Tube and bus fares in the capital will rise above inflation from next year as Mayor Boris Johnson looks to plug an £84m "financial hole" in London’s transport.

Overall, fares will see an increase of six per cent next year with the Mayor warning that there would be some "tough choices" about some transport projects in the capital.

On the buses, a single Oyster Pay as You Go trip will cost £1 from the New Year while a one day bus and tram pass will rise from £3 to £3.30.

While the £4 adult cash fare in Zone One of the tube will be frozen, the price of tickets in other zones will go up from £3 to £3.20.

Some fares will be cut, including a new off-peak fare aimed at encouraging Londoners and visitors to travel after 09:30. In some cases, a journey from zone 6 to central London will be £1.60 cheaper under the new fare.

The Mayor said there would be a new half price travel scheme for people on income support, while the elderly and war veterans would still receive support.

Mr Johnson said the previous Mayor's fares policy had been "unsustainable", removing more than £80m from TfL's funds this year alone.

"This fares package is designed to be fair to all Londoners, commuters and visitors. Some of us will pay a little more but I have ensured fares will remain affordable, especially for people who rely on public transport most, including the elderly, disabled veterans and those on lower incomes.

"I have been left to tackle the unfunded legacy of Livingstone's largesse. Put simply, the previous Mayor's cynical and irresponsible pre-election fares freeze and support for unfunded transport schemes is unsustainable, and has produced a gap that has to be plugged.

I'm determined to deliver value for money for London's farepayers and taxpayers and that will mean some tough choices.

"We're investing billions to improve transport in London, prepare for 2012 and deliver Crossrail. This is a fares package that will sustain the investment needed to deliver the extra capacity and reliability that is vital for London."