Passengers 'punished' as rail fares hiked by nearly 5% - Sky News

Cash-strapped train travellers are being priced off the railways, campaigners have warned as fares in England and Wales are hiked by nearly 5% despite high levels of cancellations.

Critics argue passengers are being "punished" and will be angry at Sunday's rises given the "shocking state" of the network, against a backdrop of disruption caused by rail strikes.

Sky News has previously revealed that even before the latest increases came into effect, the UK has the most expensive train tickets in Europe.

The issue is likely to be a battleground at the next general election, with Labour vowing to bring the railways back into public ownership as contracts expire.

Regulated rail fares in England and Wales have been capped at 4.9%.

These include season tickets on most commuter journeys, some off-peak return tickets on long distance routes and flexible tickets for travel around major cities.

Train companies set unregulated fares such as advance singles, although their decisions are heavily influenced by the government.

More on Rail

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The Scottish Government will increase ScotRail fares by 8.7% from 1 April.

Chris Page, who chairs pressure group Railfuture, said: "Why are rail passengers being punished year after year with inflation-busting fare rises?

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"No matter that there's a cost-of-living crisis, no matter that we're facing a climate emergency, the government seems more determined than ever to price us off the railway and on to the roads."

Read more:
What it's like travelling on some of the country's worst rail routes

Campaign for Better Transport campaigns manager Michael Solomon Williams said: "At a time when we urgently need to encourage people to take the train, the public will rightly be angry to discover that it has just become even more expensive to do so.

"We know that people will decide to drive or fly if the train is too expensive, so this is bad news for our personal finances, the wider economy and the environment."

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UK has most expensive train tickets in Europe

Labour's shadow transport secretary Louise Haigh said: "This fare rise will be tough for passengers to stomach given the shocking state of rail services up and down the country.

"Since coming to power in 2010 the Tories have hiked fares by almost twice as much as wages, and now passengers are being asked to pay more for less."

Rail minister Huw Merriman said last month the UK government had attempted to "split the balance between the UK taxpayer and the fare payer" in relation to price rises, which he described as being "well below inflation".

Office of Rail and Road (ORR) figures show the Westminster administration provided £4.4bn of funding to train operators in Britain in the year to the end of March 2023.

Last July's Retail Prices Index measure of inflation, which is traditionally used to determine annual fare rises, was 9%.

The Consumer Prices Index, which is a more commonly used inflation figure, was 6.8% in July 2023 but fell to 4% in January.

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Lord Sugar reboots the famous Amstrad brand for his grandson's business 17 years after selling it to Sky - Daily Mail

By Cameron Roy

Published: 19:09 EST, 3 March 2024 | Updated: 19:10 EST, 3 March 2024

Lord Alan Sugar is set to revive his famous brand Amstrad with the launch of a digital marketing company led by his grandson, 17 years after selling the business to Sky. 

The tycoon, who fronts BBC One reality series The Apprentice, bought back the rights to the household brand name for new agency Amstrad Digital. 

Lord Sugar criticised the 'belligerent' old management at Sky, prior to it being taken over by US media giant Comcast in 2018, for not allowing him to buy back the name. 

'I had always asked, since 2007, to have it back because I want to give it down to the family to use in their business,' he said. 

The businessman founded electronics company Amstrad in 1968 at the age of 21, selling audio and computer equipment before making the first range of Sky receivers and dishes. 

It was eventually sold to the broadcasting giant for £125million. Sky still uses the software but not the brand name.

The new performance marketing agency Amstrad Digital will be headed up by Lord Sugar's grandson Joe Baron, and Tom D'Arcy, who both worked at rival digital marketing agency Climb Online. 

Climb Online was launched by The Apprentice winner Mark Wright with the investment of Lord Sugar, and sold in 2022 for a reported £10million. 

'They've got the brand name – that in itself is worth a fortune, and they've got to exploit it. And I want to see some money,' Lord Sugar said. 

The business mogul criticised work-from-home culture, brought about by the Covid-19 pandemic, adding: 'These two lads are not going to sit in their pyjamas working from home, they've got to get out there and do some business.' 

Last month Lord Sugar spoke about how he has learned nothing, only excuses, from his contestants on The Apprentice.

Meanwhile, Lord Sugar acknowledged that television advertising has 'suffered badly', amid reports the sector has faced tougher conditions in recent years because of rising costs and shifting consumer viewing habits.

