£2 bus fare cap to increase to £3 in Budget, Starmer announces

The £2 bus fare cap will be replaced by a new £3 cap until the end of 2025 at this week’s Budget, the Prime Minister has confirmed.

Sir Keir announced the change during a speech in Birmingham, in which he also defended looming tax rises and confirmed millions in funding for local services to help get people back to work.

The bus fare increase will be part of Chancellor Rachel Reeves’ first Budget on Wednesday, as the Government tries to bridge what it has called a £22 billion “black hole” in the public finances, but has already been labelled a “bus tax” by one opposition party.

The Budget will also include almost £1 billion of additional funding for local authorities and bus operators to introduce new routes, protect existing ones and make services more frequent.

Sir Keir told the audience: “On the £2 bus fare, first thing to say is the Tories only funded that until the end of 2024 and therefore that is the end of the funding in relation to a £2 capped fare.

“I do know how much this matters, particularly in rural communities where there’s heavy reliance on buses.

“And that’s why I’m able to say to you this morning that in the Budget we will announce there will be a £3 cap on bus fares to the end of 2025 because I know how important it is.”

Single bus fares in England have been capped at £2 outside London, where they are £1.75 per journey, for most routes, since January 2023