Transport for LondonNew fares sustain vital investment
These include the collapse of Metronet, a recession-linked fall in Tube ridership, and the former administration's fares policy.
Announcing his plans, the Mayor took action to protect the free and concessionary fares for London's older and young people, and those on low incomes.
Forty per cent of bus passengers will continue to travel free or at a substantial concessionary rate.
Additionally, the Freedom Pass will remain valid for travel 24 hours a day on all TfL services.
The new package for 2010 will see overall bus fares increase by 12.7 per cent and Tube fares rise by 3.9 per cent.
The Mayor said: 'Nobody wants to make an announcement like this, especially when Londoners are feeling the effects of the recession.
'It is not a decision that I have taken lightly.
'Indeed, I have been persuaded of the need for fare rises only after ensuring that every efficiency possible, at least £5billion in total, is being made at TfL.
'The crucial thing is that we safeguard the investment in our city's future and that's why I'm asking Londoners to accept this difficult decision. I know that Londoners value hugely the expansion of, and improvements to, the buses and Tube and the free or concessionary fares available for many passengers. I share that view.
'Yet it is now clear to everyone that the era of ever-rising funding from the taxpayer is now firmly at an end. I will need to take this into account when it comes to setting fares in future years.
'But I am determined to ensure that fares in London will continue to deliver excellent value for money, particularly when compared to the fares charged in other UK cities.'
The new fares package will mean TfL can continue to deliver the network improvements that Londoners deserve, including Crossrail, the upgrade of eight Tube lines, new trains, the cycling revolution, and a host of other improvements ahead of the 2012 Games.
New fares package: Key points
Oyster pay as you go bus fares will rise from £1 to £1.20
- A seven-day bus pass will increase from £13.80 to £16.60
- On the Tube, the Zone 1 Oyster pay as you go fare will rise from £1.60 to £1.80
- Most other Oyster pay as you go fares on the Tube will rise by 20p, with larger increases in some longer distance peak fares
- The majority of Travelcard prices will be frozen
- By using Oyster, Londoners will continue to receive best value single journey and daily prices across the TfL network, including the daily price cap
- Plans to ensure Oyster, including pay as you go, can be used on all National Rail services within Greater London are progressing
