Background to rail fares and franchising
1. In 2006, we produced two major reports on rail
passenger franchising and rail fares.[1]
We made a series of unambiguous recommendations to the Government
about how best to improve services and increase the value for
money of the railways. We were clear about the systemic problems,
and argued that these were likely to cause problems in less benign
economic climates. At the beginning of 2009, with the UK going
into recession, large increases in rail fares were introduced
across the country. These fare rises were accompanied by rumours
of franchise holders defaulting on their contracts. We felt the
two subjects merited another short inquiry to follow up our 2006
reports. Our inquiry has addressed two main areas:
a) fares—in January 2009 regulated fares
increased by an average of 6% and unregulated fares by an average
of 7%, and
b) franchising—the implications of the
recession for train operating companies (TOCs) and their rail
franchises.
2. We held two oral evidence sessions in February,
one with train operating companies, trade unions and passenger
representatives, and a further one with the then Minister of State
for Transport, the Rt Hon Lord Adonis. In June, we had a follow-up
oral evidence session with Lord Adonis to examine developments
in the intervening months.[2]
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