A RAIL passenger group said last night it was dismayed at the announcement of "inflation-busting" train fares to come into force next month.

The Rail Passengers' Council said it was a disappointing early Christmas present for travellers after it was revealed fares will rise in January by 3.9 per cent - nearly twice the rate of inflation.

GNER has the highest hike in prices throughout the country for unregulated fares, such as cheap day returns and long-distance open tickets, with an average increase of 8.8 per cent.

Anthony Smith, chief executive of the RPC, said: "The rail industry is going to have to work hard to demonstrate that these rises represent value for money.

"Good value rail travel can be had - if you can get hold of the tickets in advance.

"But many walk-on fares are now at eye-watering levels."

A survey by the council revealed only 41 per cent of rail passengers are satisfied that they receive value for money

It said it intended to carry out extensive research next year to gauge passengers' views on rail fare prices.

GNER, which links the North-East with London, will see a rise of 3.9 per cent for regulated fares, such as season tickets and saver tickets.

A spokesman said the rise of 8.8 per cent for long-distance fares was due to a change to its business saver ticket, which was being repositioned in its pricing range. The overall average rise was 7.6 per cent for all fares.

He said: "This average is affected by a one-off change to one type of ticket which is being repositioned to create a simpler and more easily understood range of fares.

"GNER operates on one of the most competitive travel routes in Britain, where travellers have a clear choice between rail, car, coach, or air.

"We believe we offer excellent value and quality of service. We have multi-million pounds investment in trains and stations, including Durham, Darlington and Newcastle.

"We are not subsidised by the taxpayer, but we need to generate income to re-invest and to improve standards of service."

GNER said passengers would still be able to purchase cheap day advance tickets from Darlington to London for £20.

The cost of a savers ticket for the same journey will rise to £86, an increase of £2 and a cheap day return from Darlington to Newcastle will increase from £7.50 to £7.70.

The Association of Train Operating Companies, which announced the increases, said revenue from fares was needed for rail improvements.