## Labour’s price freeze will make our railways worse
It seems the Government plans to freeze rail fares for the upcoming year. This policy appears unusual. Economists generally argue that price freezes can negatively affect services by reducing the incentives for investment and improvement.
The proposed freeze might hinder the rail industry’s ability to modernize and enhance services. Price controls typically lead to less revenue, which can undermine the maintenance and upgrading of infrastructure and rolling stock.
> "Freezing prices may seem appealing to passengers but can ultimately degrade service quality," experts warn.
Moreover, the policy risks increasing congestion and inefficiency because it ignores the economic principle that prices should reflect demand and operational costs.
A sustainable rail system requires balanced pricing that supports investment, innovation, and capacity expansion. Artificially limiting fare growth could, therefore, make railways worse in the long term.
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Freezing rail fares, despite seeming consumer-friendly, risks deteriorating service quality by reducing necessary investment and ignoring economic realities.
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CapX — 2025-11-29