July's high inflation means big fare increases for rail passengers in 2012

CROSS-Border rail passengers face fare rises averaging 8 per cent from January, although the increase for travellers within Scotland has been limited to 6 per cent.

The news follows publication of July's inflation figures, on which the fare levels are based.

The Scottish Government's Transport Scotland agency confirmed its pre-election pledge last year not to change the formula for fare increases - unlike in England and Wales. However, it will be the second 6 per cent annual increase in a row for Scottish passengers.

Fares for ScotRail passengers will still go up by 1 per cent above the retail price index (RPI), which was 5 per cent last month. By contrast, fares south of the Border will increase by 3 per cent above RPI. This will also cover cross-Border train operators such as East Coast, Virgin and CrossCountry.

The rise affects "regulated" fares, such as ScotRail's off-peak returns and standard class season tickets, along with all fares in Strathclyde - which account for some two-thirds of journeys. There is no cap on other fares, but in recent years ScotRail has upped these by the same amount as regulated fares.

Transport Scotland said the cap on ScotRail fare rises was part of its franchise agreement with FirstGroup, which runs until 2014. However, a spokesman said there was no commitment to maintain the cap in 2013 and 2014 because ministers had to consider spending allocations "on a year-to-year basis".

He said: "Under the franchise agreement, ScotRail are able to increase regulated fares by up to RPI plus 1 per cent. The regulated increases of up to 6 per cent in Scotland are consistent with the franchise agreement."

Paul Dyson, director of rail at infrastructure consultancy Turner & Townsend, said: "Scotland's long-suffering rail passengers have been spared the full force of the fare increases inflicted in England.

"But a 6 per cent increase is scarcely any easier to swallow than an 8 per cent fare hike."

David Sidebottom, director of Passenger Focus, said: "Having some fares regulated is clearly in passengers' interests. However, the way that train companies are allowed to set fares on individual routes is deeply unfair. Some passengers who may have seen no investment or improvements can get hit year after year."

UK Transport Secretary Philip Hammond said he recognised the increase south of the Border would not be popular but said it was necessary to fund rail improvements.