Henry Smith MP has warmly welcomed the Prime Minister’s announcement that the Government will cap rail fares at the retail prices index (RPI) plus 1 per cent again for rail fares in 2013 and 2014.

Commenting on the Prime Minister’s pledge, Henry said:

“This rail fare cap will save the average season ticket holding local resident up to £45 per year, in addition to the £43 savings from this year’s cap.  As part of Southern Rail’s franchise agreement, the flex on Southern fares is limited to 2 per cent above the RPI+ figure compared to 5 per cent elsewhere.

“The Government’s tackling the £3.5 billion worth of unnecessary inefficiency that has been allowed to perpetuate on our rail system over the past decade.  Indeed, the nation’s rail subsidy costs were also allowed to spiral out of control during this period, increasing by £1.7 billion.

“The increase in fares is to supporting investment on the rail network. Revenue from fares is helping to deliver one of the biggest programmes of rail infrastructure investment worth £9 billion – the biggest investment in our railways for a hundred years.  This investment is being spent on improving services for commuters; with £26 million investment at Three Bridges, the new Thameslink rolling stock and the £53 million station upgrade at Gatwick.

“I know how difficult it is for people to make ends meet. That’s why I’m focussed on helping hard working families with the cost of living. That’s why I’ve supported Government efforts to freeze council tax for two years; to cut fuel duty so that it is now over 40 pence a gallon lower than it would be under Labour; and to lower taxes for 25 million people on low and middle incomes by raising the personal allowance. I will continue to vocally support any measure that helps ease the cost of living for hard working families and households.”