Fares on Transport for London could rise by the rate of inflation plus 1 per cent, London Mayor Sadiq Khan has warned, as negotiations over the government funding of TfL continue.
The Retail Prices Index for July was 12.3 per cent, the Office for National Statistics has announced.
The government has already indicated that any increase in regulated fares on National Rail next year will be under the July inflation rate and has also postponed any changes until March for the second year running.
Although the DfT cannot set the rates of TfL fares, which are legally controlled by the Mayor, it can make an increase a condition of the funding which TfL needs.
Mr Khan said in a BBC interview that passengers could not cope with an increase based on the inflation rate.
He said: ‘If the government insists on inflation plus 1 per cent, that could see Londoners paying fare increases of 13 or 14 per cent in January. That’s not on, not fair, and I will resist that.’
Transport secretary Grant Shapps said: ‘The balance we have come to here is the right one. It is the only offer which is on the table. There will not be a further one but we will work with TfL on the technical details to assist them.
‘I very much look forward to this being put to bed so that Londoners don’t have to keep hearing about stories about TfL needing more money and coming out with the begging bowl.’
The talks with the DfT over TfL funding in recent weeks are reported to have been stormy, with Grant Shapps also said to be insisting on the introduction of driverless Underground trains as part of the settlement.