Labour's £1.5bn Rail Fare Plan Could Hike Passenger Costs
Labour's £1.5bn Rail Fare Plan Could Hike Passenger Costs

Labour has unveiled what it calls the biggest ever plan to cut rail fares, promising to reduce season tickets and other regulated fares by a third and introduce free rail travel for those aged 16 and under. The proposals, which would apply only to England due to devolved powers in Wales and Scotland, also aim to ensure part-time workers do not pay more per journey than season ticket holders.

The announcement comes a day after train operators confirmed an average 2.7% increase in rail fares for January, prompting criticism from passenger groups. Labour's plan would cut these regulated fares by 33% from January, saving the average commuter £1,097 a year, according to the party. However, the cost of the scheme, estimated at £1.5bn annually, could ultimately lead to higher fares for some passengers if funding sources fall short.

Labour intends to fund the cuts by redirecting revenue from vehicle excise duty (VED), which currently goes to road projects under Conservative plans. VED is expected to raise £6.5bn in 2019-20. The party also promises a London-style zonal ticketing system across the nation, with contactless payments, to simplify prices.

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Jeremy Corbyn said: 'Travelling by train is my favourite way of getting around the country but for too long a fragmented and privatised rail system has ripped off passengers.' Shadow transport secretary Andy McDonald added: 'Privatisation has created one of the most complex, exploitative and expensive ticketing systems in the world.'

The rail fare pledge follows Labour's commitment to increase active travel funding from £7 to £50 per person per year, aiming to double cycle trips and build 3,000 miles of cycle lanes. Critics warn that the fare cuts, while popular, may not be sustainable without broader tax increases or efficiency savings.

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