Yorkshire bus and train fares could rise, watchdog warns

The Competition and Markets Authority (CMA) has expressed concern about the overlap between rail and bus routes operated by Arriva.

It has identified train services between Leeds and Sheffield and between Wakefield and Sheffield as well as two bus routes in the Huddersfield area where passengers could suffer higher fares because of the lack of competition.

Restrictions on fare rises could now be imposed on those routes to protect passengers.

Arriva became the main operator of local train services in Yorkshire in April after it was awarded the northern rail franchise for the next nine years by the Government.

Phil Evans, who chaired the CMA’s inquiry, said: “We assessed the franchise award thoroughly and have provisionally found that it could lead to higher fares for passengers on some local rail and bus services in the North of England, which would be significant for consumers using these services.

“However, we have not identified competition concerns arising from this merger on most routes and we recognise Arriva’s commitment to bringing a range of benefits through the Northern rail franchise to passengers, such as better trains and improved customer service.

“Our remedies will protect passengers in the relatively few local areas where we have identified competition concerns.

“We are now inviting responses to our provisional findings and remedies notice, and will continue to assess all the evidence before we make our final decision.”

Chris Burchell, Managing Director Arriva UK Trains said: “We are pleased that the CMA in their provisional findings have recognised Arriva’s commitment to bringing a range of benefits to passengers through the Northern rail franchise, including through better trains and improved customer service.

“We have maintained throughout this process that the operation of the Northern franchise by Arriva alongside our existing bus and rail businesses does not create any competition concerns and so we are disappointed that the CMA has identified a small number of these in a handful of local areas.

“This remains an on-going process and Arriva is committed to continuing to engage constructively with the CMA to resolve their concerns and demonstrate that the award of the Northern rail franchise doesn’t lessen competition.

“We remain fully committed to delivering our transformational plans for the Northern franchise for the benefit of all our passengers.”