In a landmark move for Britain's transport sector, Chancellor Rachel Reeves has confirmed a complete freeze on rail fares as part of the Labour government's Autumn Budget. This represents the first such freeze in three decades.
Substantial Savings for Commuters
The Chancellor outlined that there will be no price increases for season tickets, peak returns, and off-peak returns connecting major cities. This decision means that commuters travelling on the most expensive routes will save more than £300 annually.
Transport Secretary Heidi Alexander stated: "We all want to see cheaper rail travel, so we're freezing fares to help millions of passengers save money." She emphasised that this forms part of wider government plans to rebuild Great British Railways into a service the public can be proud of and rely on.
Industry Reaction and Broader Context
Antonia Medlicott, founder of Investing Insiders, welcomed the announcement: "Any freeze on price increases is good news and should be celebrated, as railways are expensive to run and the Government will be shouldering those extra costs."
However, she highlighted that UK rail fares remain among the most expensive in Europe, with typical peak single fares between cities costing twice as much as comparable journeys in other EU countries. Medlicott noted that these high prices deter train travel and increase car dependency, calling for long-term government investment to promote national growth.
Other Key Budget Announcements
Beyond transport, the Autumn Budget delivered significant changes to savings policy. The Cash ISA annual allowance has been cut from £20,000 to £12,000, though this reduction will not apply to over-65s who retain the £20,000 limit.
Financial expert Martin Lewis commented on the change, noting the shares ISA allowance remains at £20,000. He explained the policy aims to encourage younger people to invest rather than save, acknowledging that while he would have preferred incentives rather than restrictions, the £12,000 allowance still represents "a reasonable whack for many people."
