Ken's £1,000 fares pledge - I'll wipe out January's fare rise next year

Transport for London’s accumulation of excess revenues mean that fares can be cut further than previously thought – meaning that Ken Livingstone will now entirely wipe out Boris Johnson’s above-inflation January fare rise if elected. And he will go further, ensuring that fares fall by seven per cent overall in the autumn of 2012, more than the five per cent fares cut he had originally proposed.

In addition his Fare Deal will directly address the spiralling cost of bus travel by taking the price of a single Oyster bus journey back to 2010 prices. In an unprecedented last-minute change to London’s fares, last week the Conservative Mayor has condemned Londoners to big fare rises for the New Year.

Londoners are now paying hundreds of pounds a year more to travel by bus, tram, tube and train with a single bus ticket up 50% under Boris Johnson, a weekly bus and tram pass up 38% costing Londoners £260 a year more and a zone 1-5 Travelcard is up 20%, costing Londoners £436 a year more.

Ken Livingstone outlined his more extensive Fare Deal plan today, confirming that if elected next May he would introduce an emergency fares package in the autumn of 2012:

1. Cutting fares by 7%, wiping out the steep fare increases planned by Boris Johnson and taking fares back to at least 2011 levels. Boris Johnson’s January rise will see fares up by 5.6% in 2012. Ken’s cut will save the average Londoner £1000 over four years.

2. Additionally cutting bus fares from £1.35 to £1.20, an 11% cut.

3. Ken’s Fare Deal will also see fares frozen in 2013 and the end of Boris Johnson’s plan for an above-inflation rise after that.


Ken Livingstone said:

“Last week Boris Johnson failed to deliver the fares cut Londoners want and need, despite huge popular pressure for lower fares. He was told Londoners wanted a cut, but he stuck with a rise.

“Today I am setting out how I will deliver the change that people are calling for, by wiping out his fare rise altogether, and going further still.

"The Tories say my fares cuts are not affordable. The truth is that we can go further.“I want to use the excess money that is sitting idle in Transport for London’s budget to fund a fare cut that will cut the cost of travel for millions of Londoners.

“That’s the responsible thing to do in tough times – using the surplus in the transport network to cut the fares.

“My seven per cent fare cut overall, with an additional eleven per cent bus fare cut, will save the average Londoner £1000. It’s a costed and affordable plan that puts the interests of Londoners first.

“The choice could not be clearer: I have promised to cut the fares to help reduce the squeeze on ordinary Londoners – Boris Johnson has promised to keep raising fares over the next four years.”


Val Shawcross AM said,

''Our commitment to cut the fares will put the interests of Londoners back at the heart of transport policy. It's unfair that the poorest are bearing the burden of Boris Johnson's 'high fare policy', especially women and part time workers.

''It Is simply not acceptable that the Conservative Mayor is refusing to use TfL's operating surplus to cut the fares in these tough times."

The most recent TfL financial report showed a £206 million unplanned operating surplus which is sitting unused in the transport budget. The operating surplus income comes from increasing fare revenues (high fares) and lower operating expenditure in the first 6 months of this year alone. Last year the annual operating surplus eventually rose to £729 million.Whatever the final outcome of this year’s budget surpluses it is clear that the tendency towards surpluses in the budget permits bigger benefits to transport users through further lower fares.


1. Ken’s Fare Deal

Under Ken’s Fare Deal, fares will be cut in the autumn by 7%, then frozen for 2013. There will also be no increases above inflation in future years.
Under Boris Johnson they will rise every year above inflation.Ken has also promised to reinstate the zones 2-6 one day travelcard, which was abolished by Boris Johnson earlier this year, forcing users to pay 74 per cent more for an alternative travelcard - http://www.kenlivingstone.com/fare-deal---ken-to-reverse-74-fares-stealth-tax-with-new-zonesavKen has pledged to introduce an emergency fares package if elected in May 2012 which would take effect in October 2012.


2. Boris Johnson’s £206mn transport surplus

The latest TfL board papers showed in the first half of the present financial year there was £206million more in the TfL budget than budgeted for in the business planAs the TfL accounts make clear the operating surplus is a completely separate budget to capital budgets which fund investment.To see TfL’s operating surplus go to: http://www.tfl.gov.uk/corporate/about-tfl/boardandchiefofficers/papers/1446.aspx (Nov 23, Item 4 (p.18)

3. Ken's fare deal will save Londoners £1000As point 4 below shows, the additional annual cost of Boris Johnson's inflation-busting fares varies from £260 to nearly £460.
Over 4 years the difference between Ken Livingstone's fares cuts and Boris Johnson's above-inflation increases will easily accumulate to over £1,000 on average.


4. What Boris Johnson’s 2012 fare rises mean for Londoners

A single bus ticket is up 50% under Boris Johnson· was 90p in 2008· will be £1.35 in 2012

A weekly bus and tram pass is up 45% under Boris Johnson· was £13.00 in 2008· will be £18.80 in 2012 Costing Londoners £301.60 a year more

A weekly zone 1-2 travelcard is up 21% under Boris Johnson · Was £24.20 in 2008· Will be £29.20 in 2012 Costing Londoners £260 a year more

A weekly zone 1-4 travelcard is up 21% under Boris Johnson· was £34.60 in 2008· will be £41.80 in 2012 Costing Londoners £374.40 a year more

A weekly zone 1-6 travelcard is up 20% under Boris Johnson · was £44.60 in 2008· will be £53.40 in 2012Costing Londoners £457.60 a year