On 18 June, 19:14, John King <[email protected]> wrote:
> It is all rubbish anyway isn't it, how do you increase a £2.00 bus
> fare by 7%. It is probably one of those political leaks anyway where
> it says 7% and when it turns out to be only 4.5 everyone is please it
> is so low.
>
> John King.

John and all,

As I understand it was not a political leak.  There was a meeting of
the London Assembly and TfL officers were present. They were asked a
straight question about the likely level of increase in fares for 2011
based on TfL's expectation of inflation and the planning assumptions.
The Mayor adjusted the planning assumption from RPI+1% to RPI+2% last
year.  TfL apparently expect the July RPI to be round 5% therefore you
get to the 7% overall increase.

You are quite right that it is not 7% on everything - it never is
because of rounding of fares to 10p multiples. The real issue for 2011
will be whether TfL *and* TOC revenue is increasing ahead of budget as
the economy recovers or whether it falters. At present income is ahead
of budget for TfL, don't know about the TOCs.  The main consideration
will be Travelcard prices - they hardly budged last year because the
government effectively imposed a decrease in rail fares as inflation
was negative. Boris shoved fares up by considerably more than
inflation - allegedly because of a "Ken generated black hole".  I
expect everything to go up for 2011 as it is Boris's last chance to do
it - I expect the PAYG bus fare will be £1.50 with the cash fare going
to £2.20 or £2.30. That will mean a 50% increase in the PAYG bus fare
in 3 years - I think that beats any deregulated operator!

All TfL PAYG fares on rail services will go up as will cash LUL fares.
I also expect all Travelcards to rise too with comensurate increases
to PAYG daily caps.  I'm not sure whether products will change or if
more "tunes" will be played with the times for the peak / off peak
time bands.  In 2010 there were some sneaky rule changes about how the
peak vs off peak cap was set - that trick might be played again.  Note
this is all my speculation - I have not one jot of insider knowledge.
Ultimately it is the Mayor's decision but TfL do all the difficult bit
in terms of coming up with the options and estimating the likely
increase in income.

Paul Corfield

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