Possible U-turn

Discussion in 'UK Railway Discussion' started by WatcherZero, 24 Nov 2011.

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  1. WatcherZero

    WatcherZero Established Member

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  3. Paul Sidorczuk

    Paul Sidorczuk Veteran Member

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    The report states that the DfT are privately optimistic of success in its negotiations with the Treasury, but given the current financial situation in which the country finds itself, then any negotiations with the Treasury are going to be very difficult indeed.
     
  4. jcollins

    jcollins Veteran Member

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    I think Greening's argument seems to be a bigger fare increase will see people trying to use the train less which won't generate as much extra revenue as the government were hoping for.

    If it's approved at the expense of Eric Pickles' plan for weekly bin collections to be reinstated then it'll probably be seen as a good move. If, however, it's approved at the expense of slowing down the Lib Dem's plan of the first £10,000 of earnings to be non-taxable then it wouldn't be seen as a good move.

    It should be noted that improved public transport links could help put unemployed people in to work and it can also attract businesses to areas they wouldn't have previously considered.
    --- old post above --- --- new post below ---
    Of course it's a 2% on average increase. An operator is free to put up a £5 fare by a lot more than 2% and to freeze a £10 fare to balance it out.
     
  5. Schnellzug

    Schnellzug Established Member

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    But it's the chicken, and it's the Egg, isn't it. The Government says that putting up fares will "Pay for Improvements", but that'll be a fat lot of use if only the upper 2% in society can afford to use these Improved services.

    And can anyone explain to me why it's fare for fairs in Cornwall to go up in order to pay for "Improvements" in, as usual I suppose, the WCML, which has been "Improved" unendingly for 10 years or more. Surely all these Improvements should have it in a rare state of perfection by now.
     
  6. jcollins

    jcollins Veteran Member

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    It isn't any more than it's fair for Northern, ATW and FGW passengers to have to fund Pacer replacements when LO and LM passengers didn't fund 150 replacements.
     
  7. bignosemac

    bignosemac Established Member

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    Surely too late in the day for this change? The new fares go live on 5th December for journeys booked for travel after 2nd January 2012.

    Fares managers will have kittens if they've got to get their abacuses out again!

    Oh, and aren't some new fares (seasons mainly) already beginning to appear?



    MODS: Possibly better if this topic was in 'Fares, Tickets & Routeing'
     
    Last edited: 24 Nov 2011
  8. shinkansen1966

    shinkansen1966 Established Member

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    The RPI+3% rail fares rises is nothing do with paying for improvements. It's the government's excuse to raise fares above inflation and then collect the extra revenue to pay down the national debt.
     
  9. WatcherZero

    WatcherZero Established Member

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    Or rather reduce the Dfts revenue budget, same net effect though.
     
  10. All Line Rover

    All Line Rover Established Member

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    Considering this is the first major "story" about Ms Greening, I wouldn't say that this is a bad sign. First impressions are good! :)
     
  11. WatcherZero

    WatcherZero Established Member

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    New minister, fresh putty for civil servants to mould.
     
  12. Greenback

    Greenback Emeritus Moderator

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    It's a fallacy in any business to work on the assumption that a price increase increase of x% will lead to a revenue increase of exactly the same percentage. But I'm sure the expert minds in government are well aware of that!
     
  13. WatcherZero

    WatcherZero Established Member

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    It is their argument against the 50p tax rate as well!
    Theyve commisioned the OBR to do a study on that, the figures I saw from the Treasury suggested it caused £1.4bn of extra tax avoidance but raised £2.2bn for a net £800m profit to the Treasury but we will see what the 'independent' OBR tells them.



    Now confirmed.
     
    Last edited: 26 Nov 2011
  14. tbtc

    tbtc Veteran Member

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  15. shinkansen1966

    shinkansen1966 Established Member

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    Will all regulated fares be subject to George Osborne's autumn proposals ?

    And will this come into effect at January 2012 fares rise ?

    Apparently, the news fares cap will be used in London too.
     
  16. WatcherZero

    WatcherZero Established Member

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    Thats because Westminster subsidises Londons Underground fares to the tune of around a billion a year, much smaller subsidy goes from Tfl to Tramlink as well (£17m or £27m, something like that), dont know if Dlr recieves fare subsidy.
     
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