'TV companies have cut back tremendously, and the reason for that is because the power of television advertising is not as big as it was,' he told PA. 

'It is now digital marketing, digital advertising and social media that are actually pulling in sales.' 

Mr D'Arcy said: 'The digital marketing landscape is ever-changing, which we see as a huge opportunity.' 

He added: 'The last thing someone should be doing is cutting back on marketing spend.' 

Mr Baron said the agency will have 'exactly the same values' as the old Amstrad, which was widely known for making personal computers more affordable and accessible. 

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Blackpool Pleasure Beach owner says 'don't ask' as iconic ride closes - Liverpool Echo

A much loved ride at Blackpool Pleasure Beach has been closed as its owner confirmed a new attraction is coming soon.

The Grand Prix Ride has been part of the theme park for over 60 years. Those attending could jump into a model car and head down a huge spiral track, travelling underneath other famous attractions at the resort such as Avalanche.

However, as LancsLive reports, the Grand Prix ride is no more. Amanda Thompson, owner of the Pleasure Beach resort, has promised it will make way for a new ride.

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In a Facebook post, Everything Blackpool wrote: "Blackpool Pleasure Beach owner Amanda Thompson has confirmed the closure of Grand Prix to make way for a brand new attraction in the future.

"The ride has operated on the park since 1960 and was originally called the Turnpike. The cars were petrol powered till the end of the 2002 season before being modified to electric powered ones we see today."

Ms Thompson, posting on X/Twitter yesterday morning, urged for patience from fans, with discussions ongoing about what should take its place in the resort. She said: "To all Pleasure Beach fans, the Grand Prix will not operate this year as we are planning a new attraction. Don’t ask me any more questions about this, I will tell you when I have made the decision."

The Pleasure Beach opened at the weekend as it kick-started the 2024 season. Visitors were disappointed to discover that The Big One and Ice Blast were not open due to reasons "beyond the control" of the park's owners.

Ms Thompson, who is the great-granddaughter of Blackpool Pleasure Beach's founder, apologised for the rides not being ready in time for this weekend. In a separate post on X, she said: “Wishing all the Pleasure Beach team a fantastic 2024 season. Thank you for all your hard work in getting the park ready. I am so sorry the #BigOne isn’t quite ready….. that was truly beyond my control.”

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Fury as train fares hiked from TODAY despite worst service in a decade - GB News

Rail fares in England and Wales have been hiked up by nearly five per cent despite train cancellations being at the highest levels for 10 years.

Public transport campaigners have argued that passengers are being “punished” and will be “angry” at the price increase, which will cost the average commuter hundreds of pounds extra to travel.

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Figures from the Office of Rail and Road (ORR) show that 3.9 per cent of services were cancelled in the year to February 3.

This narrowly misses out on taking the top spot for the worst-performing year from 2014, where 4.1 per cent of services were suspended.

Train fares are being hiked from today despite cancellations being at their highest in a decade

Getty

Constant strikes, infrastructure failures and temperamental weather have impacted the reliability of the rail industry.

A season ticket from Brighton to London will increase by £275, rising from £5,616 to £5,891.

The Scottish Government will increase ScotRail fares by 8.7 per cent from April 1.

Chris Page, who chairs pressure group RailFuture, said: "Why are rail passengers being punished year after year with inflation-busting fare rises?

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The price increase will cost the average commuter hundreds of pounds extra to travel

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“No matter that there's a cost-of-living crisis, no matter that we're facing a climate emergency, the Government seems more determined than ever to price us off the railway and on to the roads.”

Campaign for Better Transport campaigns manager Michael Solomon Williams said: “At a time when we urgently need to encourage people to take the train, the public will rightly be angry to discover that it has just become even more expensive to do so.

“We know that people will decide to drive or fly if the train is too expensive, so this is bad news for our personal finances, the wider economy and the environment.”

Labour’s shadow transport secretary Louise Haigh said: “This fare rise will be tough for passengers to stomach given the shocking state of rail services up and down the country.

Rail minister Huw Merriman said train fares were 'well below inflation'

PA

“Since coming to power in 2010 the Tories have hiked fares by almost twice as much as wages, and now passengers are being asked to pay more for less.”

Last month, rail minister Huw Merriman said that the Government had tried to “split the balance between the UK taxpayer and the fare payer” in relation to fare rises, which he described as being “well below inflation”.

