Rail fares in Oxfordshire will rise by up to 9.8 per cent from January, it was announced today.

Regulated fares, which are set by the Government, including season tickets and Savers, will go up by 4.8 per cent from January 2 .

Other fares, which are set by the train operators, such as off-peak cheap day returns, will rise by an average of 5.4 per cent, but on First Great Western routes in the Thames Valley, some unregulated fares will rise by up to 9.8 per cent, with an average increase of 6.1 per cent.

An FGW spokesman said some fares will be frozen, including on the Oxford to Bicester branch. Chief operating officer Andrew Haines added: "More and more of the revenue we earn is being returned to Government year by year as national transport policy, and payment for it, changes."

Passengers using Chiltern Railways face a 5.1 per cent average increase for unregulated fares.

Arriva CrossCountry's unregulated fares will rise by an average of seven per cent, but advance purchase fares will not be increased.

The Association of Train Operating Companies said increased revenue was needed to improve rail services.

More than £800m is now being spent on new and refurbished trains.

George Muir, director general of ATOC, said: "We need the revenue from fares to pay for investment in the railway for the benefit of passengers.

"Nearly 91 per cent of trains ran on time between April and September this year, the highest punctuality level for a decade."

Anthony Smith, chief executive of rail watchdog Passenger Focus,said: "Passengers will be dismayed that fares are going up again, especially as on most routes they have no choice about which train company to use.

"Our most recent National Passenger Survey of the views of 25,000 rail passengers shows that only two in five of them think they get value for money. "