FARES on some Arriva rail and bus services could be capped as a result of provisional findings by the Competition and Markets Authority (CMA).

The CMA investigated the Sunderland-based company’s ownership of certain transport routes after it was awarded the Northern rail franchise.

It found that there had been a “substantial” lessening of competition on four rail routes – Leeds to Sheffield, Wakefield to Sheffield, Chester to Manchester and Chester to Stockport.

Concern was also expressed over several bus routes operated by Arriva, including three in Redcar and one in Darlington.

Inquiry chairman Phil Evans said: “We assessed the franchise award thoroughly and have provisionally found that it could lead to higher fares for passengers on some local rail and bus services.”

The CMA suggested that fare caps would mitigate the situation, but said it would assess all of the evidence before making a final decision.

Its final report is expected in early November.

Chris Burchell, managing director of Arriva UK Trains, said: “The CMA recognised Arriva’s commitment to bringing a range of benefits to passengers through the Northern rail franchise.

“We have maintained throughout this process that the operation of the Northern franchise by Arriva alongside our existing bus and rail businesses does not create any competition concerns and so we are disappointed that the CMA has identified a small number of these in a handful of local areas.

“This remains an on-going process and Arriva is committed to continuing to engage constructively with the CMA to resolve their concerns and demonstrate that the award of the Northern rail franchise doesn’t lessen competition.”