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by Louise Wilson
20 August 2024
Scottish Government blames financial constraints as peak rail fares reintroduced

Fiona Hyslop said the government would be “open to considering” the removal of peak fares in the future should budgets allow | Alamy

Scottish Government blames financial constraints as peak rail fares reintroduced

Peak rail fares will return from the end of September following “limited” success in their trial removal, the Scottish Government has announced.

While passenger numbers did increase during the period of the trial, transport secretary Fiona Hyslop said it fell short of the increase needed for the policy to fund itself.

The pilot which saw all peak fares being removed across ScotRail services will end on 27 September, just shy of one year from its inception.

Over the period, the pilot cost approximately £40m in subsidies.

Hyslop said: “Although passenger levels increased to a maximum of around 6.8 per cent, it would require a 10 per cent increase in passenger numbers for the policy to be self-financing.

“The pilot will have been welcome in saving many passengers hundreds and in some cases thousands of pounds during the cost-of-living crisis but this level of subsidy cannot continue in the current financial climate on that measure alone.”

She added that the government would be “open to considering” the removal of peak fares in the future should budgets allow.

Analysis of the pilot, which compared patronage data from nine months before and nine months during, concluded the majority of people who benefited from the trial were existing rail users making existing journeys – in other words, people who would previously make their journeys in off-peak periods began travelling in peak periods.

The impact on new rail passengers was limited, with the report estimating the increase in demand was between 2.4 per cent and 6.8 per cent.

It also found people earning above average incomes were more likely to benefit from the pilot than those on low to middle incomes.

Overall, it concluded: “The pilot has been somewhat successful in meeting the objectives of increasing awareness of rail and improving access but has had minimal impacts on overall car travel and has tended to benefit those on higher incomes within the central belt.

“What is clear, however, from the robust analysis undertaken, is that there has not been a significant shift from car to rail use and limited impact in terms of meeting the first minister’s priorities for Scotland.”

Opposition parties and trade unions have said the end of the scheme will be hugely disappointing for workers.

The cost of a peak return fare between Edinburgh and Glasgow will go from £16.20 to £31.40.

But the government has announced discounts on season tickets and flexipasses to make rail travel cheaper for those who commute regularly.

The Scottish Tories have said these discounts are “no compensation” for peak fare reintroduction, with transport spokesman Graham Simpson adding: “The Scottish Government should have done far more to promote the peak fare removal. In the end, it should never have been mere numbers but having a rail system and fare system that is fair and affordable. We have gone backwards.”

Labour has said issues with reliability has meant commuters “have been forced back into cars”. Transport spokesperson Alex Rowley said: “An affordable and reliable rail service can unlock huge environmental and economic benefits, but it is clear that the SNP are incapable of taking the bold action required to do this as they keep squandering the opportunities of public ownership.”

Green transport spokesperson Mark Ruskell said: “Behavioural change doesn’t happen overnight and by making the move permanent we could have encouraged more people to change the way they travel.

“This will pile extra costs on to people at a really difficult time. Every pound that’s saved on travel is another pound that can go towards heating, eating or the many other expenses that have piled up for households and families all over Scotland.

“It is also very bad news for our environment. It sends a terrible signal and derails our climate efforts.”

Meanwhile, the Scottish Trades Union Congress dubbed the decision “regressive”. Deputy general secretary Linda Somerville said: “It’s clear that we’re facing a tsunami of cuts from government and off-peak fares are the latest for the chopping block. Despite the fiscal challenges, ministers do have a choice on what they prioritise and how they raise the money to pay for it.”

And Aslef, the union representing train drivers, has warned of the impact the reintroduction of peak fares will have on the economy.

Executive council member Jim Baxter said: “This is a decision that is a disaster for Scottish workers, the Scottish economy and the environment

“Incentivising people to make the modal shift from road to rail travel will take years of investment to make rail travel affordable and attractive. To assess this in less than a year is short sighted and speaks to a government that is not serious about meeting its own climate targets.”

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