The bus fare cap in England will rise from £2 to £3 at the end of this year, Keir Starmer has said, as Rachel Reeves prepares to raid transport funding in this week’s budget.
Andy Burnham has taken aim at Labour’s announcement (Image: Getty)
Greater Manchester’s Labour mayor Andy Burnham has confirmed that the city will keep its £2 limit on bus fare despite the Prime Minister’s plans to raise the cap.
The £2 fare cap will be replaced by a £3 cap until the end of 2025.
Single bus fares in England have been capped at £2 per journey (or £1.75 in London) for most routes since January 2023.
But Mr Burnham said the bus fare cap for Greater Manchester residents will remain at £2 until the end of 2025.
He said: “On January 5, 2025, we will proceed with our plan to introduce a new simpler, flatter fare structure based around a £2 single fare and, on March 23 2025, a contactless London-style payment system with a daily and weekly cap setting a maximum for what people pay when travelling on our buses and trams.”
He added: “Our policy aim throughout has been to create a low-fare, high-patronage system similar to the one that has brought higher growth and productivity to London.”
Mr Burnham did add the freezing of the £2 bus fare cap is subject to a mid-year 2025 review.
The cap applies to services in England outside large cities such as London and Manchester, which have devolved powers over transport.
Sir Keir’s announcement means no bus fare will exceed £3, and routes where fares are less than £3 will only be allowed to increase by inflation in the normal way.
Local authorities and Metro Mayors can also fund their own schemes to keep fares down, as is already the case in London, West Yorkshire and Manchester.
Transport Secretary Louise Haigh said: “Buses are the engines of economic opportunity across the country.
“We know that reliable, affordable bus services are vital to keeping Britain moving. That’s why the government will cap fares at £3 for an additional year and provide over £1 billion to deliver better bus services.
“This will avoid a cliff-edge at the end of this year and keep fares affordable across the country – improving access to opportunities, particularly in towns and rural areas, while offering value for the taxpayer.
“Our bus revolution will give every community the power to take back control of their services, end the postcode lottery of services and turn the page on 4 decades of failed deregulation.”
