Rail finance

Railfuture has published some graphs which show that fares paid by passengers on railways in England and Wales have increased over the years by more than the CPI measure of inflation which is favoured by economists.

The transport minister insists that he will not switch to a CPI-based formula for the calculation of regulated fares so long as the unions base wage claims on RPI, which exaggerates price inflation. However, it is too simplistic to pass all the blame on to the unions; the Department for Transport's interference in the way train operating companies manage is another factor.