Tube fares should be increased by almost 5% next year, the Government has told Sadiq Khan.

A letter sent to the London Mayor by Transport Secretary Louise Haigh after this week’s Budget suggests a fare hike is a condition of Transport for London’s (TfL) funding deal.

The latest funding settlement allocated £485 million for TfL projects over the next financial year.

But the Government has told Sadiq Khan that it expects that “TfL rail fares rise in line with national rail fares this year”.

National rail fares are due to increase by an inflation-busting 4.6% next March, but City Hall has said no final decision on Tube and bus fares in the capital has been made yet.

Earlier this year, Sadiq Khan froze TfL fares until March 2025, meaning rail and bus fares in the capital have only increased in three of the past eight years.

It is likely that any fare rise next year would cover the Tube, Elizabeth line and London Overground.

In her letter, Ms Haigh added that the Government expects the Mayor to “consider the full range of revenue raising powers at your disposal as part of TfL’s business planning”.

The Government's assessment of TfL funding needs next spring "will be conducted against a baseline scenario where TfL rail fares rise in line with national rail fares this year", she said.

A spokesperson for the Mayor said: "Once a final decision on the 2025 fares package has been made, this will be published as per usual.”

The Department for Transport has been approached for a response.