Reeves targets cost of living with rail fares freeze amid fears over Budget tax rises
A rail fare freeze will top a raft of measures to tackle the cost of living in next week’s budget as Rachel Reeves seeks to offer some hope amid economic distress.
The Chancellor hopes a raft of measures to help “working people” will offset any backlash from a series of tax rises he is believed to be planning.
The announcement on rail fares will save an estimated £300 next year for passengers using the most expensive routes and follows Labour’s decision to renationalise the rail network.
The moves come amid speculation about tax rises on property, banks and gambling and concerns that the Chancellor will need to plug a black hole of at least £20bn in government finances.
The rail freeze comes amid concerns fuel duty could rise for the first time in 15 years, as FairFuel campaigners prepare to deliver a 152,000-signature petition to numbers 10 and 11 on Tuesday.
Ms Reeves said: “In next week’s Budget I will set out fair elections that will deliver on the country’s priorities of shortening NHS waiting lists, reducing the national debt and lowering the cost of living.
“That’s why we’re choosing to freeze rail fares for the first time in 30 years, which will ease the pressure on household finances and make getting to work, school or visiting friends and family a little easier.”
The government said the changes are part of plans to rebuild public-owned Great Britain Railways, which will deliver value for money by bringing rail tickets into the 21st century with entry, exit and digital ticketing, as well as investment in superfast wifi.
The announcement applies to the UK and services operated by British train operators.
Ministers said a typical three-day-a-week commuter using flexible season tickets would save £315 a year on a trip from Milton Keynes to London, £173 on a trip from Woking to London and £57 on a trip from Bradford to Leeds.
The freeze will apply to all regulated fares, including seasons, peak returns for commuters and off-peak returns between major cities, benefiting more than a billion passengers.
Transport Minister Heidi Alexander said: “We all want to see cheaper rail travel, so we’re freezing fares to help millions of passengers save money.
“Those traveling on more expensive routes will save more than £300 a year, meaning they can keep more of their hard-earned money.
“This is part of our wider plans to rebuild Great British Railways that the public can be proud of and trust.”
Unions and passenger groups welcomed the decision.
Alex Robertson, chief executive of passenger watchdog Transport Focus, said: “As well as keeping trains running on time, the fare freeze will be extremely welcome news for rail passengers who consistently tell us that value for money is their top priority. It should also make it more attractive for people to use trains more often or for the first time.”
Mick Whelan, general secretary of train drivers’ union Aslef, said: “This is the right decision at the right time to help passengers afford the journey they need and to help our rail grow in this country, because rail is Britain’s green alternative; removing cars and lorries from our congested roads and moving people and goods safely across our country in an environmentally friendly way.”
Eddie Dempsey, general secretary of the Rail, Maritime and Transport (RMT) union, said: “More affordable fares will encourage greater use of public transport, support jobs, give local economies a boost and help improve the environment.”
