Tube and bus fares frozen

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The new fares, which start in January, will also see Travelcard prices limited to an inflation-only rise of around 3.8 per cent.

The move, to be unveiled tomorrow, is a break from years of inflation-busting increases.

Cash fares are the highest in the world for a public transport system, with a Zone One journey costing £4.

Last month Mr Livingstone reduced Oyster bus fares to 90p as income was higher than expected because of soaring numbers of passengers.

The new package will continue to reward passengers who use Oyster cards. Transport for London will effectively subsidise private rail companies who normally expect above-inflation increases.

Boris Johnson, Tory candidate for Mayor, said Londoners who rely on commuter trains were being left out as Oyster pay-as-you-go cards will not be integrated with the overground rail network until 2009.

He said the fares package "goes to show once again that Ken Livingstone is a Zone One Mayor with no regard for those who live elsewhere".

Brian Cooke, of London TravelWatch, welcomed the freeze but said passengers would prefer measured rises rather than this "stop-start" approach.