London businesses are likely to have a drop in trade, as potential customers will be put off from coming into the capital by recently announced 100% train fare increases, the city’s travel watchdog has warned.
This month rail operator First Capital Connect announced that it was doubling fares on some lines as a way to reduce overcrowding on its trains.
Also, passengers are no longer able to use ‘cheap day return’ tickets between the times of 4.30 p.m. and 7 p.m.
The measures were described as ‘very crude’ by Brian Cooke, chairman of London Travelwatch, who is warning that the tourist sector and retailers are likely to feel the impact that the huge fare increases are likely to have.
Mr Cooke told Crimson Business: “There could be an impact on business in London particularly in the holiday seasons as it will put people off from coming into the Capital.
“If families, for instance, wanted to have a day out to see the sights then they will have to pay a lot more to do so.
“Also, if they want to go home at a reasonable time they will find they have to pay a 100% increase.
“To a degree, retail will be affected as well, as if you are travelling from Peterborough, for instance, you might decide to go elsewhere as the fares will be cheaper.”
First Capital Connect said the price rise was intended to reduce passenger numbers.
A spokesperson from the rail operator told Crimson Business: “Our trains are very overcrowded, that’s why we have introduced these restrictions.”
Alistair Darling, who was the transport secretary when First's £800m rail franchise deal was negotiated, made no mention of the fare increases at the time the decision was announced and claimed that passengers could, in fact, expect better services and increased capacity.
Darling is now in charge of the Department of Trade and Industry (DTI), the government department responsible for helping businesses.
A Department of Transport spokesperson said it makes sense for the company to impose the price rises.
© Crimson Business Ltd 2006
