FARES on the tube and the capital’s buses could increase above the rate of inflation to fill a funding gap, according to the London Assembly.

A new report from the assembly claims there could be shortfall of some £1.7m at Transport for London (TfL) by 2018 as a result of the recession.

It says the shortfall will have to be met by “increasing fares by much more than inflation in the medium to long term”.

It also warns TfL may have to reduce services, make further efficiency savings on top of the £2.4 billion already mooted, as well as cancel or postpone planned improvements or expansions.

Chairman of the London Assembly’s budget and performance committee, Assembly Member John Biggs, said: “Depending on the length and severity of the recession, the next few years will be very challenging for the Mayor and Transport for London.

"Finding ways to plug the gap that do not impact on services or place a large financial burden on fare payers will be difficult.

“The Mayor is not required to consult with Londoners about the fares, but we feel it is essential that he does so."

He added: "Londoners need to know what the options are, especially since they will have to bear the burden of any increase.”

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