Coalition Government Raises Train Prices by 25%

Posted on: 02/09/2014

Still from our Reforming the Railways programme

Still from our Reforming the Railways programme

Our programme Responsible Transportation: On the Road to Better Business, centres on the UK transport industry and we interviewed companies like Halfords, IAM, and SRL. We analyse the current state of the industry and how issues like train fare increases are affecting it.

The UK Transportation Industry is crucial to all industries as it enables people and businesses to work effectively. In 2012 UK transportation accounted for 1.45 million jobs, which was around 5% of total UK employment. This industry is dominated by SME’s (small-medium enterprises) and only 1% of companies employ over 250 people.

Train transportation is a crucial sector, and last month protests took place at train stations across the country about the Government’s plan to raise ticket prices by around 4 times inflation in 2015. This will mean that train prices will have gone up by a quarter since the coalition Government took over. Labour is saying that they’ll cap train prices, and not raise them above inflation, if they win next years’ General Election.

Transport 4

According to Campaign for Better Transport (CBT) these price hikes will make a season ticket from Brighton to London increase by £151. With annual wages only increasing by 6.9%, can the Government really justify a 25% increase in train fares? This issue looks certain to play a huge role in next year’s General Election.

For graduates interested in a career within transportation, realistically only larger companies are really likely to take large numbers of graduates. Think about rail or bus networks and providers for a start. Water transport, air transport, postal and delivery companies are all key components of the UK transport industry.

On Wednesday we are interviewing the folks at VBG Group Sales in Warrington. This is their UK division and they supply couplings for trucks, which are the mechanisms that safely connect the truck to the trailer. We’re speaking to them to find out how they fit into the UK transportation industry and to discover their unique business model.

Transportation is a hugely discussed industry, with the general public having strong views about. I look forward to posing some of these questions to the people at VBG Group in Warrington tomorrow.

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Written by Martin Stocks | @Stocks1986