Rail passengers in England can breathe a sigh of relief this year, thanks to a surprise announcement from the government: rail fares will remain frozen in 2026, marking the first fare freeze in 30 years. The move is seen as a key victory for Chancellor Rachel Reeves and Prime Minister Keir Starmer's administration, aimed at mitigating the effects of inflation and supporting economic growth.
Reeves' budget, set to be unveiled later this week, will also see tax increases, including income tax thresholds being frozen, with billions more raised through smaller revenue-generators such as taxing electric vehicles. The plan is designed to address concerns about household spending, NHS waiting lists, and national debt.
The decision has been welcomed by public transport advocates, who have long highlighted the disparity between fuel duty freezes for motorists since 2010 and rapid rises in rail fares. Campaign for Better Transport chief executive Ben Plowden described it as "a positive sign that affordability for passengers is being given high priority".
Aslef, the train drivers' union, also welcomed the decision, saying it was a "right move" to support commuters. Mick Whelan, outgoing Aslef general secretary, noted that after 14 years of Conservative-led fare hikes, Labour's government has helped people get back on the rails.
This freeze will save typical commuters around Β£300 per year on journeys between Milton Keynes and London or Bradford and Leeds, with benefits for those using flexi season tickets. While it's not a full-scale reversal of fare rises, it represents a significant gesture to ease pressure on household finances during difficult economic times.
Critics remain wary about the potential tax burden, but Starmer has said he expects consumers will respond positively to measures such as this one, which could help define his and Reeves' political legacies. With markets now breathing a bit easier and public opinion potentially shifting in their favour, it remains to be seen whether the government's efforts can sustain momentum over the coming months and beyond.
Reeves' budget, set to be unveiled later this week, will also see tax increases, including income tax thresholds being frozen, with billions more raised through smaller revenue-generators such as taxing electric vehicles. The plan is designed to address concerns about household spending, NHS waiting lists, and national debt.
The decision has been welcomed by public transport advocates, who have long highlighted the disparity between fuel duty freezes for motorists since 2010 and rapid rises in rail fares. Campaign for Better Transport chief executive Ben Plowden described it as "a positive sign that affordability for passengers is being given high priority".
Aslef, the train drivers' union, also welcomed the decision, saying it was a "right move" to support commuters. Mick Whelan, outgoing Aslef general secretary, noted that after 14 years of Conservative-led fare hikes, Labour's government has helped people get back on the rails.
This freeze will save typical commuters around Β£300 per year on journeys between Milton Keynes and London or Bradford and Leeds, with benefits for those using flexi season tickets. While it's not a full-scale reversal of fare rises, it represents a significant gesture to ease pressure on household finances during difficult economic times.
Critics remain wary about the potential tax burden, but Starmer has said he expects consumers will respond positively to measures such as this one, which could help define his and Reeves' political legacies. With markets now breathing a bit easier and public opinion potentially shifting in their favour, it remains to be seen whether the government's efforts can sustain momentum over the coming months and beyond.