ORR figures show £4.4billion of funding was given by the Government to train operators in Britain in the year to the end of March 2023.

Last July's Retail Prices Index measure of inflation, which is traditionally used to determine annual fare rises, was nine per cent.

The Consumer Prices Index, which is normally used to measure inflation, was 6.8 per cent in July 2023 but dropped to 4 per cent in January.

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Train fares increase again – find out how much your ticket will cost now - The Independent

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Train fares are due to rise by nearly five per cent, despite rail cancellations currenly among the highest levels for 10 years.

In the year leading up to 3 February, figures from the Office of Rail and Road (ORR) show that the equivalent of 3.9 per cent of services in England and Wales were cancelled.

This only narrowly fails to beat the worst performance of 4.1 per cent in records which date back to 2014.

Rail fares in England and Wales rise by nearly 5% on Sunday despite train cancellations being among the highest level in 10 years (Kirsty O’Connor/PA)

(PA Archive)

Public transport campaigners claimed passengers are being “punished” and will be “angry” at Sunday’s price hikes given the current cost of living crisis.

Persistent strikes, infrastructure failures and faults and an increase in severe weather have all impacted the reliability of services.

The increase in fares could add £190 to an annual season ticket from Woking to London, taking the cost from £3,880 to £4,070.

It could also see flexi season tickets for travel between Liverpool and Manchester on two days per week over a year rising by £92.60 from £1,890 to £1,982.60.

How much will your ticket increase?

Here are 10 examples of potential rail fare rises across England

Figures are based on an increase of 4.9%.

The table compares the cost of season tickets using any valid route bought before and after the rise.

It does not include the price paid if within-London travelcards are purchased for Tube and bus journeys in the capital.

– Annual season tickets:

ROUTE – CURRENT PRICE – AFTER 4.9% RISE – INCREASE

Woking to London – £3,880 – £4,070 – £190

Gloucester to Birmingham – £4,908 – £5,148 – £240

Brighton to London – £5,616 – £5,891 – £275

Whitehaven to Carlisle – £2,284 – £2,396 – £112

York to Leeds – £2,764 – £2,899 – £135

– Flexi tickets for travel two days per week over a year:

ROUTE – PREVIOUS PRICE – AFTER 4.9% RISE – INCREASE

Welwyn Garden City to London – £1,851.60 – £1,942.30 – £90.70

Liverpool to Manchester – £1,890 – £1,982.60 – £92.60

Cambridge to London – £4,208.40 – £4,414.60 – £336.70

Ipswich to Peterborough – £4,510.80 – £4,731.80 – £221

Bath Spa to Bristol Temple Meads – £960 – £1,007 – £47

Chris Page, who chairs pressure group Railfuture, said: “Why are rail passengers being punished year after year with inflation-busting fare rises?

“No matter that there’s a cost of living crisis, no matter that we’re facing a climate emergency, the government seems more determined than ever to price us off the railway and on to the roads.”

Labour’s shadow transport secretary Louise Haigh said: “This fare rise will be tough for passengers to stomach given the shocking state of rail services up and down the country.

“Since coming to power in 2010 the Tories have hiked fares by almost twice as much as wages, and now passengers are being asked to pay more for less.”

Campaigners say passengers are being ‘punished’

Campaign for Better Transport campaigns manager Michael Solomon Williams said: “At a time when we urgently need to encourage people to take the train, the public will rightly be angry to discover that it has just become even more expensive to do so.

“We know that people will decide to drive or fly if the train is too expensive, so this is bad news for our personal finances, the wider economy and the environment.”

Rail minister Huw Merriman said last month that the government had attempted to “split the balance between the UK taxpayer and the fare payer” in relation to fare rises, which he described as being “well below inflation”.

ORR figures show the Westminster administration provided £4.4bn of funding to train operators in Britain in the year to the end of March 2023.

Last July’s retail price index measure of inflation, which is traditionally used to determine annual fare rises, was 9 per cent.

The consumer prices index, which is a more commonly used inflation figure, was 6.8 per cent in July 2023 but fell to 4 per cent in January. Westminster and the Welsh government set the cap for rises in regulated fares at 4.9 per cent.

These include season tickets on most commuter journeys, some off-peak return tickets on long-distance routes and flexible tickets for travel around major cities.

Train operators set unregulated fares such as Advance singles, although their decisions are heavily influenced by the government due to contracts introduced because of the coronavirus pandemic.

