Government Pushes for London Tube and Bus Fare Increase Amid Budget Talks

The government is urging London’s mayor to raise Tube and bus fares by nearly five percent, aligning with the recently announced rail fare increase. This was reported by the railway transport news portal Railway Supply.

This move reflects a broader push to adjust London Tube fares, as highlighted by Transport Secretary Louise Haigh in her post-Budget correspondence with Mayor Sadiq Khan, emphasizing the need for fare hikes.

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Haigh’s letter implies that future transport funding for London may depend on Khan’s agreement to avoid another fare freeze. It suggests fare increases as the “baseline” for upcoming funding discussions, signaling the government’s strong stance on revenue adjustments. City Hall, however, states no final decision has been made about fares for the coming year.

The government disclosed in Wednesday’s Budget that regulated rail fares would climb by 4.6% next year, exceeding inflation by one percent. Haigh urged Khan to explore all revenue-generating tools available through Transport for London (TfL) as part of his business planning. She also noted that the assessment of TfL’s funding needs will factor in a “baseline” scenario in which TfL fares follow national rail fare trends.

Historically, Mr. Khan froze TfL fares for five out of the past eight years, though this did not cover travel cards or Oyster caps. During these freezes, Khan allocated funds from City Hall to offset TfL’s revenue losses, demonstrating his support for affordable transit access. However, this year, Khan reduced his government funding request for major transport projects by half, possibly to show a willingness to compromise.

The Mayor’s office clarified that any finalized fare decision for 2025 would be announced publicly, as per protocol. Meanwhile, the Department for Transport has been contacted for a formal response, as officials await further insights into the potential fare changes.

Photo, source: www.bbc.com

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