Rail fares may rise by up to 8% next year if the Department for Transport as a result of government's spending review.

Under the current system many rail fare rises are capped at inflation plus 1%, but this could rise to 2% or 3% if the department faces tough cuts.

The cost of the risess are based on July's RPI figure which is predicted to be about 5%, leading to increases of up to 8%.

Although no decision has been made on changing the "RPI plus 1%" formula, a 6.1% rise for a commuter from Brighton to London would mean they would have to pay £216 more than the £3,556 they are currently charged each year according to the Daily Telegraph.

Philip Hammond, Transport Secretary said: "It would normally be the case that next year's regulated train fares are calculated using July's inflation figure, plus 1%.
"But this is not a normal year. The scale of the financial crisis that we have inherited means that we will have to make some tough decisions in the spending review which concludes this autumn.

"I am therefore not yet in a position to determine next year's fare increase.

"It would be irresponsible, at a time when investment in the railway is under pressure, to rule anything out until the spending review is concluded."

A spokesman for the Association of Train Operating Companies said predictions of rail fare rises were "just speculation".

"The government is currently reviewing its approach to rail fares and a final decision is unlikely to be made until the spending review in the autumn," he said.

"The average price paid for a single journey comes in at under £5 and we will have to wait and see how this changes."