Autumn Statement: Transport cost rises to ease

Rises in the cost of train fares will not be as not be as high as predicted in the New Year, Chancellor George Osborne confirmed in the Autumn Statement today.

An increase in transport costs in the UK will be capped at the retail prices index (RPI) of inflation plus 1%.

The previously planned rise of RPI plus 3% was "too much", said Osborne. Fares will now go up by 6.2%, which is 1% above inflation, from 1 January 2012.

This will also apply to Transport for London fares, which cover transport links in the capital.

There is also some good news for motorists as a planned fuel duty increase of 3p in January has also been delayed to 1 August.

Karen Barrett, spokesperson for, says: "The freeze on January's planned fuel duty rise will be a small relief to consumers and those motorists who rely heavily on their car to earn their living.

"The chancellor's decision to scrap the duty rise may not be a dramatic change, but it will go some way to helping the burden on people's everyday living costs."

Research from this year shows that fuel duty is the number one tax consumers would like to see abolished, with 20% of people stating this was the tax that they wanted to be rid of the most.