Press Watch: Warning on train fares hike

Hammond conceded that the formula used to link fare increases with inflation may not survive the autumn round of cuts.

“We hope we will be able to hold on to the formula, but we need to wait for the spending settlement before I can say exactly what I have to do next year,” he said.

At present, regulated fares, which include peak-time journeys and season tickets, increase by the retail price index plus 1% – a formula that would lead to a 6% rise in January if the current rate of inflation applies next month.

Any change would affect cross-border services on the East and West Coast main lines between London and Scotland.

However the power to change fares charged by ScotRail – responsible for more than 95% of passenger journeys in Scotland – lies with Holyrood.

Transport union leader Bob Crow, general secretary of the RMT, yesterday promised to “stop the Government in their tracks” if train fares rose and rail investment was cut.