A freeze in rail fares will top a series of measures in next week’s Budget to tackle the cost of living as Rachel Reeves seeks to offer some hope amid the economic gloom.
The chancellor hopes that a series of measures to help out “working people” will offset any backlash from a number of tax rises she is believed to be planning.
The announcement on rail fares will save an estimated £300 next year for commuters who use the most expensive routes and follows Labour’s decision to renationalise the railway network.
The moves come amid speculation about tax rises on property, banks and gambling and concerns that the chancellor will need to fill a black hole in the government finances of at least £20bn.
The rail freeze also comes amid concerns that fuel duty could rise for the first time in 15 years, with FairFuel campaigners set to deliver a 152,000-signature petition to No 10 and No 11 on Tuesday.
Ms Reeves said: “Next week at the Budget, I’ll set out the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt and cut 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 travelling to work, school or to visit friends and family that bit easier.”
The government said the changes are part of its plans to rebuild a publicly owned Great British Railways that will deliver value for money through bringing rail tickets into the 21st century, with tap-in, tap-out and digital ticketing, alongside investing in superfast wifi.
The announcement applies to England and services run by English train operating companies.
Ministers said a typical commuter travelling to work three days a week using flexi-season tickets will save £315 a year travelling from Milton Keynes to London, £173 travelling from Woking to London and £57 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, benefitting more than a billion passengers.
Transport secretary Heidi Alexander said: “We all want to see cheaper rail travel, so we’re freezing fares to help millions of passengers save money.
“Commuters on more expensive routes will save more than £300 per year, meaning they keep more of their hard-earned cash.
“This is part of our wider plans to rebuild a Great British Railways the public can be proud of and rely on.”
Unions and passenger groups have welcomed the decision.
Alex Robertson, chief executive of passenger watchdog Transport Focus, said: “Freezing fares will be extremely welcome news for rail passengers who consistently tell us value for money is their highest priority, alongside trains running on time. It should also make it more attractive for people to use the train more often or for the first time.”
Mick Whelan, general secretary of the train drivers union Aslef, said: “This is the right decision, at the right time, to help passengers be able to afford to make that journey they need to take, and to help grow our railway in this country, because the railway is Britain’s green alternative – taking cars and lorries off our congested roads and moving people and goods safely around 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, supporting jobs, giving a shot in the arm to local economies and helping to improve the environment.”
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