Rail travel becomes less appealing fleet alternative as fares set to rise
Fleet operators looking to reduce fuel costs by making more use of the national rail network may have to think again as it was announced that train fares will increase by 8% on average from this January.
This jawdropping jump announced by the Government in this morning’s Spending Review has been pinned on last month’s inflation rate and rail companies being allowed to charge up to 3% on top of those inflation figures.
A Department for Transports spokesperson said that upping fares was a difficult decision but it would contribute towards the long term solution of getting the cost of running the railways down.
“That way we can get a better deal for passengers and tax payers,” they added. “We are determined to do this and if we succeed, we hope to see the end of above inflation rises in regulated fares.”
Long term value
David Mapp, Commercial Director at the Association of Train Operating Companies, said the 8% rise on an annual season ticket will see the average commuter pay £3.18 more a week.
He defended the decision arguing that the extra cash will enable the Government to pay for more trains, better stations and faster services.
“Increasing the money raised from fares will mean that taxpayers contribute less to the running of the railways, whilst ensuring that vital investment can continue,” he explained.
“The industry is working with the Government to cut the cost of running the railways, building on the progress that has already been made.
“A more efficient railway will help to limit fare rises in the future, and offer better long-term value for money for the taxpayer.”
Balancing act
A ceaseless rise in the price of fuel has led many fleet managers to consider public transport as a more viable option for business travel.
But with the possibility of bus services being trimmed down [more info here] and now the likelihood of pricier rail fares, it looks like fleet bosses will be forced in a tougher balancing act when it comes to journey management.
Last week, Neville Briggs of CFC Solutions – a developer of fleet management software – commented on how the recession had triggered radical action from some companies in the way of more car sharing, greater use of video conferencing and managerial authorisation of journeys.
“This saved quite a lot of money but the controls seem to have largely slipped away,” he added.
Campaign for Better Transport’s Alexandra Woodsworth said rail season tickets will be 28% higher by 2015 as a result of today’s announcement.
“These punitive fare rises deal a fresh blow to commuters already facing the financial crunch of rising costs combined with frozen wages,” she stated.
“We need affordable rail travel – not only to give passengers a fair deal, but to protect the economic health of our major cities, and to address the urgent imperative to cut carbon emissions.”
Campaign for Better Transport has launched a petition resisting the new fares. You can pledge your support at the following link: bettertransport.org.uk/fairfares/petition.
Spaces
News of the rise comes less than a week after Rail Minister Theresa Villiers announced that 8,800 spaces will be created for key lines between Leeds, Manchester, Liverpool, Birmingham, Bristol and Newcastle.
DfT intends to introduce 2,700 new rail carriages on to the network by May 2019.
Whether anyone will be able to afford the tickets by then is another matter…
What do you think of the Government’s intentions to up fares for rail travel? Speak your mind in our comments section below or tweet us @FleetDirectory…
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