Yesterday the Conservative party announced that if elected to government it would freeze regulated train fares in real terms for the next Parliament.
Train fares have gone up a lot under both Labour and the Coalition in recent years. With current low rates of inflation the pledge is a helpful one to all who use the railways to get to and from work daily and who pay the peak regulated fares as a result. There are some very good value off peak fares available for occasional travel which are not regulated.
The sharp fall in real living standards which occurred in 2007-9 during the Great Recession has taken time to reverse. It is good news that now wages and salaries are on average going up by more than prices. Falling energy prices and a rail fare freeze in real terms for commuters and season ticket buyers will help in the months ahead if Conservatives are elected.
Published and promoted by Thomnas Puddy for John Redwood, both at 30 Rose Street Wokingham RG40 1XU
April 11, 2015
If this Marxist interference in markets is good news for rail passengers why wouldn’t it be good news for energy users?
April 11, 2015
I could not agree more with Ian above. I am disappointed that you can report this in the positive (although decidedly unenthusiastic) manner in which you have.
This is a thoroughly bad thing for any govt. but particularly a Conservative govt. to do.
Once you start freezing items where do you stop?
April 12, 2015
Thought train fares were set by the rail franchise companies, has this changed.
April 13, 2015
Please can you elaborate as to why freezing rail fares is good but freezing energy is bad.
I am not disputing this, just would like to understand the economics behind it.
Reply Because the railway is a state owned monopoly that can exploit customers, and energy is a competitive market where competition can bring prices down.
April 14, 2015
you have previously argued that rail users should pay the true cost of the service they use. This subsidy seems to have changed your view. What do you think is a fair level of subsidy for rail users?
Reply I have always wished to get the subsidy down, by improving the efficient of the railway.