Rail Economics: Explaining the increase in UK Rail Fares

The FT looks at the recent 3.4% increase in season ticket and off-peak rail fares, and drills down into the price increase, arguing that the train operating companies (TOCs) only earn a small margin on each £ spent on the railways.

He notes that the government has taken a decision to increase the proportion of the cost of the railways onto passengers and away from the taxpayer. There's much sense of this - but should taxpayers subsidise rail travel because of the positive welfare effects rail has on the UK economy.