Rail (UK)

Rail fares

- Business · Taxes · Department for Transport · United Kingdom Department for Transport

Shadow Trans­port Sec­re­tary warns that pos­si­ble 2.6% rise on reg­u­lated tick­ets will make travel more un­af­ford­able.

I nor­mally have lit­tle (if any) sym­pa­thy with the Depart­ment for Trans­port, in the light of the ap­palling re­cent de­ci­sions it has taken on is­sues such as the re­fusal to com­pen­sate rail­card hold­ers, but I can see the prob­lem re­gard­ing the fares in­crease in Jan­uary.

The Govern­ment has given huge sums to busi­nesses ow­ing to COVID, and that in­cludes to the trans­port in­dus­try. I think we all know that this is not a gift and will even­tu­ally have to paid back in bet­ter times.

That will in­evitably mean tax rises of some sort, whether In­come Tax, Cap­i­tal Gains,

VAT or even all of them.

All busi­nesses will there­fore face higher taxes them­selves, as well as their em­ploy­ees. And in the end, it’s bound to lead to higher prices, whether that’s higher shop prices or more ex­pen­sive drinks in pubs.

So it’s to be ex­pected that rail fares will have to go up more than usual as part of this pay­back to the Trea­sury.

I know the prob­lem is that we want more peo­ple to use trains and a fare CUT would be bet­ter to at­tract them, but would it pro­duce as much rev­enue over­all?

Hard times are ahead.

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