In the News

Rail Economics: Explaining the increase in UK Rail Fares

Graham Watson

22nd January 2018

The FT looks at the recent 3.4% increase in season ticket and off-peak rail fares, and drills down into the price increase, arguing that the train operating companies (TOCs) only earn a small margin on each £ spent on the railways.

He notes that the government has taken a decision to increase the proportion of the cost of the railways onto passengers and away from the taxpayer. There's much sense of this - but should taxpayers subsidise rail travel because of the positive welfare effects rail has on the UK economy.

Rail Economics: Explaining the increase in UK Rail Fares

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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