London Evening Standard/London
Tube fares could go up by 38% to counteract Ken Livingstone’s proposed price cut and freeze, according to a memo leaked yesterday.An internal Transport for London (TfL) e-mail claimed the Labour candidate’s plan to reduce Underground fares by 7% would leave the organisation “running out of cash” within three years.It is also claimed that fares across the network would have to increase dramatically in 2015 to cope with the potential billion-pound loss caused by the policy.Livingstone has pledged to cut fares on the Tube by 7% this year if elected on May 3. In 2013 fares would be frozen and thereafter they would only increase by the rate of inflation.Livingstone yesterday called the claims “a fraud” and said a plan would be in place to put his fares cut into action.Conservative Mayor Boris Johnson says there is no spare cash to fund the cut. He asked senior TfL officials to calculate how much fares would have to increase if Livingstone’s plan were introduced.The response shows that officials have suggested fares being raised by as much as 38%. Johnson said this showed Livingstone’s fares pledge would leave transport in “financial chaos”.Independent expert Tony Travers yesterday said the money to fund Livingstone’s fare cut would be more likely found through the scrapping — or postponement — of capital projects. The ticket increases were used to show the size of the loss.Travers said that although 38% represents the full financial impact of a cut, it is unlikely that fares would ever go up by that amount. The e-mail was sent by Neil Perrins, a senior member of TfL’s financial team.Livingstone has repeatedly said he will not reduce investment in the Tube if he cuts fares.