Rail fare hikes 'blow to small business'

New year train fare increases of up to 14.5% will hit small and medium enterprises (SMEs) particularly badly, according to the Federation of Small Businesses (FSB).
The above-inflation price rises, labelled 'unfair and unjustified' by rail group watchdogs, come despite claims of punctuality problems, overcrowding and poor service on many of the lines affected.

FSB spokesperson Matthew Knowles said that the rises would cause SMEs huge financial pressures as staff ask for higher salaries, increasing business costs which would then be passed down to the consumer.

Speaking on the Small Business website, Mr Knowles said that business managers cannot take advantage of cheaper fares by booking ahead, as meetings often come up at short notice.

The problem will be particularly pronounced for SMEs in the South East, which has seen some of the UK's biggest increases. Southeastern Railway's weekly season ticket from Hayes, Kent to London has gone up from £24.80 to £28.50, a rise of 14.5%.

Another price rise affects passengers travelling on First Great Western's Maidenhead to London line, one of the country’s worst-performing services. Annual tickets will increase by nearly 10%, despite season-ticket passengers already qualifying for a discount due to persistent late-running.

So incensed are First Great Western passengers that thousands are threatening to stage a "fare strike" tomorrow in protest. More Trains Less Strain, a commuter campaign group, told The Times it plans to issue passengers with false tickets containing wording such as "Worst Late Western" to hand to rail staff instead of their regular tickets.