Railways: Fares

Lord Snape Excerpts

Tuesday 31st January 2017 Lords Chamber

[Lord Ahmad of Wimbledon]

I think that I follow the thread of my noble friend’s remarks. I agree with him about the importance of giving certainty to those who are affected. We are adhering to the position that the Government have taken, which was a manifesto pledge.

[Lord Snape (Lab)]

My Lords, does the Minister agree that, as recently as 2008, 50% of train fares in the United Kingdom were met from the Treasury, and the same proportion was paid for by the train traveller? As that percentage has now been skewed to 27% by the Treasury and the remainder by the traveller, does that not have some impact on the mechanism for fare increases on an annual basis?

[Lord Ahmad of Wimbledon]

Again, the noble Lord raises an important point. If we were to put figures to that, there is about £4.8 billion in government subsidy. He is quite right that the rest comes from rail revenue, which is about £9.8 billion. It is important that there has been a review of the current process; we should await the outcome of that consultation and the Government will then take any necessary decision at that time.