Any significant increase in next year’s rail fares is likely to restrict employment and delay business growth, according to specialist IT, technical and engineering recruitment firm IntaPeople.
It has been speculated that UK rail fares may be raised by up to 8% if the Department for Transport (DfT) is hit hard by the Government’s spending review this autumn.
Transport Secretary Philip Hammond has refused to rule out a rise above the standard level, which is calculated using July’s rate of inflation plus an additional 1%.
IntaPeople has said that an increase in the cost of travel could affect business growth and ultimately hinder the UK’s economic recovery.
Phil Handley, operations director at IntaPeople, commented:
“We appreciate that many of the Government’s recent decisions, such as the reversal of an increase in National Insurance, have been made with businesses in mind. The issue of rail fare rises should be treated in a similar manner.
“A large increase would be a real blow for businesses all over country. Companies would not only incur extra costs when workers are out attending meetings but many may also be expected to absorb the additional expense suffered by employees who rely on the train to get to work each day.
“It is highly possible that this would prompt firms to downgrade or freeze their recruitment plans, which can only be a bad thing for the economic recovery.”
