RAIL passengers will have to dig deep in the New Year after GNER announced it was to increase fares by DOUBLE the rate of inflation.

Regulated and unregulated fares on the York-based operation are to rise by nearly six per cent on average - with business passengers the hardest hit.

The company, which is based at Station Rise, today said it operated on "one of the most competitive travel routes in Britain" and added its tickets were still cheaper than both the airlines and the car. Regulated fares, which cover season tickets and saver tickets, and unregulated fares, which include cheap day returns and some advance-purchase fares, will increase by an average of 5.9 per cent. Nationwide, regulated fares are up by 3.9 per cent and unregulated fares are up by an average of 4.6 per cent.

Overall on GNER, unregulated fares have risen 8.8 per cent, but the operator said that figure was distorted by a restructuring of its business saver ticket, which is to increase from £84.50 to £108.

GNER said the business saver ticket will "remain a competitive option", which offered many advantages on a standard open ticket. The company said its cheapest discounted tickets, such as the £19 offer to London, would be unchanged by the increases - which come into effect on January 2.

For passengers looking to travel to London on a saver return basis - one of the more usual ways of travelling - the price will increase from £69.30 to £72.

GNER spokesman John Gelson said: "GNER operates on one of the most competitive travel routes in Britain, where travellers have a clear choice between rail, car, coach or car.

"Our fares are cheaper than the airlines and on a pence-per-mile basis, travelling with GNER is at least four times cheaper than going by car.

"We believe we offer excellent value, given our attractive range of fares and the quality of our service. We have invested in our stations, including York, which has benefited from a new state-of-the-art travel centre, a rebuilt subway linking the platforms, new customer lounges and information screens.

"GNER is not subsidised by taxpayers and is committed to spending a further £125 million on further improvements to both stations and trains for passengers."

Adam Sinclair, chairman of York Chamber of Trade, said: "I think the country needs to be very careful about the costs it is imposing on business right across the board and, coming on top of tax liabilities, national insurance and pension liabilities, this is another knock for business."

Rail Passengers Council chief executive Anthony Smith said: "These inflation-busting price hikes are a disappointing early Christmas present for passengers.

"The rail industry is going to have to work hard to demonstrate that these rises represent value for money.

"Good value rail travel can be had - if you can get hold of the tickets in advance. But many walk-on fares are now at eye-watering levels."

Updated: 08:50 Friday, December 09, 2005