Conservatives refuse to reduce train fares

Rail commuters face big fare rises after the Government refused to adopt a Liberal Democrat election pledge to cut the cost of train travel.

The Lib-Dems wanted to change the formula which allows train companies to raise regulated fares annually by one per cent above the Retail Prices Index rate of inflation.

But Tory Transport Secretary Philip Hammond said that although the coalition government was committed to having a "fair fares" policy there was "no specific commitment" to changing the formula.

The January rises are based on the RPI figure from the previous July. With inflation now 5.3 per cent it seems likely that the January 2011 rise will be hefty.

Mr Hammond said the Government had to be "realistic" about the economic situation and that making changes would be "difficult".

"We have made a commitment to having fair fares but we don't have a specific commitment to changing the formula," he said.

Mr Hammond added that the Government was committed to helping Mayor Boris Johnson deliver the £16 billion Crossrail scheme, which is due for completion in 2017.