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Plan to keep fares rising denied | Plan to keep fares rising denied |
(about 2 hours later) | |
The government has rejected a request from train companies to make sure fares keep rising, the BBC has learned. | The government has rejected a request from train companies to make sure fares keep rising, the BBC has learned. |
Half of Britain's range of train fares is regulated and those are allowed to rise by 1% above the rate of inflation. | |
But on that basis, if there is deflation of more than 1%, it would mean that those fares have to be cut. | But on that basis, if there is deflation of more than 1%, it would mean that those fares have to be cut. |
Transport Minister Lord Adonis is expected to announce that the formula will remain in that case, which could cost the train companies millions. | Transport Minister Lord Adonis is expected to announce that the formula will remain in that case, which could cost the train companies millions. |
The BBC's transport correspondent Tom Symonds says that worried train companies have been asking the government to freeze fares for two years, but ministers have rejected their proposal. | The BBC's transport correspondent Tom Symonds says that worried train companies have been asking the government to freeze fares for two years, but ministers have rejected their proposal. |
He adds that there have been warnings that commuter train companies that are reliant on regulated fares could be heading for financial difficulties, especially as they lose passengers in the recession. | He adds that there have been warnings that commuter train companies that are reliant on regulated fares could be heading for financial difficulties, especially as they lose passengers in the recession. |
Government sources say they accept train companies could suffer, but they say they have to protect the interests of passengers, who are already paying the highest ticket prices in Europe. | Government sources say they accept train companies could suffer, but they say they have to protect the interests of passengers, who are already paying the highest ticket prices in Europe. |
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