Shake-up could hit off-peak rail users in pocket

Ministers confirmed yesterday that they would carry out a full review of ticket prices, which could lead to some fares becoming cheaper but others getting more expensive.

The move had been called for in a report by former Civil Aviation Authority chairman Sir Roy McNulty, who found that on average British passengers pay about 30 per cent more than rail customers in other European countries.

Other recommendations outlined in the Whitehall-commissioned study include creating 10,000 more parking spaces at stations to raise money and closing ticket kiosks to leave more room for shops.

Sir Roy also suggested introducing ticket gates at more stations to prevent passengers travelling without paying and called for pay restraint across the industry, concluding that wages were too high and working hours were too short.

He said there was no “silver bullet” to deal with all the rail sector’s problems, but claimed that implementing his proposals could save between £700m and £1bn annually by 2019.

But the measures could also put the Government on a collision course with unions, who claimed yesterday that they would amount to “an escalation of all the worst practices of privatisation”.

The Government will reveal which proposals it wishes to take forward in a White Paper, expected in November. Changes will be led by a new Rail Delivery Group, to be chaired by former London Underground boss Tim O’Toole.

Transport Secretary Philip Hammond told the House of Commons: “The excessive cost base that Sir Roy has identified is the reason that UK rail fares are already by some margin the highest in Europe, even though levels of taxpayer subsidy are also among the highest.

“And let’s be clear about the potential prize: the successful delivery of cost reductions over the next few years on the scale set out by McNulty would enable us to reduce levels of taxpayer subsidy and, at the same time, put the era of inflation-busting fare increases behind us.”

The fares review is expected to focus on narrowing the gulf in price between expensive peak-time travel and cheaper tickets for journeys during quieter periods. Anthony Smith, chief executive of rail consumer watchdog Passenger Focus, said the Government was taking a “leap in the dark” by tinkering with off-peak fares.

“All the experience, all the history shows there will be more losers than winners,” Mr Smith added. “Affordable, flexible travel for longer journeys will be confined to a brief window in the middle of the day.”

Sir Roy’s proposals were welcomed by Network Rail and the Association of Train Operating Companies, but were criticised by the RMT and TSSA rail unions. RMT general secretary Bob Crow said: “Attacking staff, ticket offices and jacking up fares, while the train operators are handed gold-plated franchises, is just an escalation of all the worst practices of privatisation.”

The deputy director-general of the Confederation of British Industry, Dr Neil Bentley, said: “This report is an important step towards delivering the rail network we need at a cost we can afford.

“Rail is a vital artery for businesses moving goods and people around the country, and it must be affordable, efficient and reliable. But we will not see much-needed investment in our rail network unless the Government delivers on more flexible, longer-term rail franchises, and backs modernisation of outdated working practices on the railway.”