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Further rail reform could fund fare freeze, research suggests as tickets rise by 4.6%
Train tickets placed in a fence, in front of a train passing through Ashford, Kent

A FARE freeze could be funded through further rail reform, the RMT union proposed today as passengers were hit with yet another above-inflation hike in ticket costs.

Regulated rail fares rose by 4.6 per cent in England and Wales today under caps set by Westminster and Holyrood. 

Regulated fares include season tickets on most commuter journeys, some off-peak return tickets on long-distance routes and flexible tickets for travel around major cities.

Unregulated fairs, which typically include advance fares and first-class tickets, are set by operators and will rise by about 4.6 per cent.

The price of one-year rail cards also rose by about £5.

RMT’s analysis shows that even after Labour’s plans to bring train operations into public ownership, cash will be drained from the railway through outsourced track, train and station contracts, as well as rolling-stock leasing firms.  

RMT general secretary Mick Lynch said: “Bringing outsourced rail contracts — including cleaning, catering, and track renewals — back in-house as they expire and taking action on the profiteering of rolling-stock leasing companies could save £630 million a year, enough to fully fund a fare freeze.

“Reversing three decades of failed rail privatisation will not happen overnight, but if we want our railways to drive economic growth and cut carbon emissions, we must begin phasing out the costly and inefficient outsourcing of jobs for private profit.”

Public services campaign We Own It chief Johnbosco Nwogbo backed calls for full public ownership of the rails.

He said that 4.1 per cent of each ticket goes straight into the pockets of train leasing companies’ shareholders.

“The train leasing companies are laughing all the way to the bank — creaming off £410 million in profits in 2023.

“The government is bringing the train operating companies into public ownership; it must do the same with the train leasing companies.”

Transport Secretary Heidi Alexander said: “I understand that passengers are frustrated rail fares keep rising despite unacceptable levels of delays and cancellations, which is why this government made sure this was the lowest increase in three years, and below the growth in average earnings.”

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