Rail fare hike: the 10 worst London commutes

Today's spike in train fares hits some journeys harder than others.

A moment's silence for those of us who have to get around by train. Over the last month we have had to deal with floods, signal failures, staff shortages and overcrowding. Now comes the news that rail fares are to be hiked once again.

The average rise is only 4.3 per cent, but as long as they stick to this average, train companies can increase the prices of some tickets as far as they like. The result is uneven, some routes are hit worse than others. Campaign groups point out that this is the 10th successive above-inflation rise, London commutes being particularly affected. Here are the 10 worst hit London travel routes:

1. Sevenoaks to London has gone up 87 per cent in the last 10 years. Weekly tickets have gone from £41.50 to £77.80 and season tickets from £1,660.00 to £3,112.00.

2. Ashford International in Kent to London has gone up 80 per cent in the last 10 years. Weekly tickets have gone from £66.50 to £119.50, and season tickets from £2,660.00 to £4,780.00.

3. Bracknell to London has gone up 78 per cent in the last 10 years. Weekly tickets have gone from £55.70 to £99.00, and season tickets from £2,228.00 to £3,960.00.

4. Canterbury to London has gone up 78 per cent in the last 10 years. Weekly tickets have gone from £67.50 to £120.30, and season tickets from £2,700.00 to £4,812.00

5. Tunbridge Wells to London has gone up 71 per cent in the last 10 years. Weekly tickets have gone from £60.30 to £103.30, and season tickets from £2,412.00 to £4,132.00.

6. Maidstone to London has gone up 68 per cent in the last 10 years. Weekly tickets have gone from £59.00 to £99.00, and season tickets from £2,360.00 to £3,960.00.

7. Tonbridge to London has gone up 68 per cent in the last 10 years. Weekly tickets have gone from £56.00 to £94.20, and season tickets from £2,240.00 to £3,768.00

8. Gillingham to London has gone up 67 per cent in the last 10 years. Weekly tickets have gone from £55.10 to £91.80, and season tickets from £2,204.00 to £3,672.00.

9. Hastings to London has gone up 59 per cent in the last 10 years. Weekly tickets have gone from £72.00 to £114.60, and season tickets from £2,880.00 and £4,584.00.

10. Eastbourne to London has gone up 58 per cent in the last 10 years. Weekly tickets have gone from £68.00 to £107.60, and season tickets from £2,720.00 to £4,304.00.

The data came from Campaign for Better Transport, and was calculated using the weekly and season ticket prices between 2003 and 2013. It took inflation into account. (There is not yet a complete data set for travel routes outside London).

Stephen Joseph, the executive director of Campaign for Better Transport, said:

“These fare spikes are bad for people and bad for the environment. Once again, the Government is talking tall but walking short when it comes to ensuring the transport sector tackles climate change. If it is serious about tackling climate change, it must ensure train journeys are an attractive, affordable option for people.”

The average rise in fares is 4.3 per cent. Photograph: Getty Images
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Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation