Train fare hike

Rail passengers in the East Midlands are facing annual fare increases of nearly 3.5 per cent above the rate of inflation.

The announcement comes from bus and train firm Stagecoach which has just won the contract to operate rail routes in the region.

The company says it plans to win back customers from the car by delivering a high quality service.

The Department for Transport said that the firm would be allowed to increase ticket prices by 3.4 percent a year on top of inflation on unregulated fare routes, while regulated routes would see fares rise up to 1 per cent a year above inflation.

Gerry Doherty, general secretary of transport union TSSA said he had already complained to the Office of Fair Trading about the price rises.

He added: "This sends out completely the wrong message to all the other rail companies. If Stagecoach can get away with ripping off passengers at every turn, others will be tempted to follow suit.

The hikes come as cutbacks on off-peak travel are imposed and guards are being threatened with the sack if they do not impose maximum fares on passengers who cannot even buy a ticket because queues are too long at booking offices.

© Independent Television News Limited 2007. All rights reserved.