Government wants London Tube and bus fare increase

The Transport Secretary said fare increases will be assumed as the “baseline” for negotiations on future funding

The government is expecting London’s mayor to put up Tube and Bus fares by nearly five percent in line with what they announced for rail fares in the Budget.

A post-Budget letter to the Mayor of London from Transport Secretary Louise Haigh hints that the amount of investment transport in London gets over the next few years could depend on whether Sadiq Khan agrees not to freeze fares again.

It said fare increases will be assumed as the “baseline” for negotiations on future funding.

City Hall said a decision on fares for next year had not yet been made.

In the Budget on Wednesday, it was announced that regulated rail fares would rise by 4.6% - one percent above inflation - next year.

In her letter, Ms Haigh said the government expects the mayor "to consider the full range of revenue raising powers at your disposal as part of TfL’s business planning".

She added that an assessment of TfL’s funding needs “will be conducted against a baseline scenario where TfL rail fares rise in line with national rail fares.”

For five out of the last eight years, Mr Khan froze TfL fares, although not including travel cards and pay as you go Oyster caps.

The mayor transferred funds from City Hall to Transport for London to cover the cost of the loss of income from a freeze.

It comes after Mr Khan halved - compared to last year - the minimum amount of money he is asking for from the government to fund major transport projects.

A spokesperson for the Mayor said: "Once a final decision on the 2025 fares package has been made, this will be published as per usual".

The Department for Transport has been contacted for a response.