In the age of restraint and austerity, rail fares jump 6%

RAIL firms have come under fire after announcing “inflation-busting” fare increases of 6 per cent across Scotland in the new year.

It means that the cost of a return ticket between Glasgow and Edinburgh will top £20 for the first time.

Passengers groups say the hike is out of kilter with people’s pay and they “deserve better”, while the SNP Government faced claims that it is “out of touch” with ordinary travellers.

The increases will come into effect from next month.

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Anthony Smith, chief executive of rail consumer watchdog Passenger Focus, said there has been relief that the government has capped rises at no more than 1 per cent above the inflation rate.

But he added: “This has still led to average 6 per cent rises which will not be reflected in most people’s pay. Passengers will now have to trawl the detail to find out what is happening on their individual routes.

“The spotlight will really be on train operating companies and Network Rail to deliver on their promises about performance and overcrowding. We passengers are paying our fair share and we want and deserve better.”

Rail services are under the control of the Scottish Government north of the Border and First ScotRail holds the current franchise to provide services until 2014.

About two-thirds of ScotRail fares are regulated and can only be increased by up to 1 per cent above the current inflation rate of 5.2 per cent. But the operator has indicated it will keep rises in its unregulated commercial fares at 6 per cent as well.

Liberal Democrat leader Willie Rennie said: “Rail passengers will be extremely concerned about the hike in rail fares, especially as the Scottish Government is currently consulting on cutting back rail services.

“Paying more for less is not an approach that has any chance of encouraging people away from the roads and onto Scotland’s rail network.”

A recent consultation into the future of rail services launched by the SNP included the prospect of raising fares on those routes which have benefited from improvement works, as well as suggesting a reduction in the lowland route connecting Edinburgh and Glasgow with Euston to an Edinburgh only service.

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A ScotRail spokesman said: “We are committed to meeting customer demand for high-quality punctual services. This approach enables us to continue to invest in service improvements while ensuring that rail travel remains value for money.”

Michael Roberts, chief executive of the Association of Train Operating Companies (ATOC), said: “Money raised through fares helps pay for new trains, faster services and better stations. The long-standing government approach to sustaining rail investment is to cut the contribution from taxpayers and increase the share paid for by passengers.”

Rail services are heavily subsidised. Across the UK passengers contribute about £6.5bn to the running of the railways, with taxpayers picking up the remaining £4bn.

ATOC released a breakdown of every pound of income that train companies get. Almost half, 48 pence, goes to Network Rail which maintains the tracks, 17p goes on staff, 11p on leasing trains, 4p on fuel and 17p on other costs like maintenance and administration. Only 3p goes on profits.

But Labour infrastructure spokesman Richard Baker said: “Coming on top of SNP Government plans to cut the number of trains, increase journey times, end cross-Border trains and stop the sleeper service, ramping up fares is the last thing hard-pressed rail passengers need.

“My fear is that passengers will be forced to fork out ever higher fares, for ever lower levels of service. The SNP government is out of touch with ordinary rail passengers and seems determined to stack the odds in favour of the big train operators.”

Bob Crow, general secretary of rail union RMT, said: “These inflation-busting increases show that the great rail fares privatisation swindle is still rocking along.

“Independent analysis by government departments has proven that the fare increases are trousered by the shareholders of the private companies while passengers pay through the nose to travel in crammed and creaking carriages. The corporate welfare scroungers from the train companies have bled hundreds of millions out of our railways and they should be told that the game’s up.

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A spokesman for the Scottish Government said it is up to ScotRail to judge what the increase in relation to unregulated fares should be.

“This government continues to support rail in Scotland with almost 75 per cent of the cost of a ticket paid through government subsidies,” he added.

“In terms of our levels of investment, by 2013-14 we will be approaching almost £800 million each year for rail services.

“But ultimately unregulated fares is a decision for ScotRail and it’s really for them to explain to passengers the reasons for the increase. Of course, it is the consistent formula that’s been used for regulated fares of one per cent above inflation. There’s no questions that things are getting more expensive.”