Rises in these fares are expected to be similar to those for regulated fares. The Scottish government will increase ScotRail fares by 8.7 per cent from 1 April.

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Drivers 'scared of change', says electric car maker snubbed by Volvo - The Telegraph

The chief executive of European electric car maker Polestar has claimed drivers “scared of change” are to blame for the slowing uptake of electric vehicles (EVs).

Asked why consumer adoption of EVs appeared to be flattering, Thomas Ingenlath, chief executive of the company dubbed “Europe’s Tesla”, said: “To tell you the truth, I think that [it is about] being open for innovation and the future technology.

“I see far too many people hesitating with that and being scared of change. That is just not a good recipe for the future.”

However, Mr Ingenlath claimed that rivals slowing their electrification plans were falling into a “trap”.

He said that manufacturers pumping the breaks on EV rollout plans will be left at a disadvantage given the complexities of launching new vehicles.

Mr Ingenlath told The Telegraph: “There’s an incredible threat and danger if you don’t embrace future innovation and believe in that technology – the electric drivetrains, the innovation in battery, the innovation in modern electronics and software.

“If you don’t participate in that and think you can wait, and customers are ready for it, it’s an incredible trap.”

Manufacturers including Mercedes, Ford and Aston Martin have warned that demand for electric models is not as strong as previously expected, with consumers still wary of high prices and unevenly spread charging infrastructure. 

Many companies have either delayed or reduced their EV ambitions as a result, despite the fact government deadlines for axing combustion engines remain in both the UK and EU.

Mr Ingenlath said: “Of course, as a pure electric company, we are convinced electric propulsion is a technology which is superior.

“It’s not a question of being electric or being combustion engine: this is a question of who has that convincing, great product. I definitely think that is worth the battle and we will win this.”

He was speaking after his company secured a $1bn lifeline from banks after Volvo, Polestar’s former parent company, announced it was withdrawing financial support. It followed a succession of missed targets by the brand and a share price collapse.

Polestar originated as a racing team in the Scandinavian Touring Car Championship that used Volvo cars.

The brand name was later purchased by Volvo and then spun out to become a standalone electric marque in 2017, through a joint venture owned by Volvo and its Chinese parent, Geely.

Mr Ingenlath, a German who previously served as Volvo’s design chief, has been chief executive since then.

'Europe's Tesla' has attracted high-profile attention from the likes of Leonardo DiCaprio Credit: Dimitrios Kambouris/Getty

Some have called the Scandi EV company Europe’s answer to Tesla, no doubt partly because of Polestar’s sleek and futuristic-looking designs. Backers include Hollywood star Leonardo DiCaprio.

Polestar listed on the New York stock exchange in 2022 valued at about £11.5bn. However, since then the company has lost 60pc of its value and it has failed to hit key delivery targets.

The business lost $1bn and $1.3bn respectively in 2021 and 2022 and was $735m in the red following the first nine months of 2023, according to its latest numbers.

Before the stock market listing, Polestar promised annual deliveries of at least 155,000 vehicles by 2025. But the company downgraded its forecast for 2023 to just 60,000.

At the same time, the EV market is today suffering from something of a funk.

The UK consumer market actually shrank slightly last year, while on Friday new data from the Society of Motor Manufacturers and Traders (SMMT) showed that half of drivers now intend to wait until at least 2030 to go electric, underlining a growing sense of crisis.

The $1bn lending lifeline is therefore a crucial crutch for Polestar as it seeks to break even by 2025. However, the company has said it needs to raise $1.3bn overall to reach that milestone – meaning it will have to find another $350m at some point before then.

Polestar last week also announced a restructuring of its shareholding that will hand Chinese car giant Geely a greater share of the business. The company is already a significant shareholder and Polestar’s cars are actually made at Geely’s factories in China and then exported to Europe and the US.

That could cause problems in the coming years, amid a looming crackdown on Chinese-made EVs in both the US and Europe.

The European Union is investigating alleged subsidies handed to Chinese companies, while US President Joe Biden has warned that vehicles assembled in China pose a “national security risk” to American citizens. British authorities are also examining whether to launch an investigation.

Polestar posted annual losses of $1bn and $1.3bn in 2021 and 2022 Credit: Stefan Isaksson

Polestar has plans to get further production lines going in the US and South Korea this year and 2025 respectively, which may help it avoid any crackdown. 

