As UK train fares jump by an average of 2.7 per cent, German long-distance train ticket prices have been slashed by 10 per cent in a bid to entice passengers to use the railways.

The new fares will apply to inter-city journeys of more than 50km in Germany, national operator Deutsche Bahn said.

The fare cut is thanks to a recent VAT cut, which Deutsche Bahn is passing directly onto customers. Last month, VAT on long-distance rail travel in Germany was cut to 7 per cent from 19 per cent.

Train journeys under 50km are already subject to just 7 per cent VAT.

The national train operator predicts that an extra five million passengers a year will use the train thanks to the lower fares.

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Deutsche Bahn has also reduced charges for other train services, including fees for taking bikes on board, the BahnCard100 railcard and seat reservations.

“We are delighted for our millions of long-distance customers in Germany that we can now offer them even more attractive ticket prices on 1 January in the most climate-friendly means of transport,” said Deutsche Bahn CEO Dr Richard Lutz last month when the VAT cut was announced.

“This is a strong start for the new decade, which is so important in terms of climate policy.”