Sandbanks Ferry allowed first fare increases since 2018

Sandbanks Ferry saves users a 25-mile car journey between Bournemouth and Swanage

The government has allowed a chain ferry company to put up fares for the first time in three years.

Car fares on Sandbanks Ferry, between Poole and Studland, will rise by up to 3.75% a year on average until 2031.

Its operator Fairacres Group told a public inquiry it needed to build up reserves to buy a new ferry in 2032.

Recommending the increases, the inquiry inspector said the firm previously prioritised shareholders over the fund but had changed its policy.

The Secretary of State for Transport accepted the inspector's report, allowing car fares to rise from £4.50 to £5 this year.

Further annual rises will see small vehicles pay £6.75 in 2031, although a discount card will offer reductions of about 30%.

Foot passengers from Sandbanks, cyclists and motorcyclists will continue to pay £1, unchanged since 2009.

Cars currently pay £4.50 for the crossing between Sandbanks and Studland

Planning Inspector Jennifer Vyse said the ferry firm revised its proposals after she opened a public inquiry in November.

She said discount rates had been enhanced, shareholders' dividends restricted and the reserve fund prioritised.

In her report, she said: "In the past... dividends were paid at the expense of building up the FRR [Ferry Replacement Reserve]... notwithstanding that previous toll increases had been allowed largely on the basis of the need to build up the fund.

"The ferry company directors have adopted a change in policy... Dividends will only be considered provided the FRR is in a strong position."

A previous application to increase fares was rejected in 2018.

The current ferry, the Bramble Bush Bay, was brought into service in 1994.

In 2019, the in-harbour drive shaft failed, leaving the vehicle out of service for three months.

Jason du Toit, general manager of the Sandbanks Ferry Company, said the firm would increase car fares to £4.75 - less than the maximum permitted amount - on Monday.

He said the "small, incremental increases" would allow the firm to maintain its current vessel "to a high standard" while also setting aside funds for a new craft.