agreement commits us to a policy of fair fares and we are committed to ensuring that fares are fair for rail users, and no decisions have been made as yet about future fare increases.”

Offered the chance to rule out 10 per cent rises in Swindon, the minister told the Advertiser afterwards: “If we rule out fare increases we are essentially shrinking the pot of money that would be available for investment in the railways and it is very clear that there are some investment that passengers urgently need, including additional rolling stock capacity.

“Until I’ve seen what my spending assessment from the Treasury is, I don’t want to rule anything out.”

Gerry Doherty, leader of the TSSA rail union, said: “The Transport Secretary will be betraying millions of passengers if he scraps the present fares formula and allows a 10 per cent increase in fares in January”

Mr Hammond refused to offer any hope for supporters of the redoubling of the Swindon to Kemble railway line, saying that scheme would also be “reviewed” following the spending review.