While some might take the Tesla comparison as a compliment, Mr Ingenlath seemed to bristle at it. The pair differ in “the market that we are going for”, he explained.

Elon Musk’s Tesla is targeting mainstream, middle-class consumers with its Model 3 sedan and Model Y SUV, which start at about £40,000 and £45,000 respectively. Polestar’s three current cars are aimed at a slightly wealthier clientele, ranging in price from £45,000 to £80,000.

Mr Ingenlath said: “We are not in the game to do the mass market and compete with the traditional [car makers] in that field.”

As a brand, Polestar has staked its reputation on design, quality and sustainability, epitomised by a “moonshot” plan to develop a truly zero-emissions vehicle – where even the supply chain will be carbon-free – by 2030.

This focus on more wealthy drivers is helping Polestar weather a downturn in broader EV sales, Mr Ingenlath argued.

“Our brand is going into the segment where premium performance cars with an incredibly good design, incredibly good connectivity, with incredibly good handling on the road attract people who love driving cars and are open to innovation and the greatest modern product.

“And that I think is what is convincing customers, and will be convincing to customers in the future.”

In another departure from Tesla, Polestar’s first car was also not a pure electric. The Polestar 1, which is now out of production, was a plug-in hybrid using technology developed largely by Volvo.

Since then the company has launched the all-electric Polestar 2, as well as the Polestar 3 SUV and the Polestar 4 SUV coupe, which went on sale in Europe in late January. A fifth car, the Polestar 5 grand tourer, is scheduled to launch later this year.

On the question of customer demand, Mr Ingenlath added: “I cannot confirm that we don’t see demand for Polestar 3 or Polestar 4, when I see how much people are waiting for us to have these cars now in production.”

Mr Ingenlath argued that the retreat of other, less committed brands from the electric space will ultimately benefit his company.

He said: “It’s an incredible opportunity for Polestar that, in that sector of premium performance cars, there is indeed not that much competition coming.

“I definitely think that is where you have customers who very much embrace the innovation and the greatness of the electric drivetrain, especially in this very high-end premium, exclusive sector.”

Perhaps the chief executive will be proved right about his rivals. Alternatively, it may be Polestar that is now driving into a trap.

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Pension fund changes announced as Jeremy Hunt 'backs British business' - GB News

Pension savers are set to benefit from new reforms being introduced by the Government ahead of next week’s Budget.

Chancellor Jeremy Hunt has announced an overhaul of the pension fund systems in a bid to bolster British business and returns for those with retirement savings.

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Among the changes are requirements for Defined Contribution (DC) pension funds to publicly disclose how much they invest in the UK.

According to the Treasury, this will allow employers and savers to compare pension schemes and make a better informed choice.

Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.

New pension fund reforms are expected to benefit savers

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As part of the Value for Money (VFM) pension fund reforms, there will be greater consolidation within the DC pension market and improved outcomes for savers.

Under the Government’s auto enrolment rollout, the amount of investment entering UK pension funds has jumped £90billion in 2012 to around £116billion in 2022.

Despite this, existing disclosure requirements for DC pension funds are not consistent across the market and do not demand a breakdown of UK investments.

As such, it is sometimes difficult for policymakers and savers to understand where this money is being invested.

With these reforms, DC pension funds will have to disclose investment levels in British businesses by 2027, including their costs and net investment returns.

Furthermore, pension funds will need to publicly compare their performance data against rival schemes, including at least two schemes managing at least £10billion in assets.

Any pension funds which are performing poorly for savers will not be permitted to take on new business from employers.

On top of this, The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) are set to be awarded with new intervention powers.

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Mr Hunt said: “We have already started on a path to drive growth, unlock capital for our most promising companies and improve outcomes for savers – and these new rules mean employers and savers can see how their money is invested and how the returns compare to other schemes.

“British pension funds appear to contribute less to the UK economy than international counterparts do as they invest less in our domestic businesses. These requirements will help focus minds on how to improve overall returns and outcomes for savers.”

Mel Stride MP, Secretary of State for Work and Pensions, added: “The incredible success of automatic enrolment has opened up a huge opportunity to grow the economy, boost British businesses and fuel our futures. It has helped us transform the pensions landscape over the last decade.

“And our Value for Money framework will take this one step further, focusing pension managers on their number one priority – securing the best possible returns for savers – as well as providing a boost to the wider economy.”

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