The announcement comes on the same day thousands of passengers face disruption as one of the longest rail strikes in history begins on South Western Railway lines.
Jeremy Corbyn has insisted his spending pledges are necessary to right a decade of austerity as he pledged to slash regulated rail fares in England by a third from next month.
Labour claimed the plans mark the "biggest ever reduction" in rail fares.
The opposition party also unveiled plans to scrap child fares altogether, making it free for those aged 16 and under.
It said the move, which will apply to regulated fares that make up nearly half of all tickets sold from January, would give relief to millions of rail commuters from years of price rises.
Labour said in a press release it would also introduce a nationwide Oyster-style and contactless ticketing system.
Labour say these changes would cost about £1.5bn per year.
Shadow Transport Secretary Andy McDonald meanwhile hit out at Britain's "complex, exploitative and expensive" ticketing system, vowing to axe "bewildering and outdated fares" and help part-time workers.
Leader Jeremy Corbyn said: "Travelling by train is my favourite way of getting around the country but for too long a fragmented and privatised rail system has ripped-off passengers".
Labour has also pledged to deliver a simple, London-style ticketing system across the nation - with "islands" within which zonal rail fares will apply across all modes of public transport.
Responding to the announcement, Transport Secretary Grant Shapps said: "This is another desperate attempt from Labour to distract from their inability and unwillingness to be straight with people on where they stand on Brexit, and the fact they would raise taxes on low and middle income workers across the country".
The Conservatives have their own plans to improve transport links as part of their £3.6 million Towns Fund, with additional investment of £500 million to reverse longstanding cuts to the railway network alongside further funding to local authorities to improve bus and rail services.
He added: "You simply can not trust Corbyn to deliver what he claims". "His ideological plans would wreck our economy, cost people their livelihoods and with the help of Nicola Sturgeon would waste the whole of next year on two more chaotic referendums".
He said: "Rail companies have been calling for some time for changes in regulation to enable an easier to use, better value range of fares but it's a red herring to suggest that reforming fares needs a change of ownership".
Politicians and passenger groups have called for the CPI measure to be used for increases to regulated fares.
"This is rail public ownership that delivers real change to benefit everyone".