Press Release


Tuesday 17 April 2012

LONG TERM PAIN FOR LONDON FAREPAYERS

Londoners would be up to £750 worse off under Ken Livingstone’s dangerous and reckless transport plans, new figures reveal.

The figures show that Mr Livingstone would have to increase fares by a massive RPI +38% in 2015 to maintain the current investment if he ever went ahead with his transport policy of cutting fares in the short term.

The revelations blow a massive hole in Mr Livingstone’s key election promise, confirm what experts have said all along, and clearly set out why carrying out such a plan would cause financial chaos for Transport for London and cause long-term damage to London’s transport network.

A spokesman for Boris Johnson’s re-election campaign said: ‘This confirms what independent experts have said all along and what Ken Livingstone has refused to admit to Londoners. His dangerous transport policy would wreak havoc on London’s transport network.

‘It would leave Transport for London in financial chaos, meaning hard-pressed Londoners would be hit with massive fare hikes in the future to pay for his short term cut. The hikes would be the biggest overall fares rises under any London Mayoralty.

‘It goes to the heart of this election, that Londoners cannot trust Ken Livingstone with their money and in his last bid for power he will do and say anything to get back into City Hall.

‘His claims are not only fraudulent, they present a very real risk to the future prosperity of London, putting both jobs and economic growth at risk.’

Notes to Editor:

How much Ken Livingstone will really cost you

Despite his claims, Ken Livingstone knows that his fare cut will not save Londoners money. In fact, it will cost Londoners more money in the long term, as he stores up massive financial problems that would hit all commuters in three years’ time.

This would leave many Londoners hundreds of pounds worse off, as TfL would be forced to levy massive hikes in order to stop the money running out.

TfL internal documents confirm that a bail out would see fares go up by RPI +38% in 2015. This is what it would mean for Londoners.

Methodology

The calculations are based on:

  • What the fare level would be on a range of Travelcard types by 2015 if the fares were cut by 7% this year, frozen at that level in 2013, increased by RPI in 2014 and by RPI +38% in 2015.
  • Treasury estimates of inflation. This shows RPI will be 2.8% in 2013 (HMT, Forecasts for the UK Economy, February 2012, link). The independent average compiled by the Treasury estimates that RPI for 2014 is 2.9% and for 2015 3.3% (ibid.).

Impact on Londoners

Like all promises made by Ken Livingstone, you always end up paying more in the end. Every commuter would suffer steep increases in the cost of Travelcards:

  • A Londoner buying an annual Zone 1-6 Travelcard would pay £752 more than today
  • A Londoner buying an annual Zone 1-4 Travelcard would pay £588 more than today
  • A Londoner buying an annual Zone 1-2 Travelcard would pay £411 more than today
  • A Londoner buying an annual bus and tram pass would pay £264 more than today
  • A Londoner buying a monthly Zone 1-4 Travelcard would pay £56 more than today
  • A Londoner buying a monthly Zone 1-6 Travelcard would pay £71 more than today
  • A Londoner buying a weekly Zone 1-6 Travelcard would pay £18 more than today

For the increases in full, see table in attached pdf.

Attached files

Long term pain for London FarepayersLong term pain for London FarepayersLong term pain for London FarepayersLong term pain for London Farepayers

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