Fares could rise above inflation again next year, Assembly hears

17 JUNE 2010

High inflation could mean Londoners are hit by a big rise in public transport fares next year, the London Assembly heard today.

Transport for London told the Assembly’s Budget and Performance Committee that high inflation is affecting its costs and some of that may need to be passed onto passengers next year.

TfL is therefore likely to recommend to the Mayor that fares from January will need to rise by two percent on top of the rate of inflation, which would be seven percent based on current figures. [1]

Fares already increased by an average of 12.7 percent on buses and 3.9 percent on the Tube in January this year.

John Biggs AM, Chair of the London Assembly Budget and Performance Committee, said: “Londoners have already been hit by a hike in fares this year, particularly bus passengers, who bore the brunt of the rises.

“We are looking at how the existing fare increases have already affected passengers in the capital and we will also assess whether further rises on the scale suggested today by Transport for London can really be justified.” [2}

Notes for Editors:

  1. The Mayor’s fares decision is usually based on the Retail Price Index (RPI) in July of the previous year. The current RPI is 5.1 percent and is not expected to change significantly by July.
  2. Further details of the Committee’s ongoing investigation can be found here
  3. A webcast of the Committee meeting can be viewed here
  4. The Chair of the Budget and Performance Committee, John Biggs AM, is available for interview. See contact details below.
  5. As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.

For media enquiries, please contact Julie Wheldon/Lisa Moore on 020 7983 4228/4283.  For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer. Non-media enquiries should be directed to the Public Liaison Unit on 020 7983 4100.