Rail fares may rise by up to 8% next year if the Department for Transport (DfT) is hit hard in the government's spending review, sources have said.

While many rail fare rises are currently capped at inflation plus 1%, this could rise to 2% or 3% if the department faces tough cuts.

Increases are based on July's RPI measure, expected to be 5%, which could mean increases of up to 8%.

No decision has been made on changing the "RPI plus 1%" formula.

A 6.1% rise for a commuter from Brighton to London would mean they would have to pay £216 more than the £3,556 they are currently charged each year, the Daily Telegraph reported.

Transport Secretary Philip Hammond said: "It would normally be the case that next year's regulated train fares are calculated using July's inflation figure, plus 1%.