A HIKE in rail fares likely under Government reforms will have devastating consequences for the North East economy, an MP last night warned.

Rail passengers are set to face higher fares under radical reforms which would see ticket offices closed and reductions in on-board staff, according to leaked documents.

Train operators are proposing to raise prices and cut staff after a Government review of the industry said costs are a “major problem” and need to be cut by 35% to match European counterparts.

Newcastle Central MP Chi Onwurah has now written to rail operator East Coast and the Minister for Transport, explaining that the proposals will harm the region’s economy if implemented.

The Labour MP told The Journal: “At a time when there is such a squeeze on the family budget, huge increases in train fares are yet another blow, and proof the Government is cutting too far and too fast. But it is also about economic competitiveness. As a region, we need cost- effective rail travel if we are to compete with other regions, like the North West, for jobs and visitors.

“I’ve already written to East Coast Rail and the Minister for Transport about East Coast’s pricing policy because I have had complaints from constituents and I believe it disadvantages us.

“Further fragmentation of the railways, reduced subsidy and regulation are not going to improve the situation.

“The Government seems obsessed with maximising the short-term return to the Exchequer instead of thinking of long- term economic growth, or the impact on the environment.”