A promise to freeze fares would help the public to regain the railway habit

The announcement of the July inflation figure is the trigger for the first of what becomes three annual national news stories about fares rises. This year there is enormous pressure from both within and outside the industry to ensure that the regular January rise does not happen.

As Railfuture (of which I am honorary president) put it in a press release: “It’s very important that the Government sends a signal that they want people to use trains. As the Government can find money for people to get £10 off at Burger King, then it can afford to freeze rail fares.”

Indeed, I did find it rather strange that I managed to buy breakfast for me, my wife and stepdaughter for just £7 (half the normal price) at Pret in Stansted Airport, but no such concession was on offer for the train ride there.

The first thing I learned at university for my Economics degree was that when demand is low, then prices should fall in order to attract more custom.

Therefore, I would go further than Railfuture’s suggestion of a zero inflation rise. Instead, the Government should announce it was going to reduce fares by 2.8% and would do so immediately, as well as providing a whole host of offers - such ‘as buy one get one free’ or a new national railcard which would be available to anyone (after all, it is only the 30 to 59-year-olds who are ablebodied, not in full-time education or the services, and not regularly travelling with the same companion who end up paying full fares).

I am aware of the arguments against this sort of thing. Those who would use the railway at existing prices are being offered a discount. But, as my cheap breakfast at Pret shows, plenty of money is being wasted in that way already as I was quite prepared to pay the normal price for it.

The imperative is to get people to regain the railway habit. Otherwise, as I warned in RAIL 911, closures are inevitable. And ministers must know that they would not be popular.

I know it would be too much to dream of a tax rise on fuel, to help shift more people onto rail, because that would involve a clear policy of encouraging sustainable transport (and we have never had that in this country). But that would be the best way forward.