Prime Minister Andy Burnham has announced that single bus fares across England will be capped at £2 from the start of next year, lowering the current nationwide cap of £3 that was set to remain until March 2027. The move reverses a previous increase introduced in 2024 under former Prime Minister Keir Starmer and then-Chancellor Rachel Reeves, when the earlier £2 cap was removed due to affordability concerns.
Details of the Fare Cap
The £2 cap will apply throughout 2027 and is designed to make bus travel more affordable for millions of people. Some areas, including London and Greater Manchester, already offer cheaper fares, but the new cap will standardise the maximum fare across the country. Burnham previously introduced a £2 cap as mayor of Greater Manchester.
Announcing the policy, Burnham said: “Good, affordable transport links are an essential. No one should be priced out of those and left behind. But for too long, people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now - a £2 cap on bus fares for millions across the country. Lower fares will help people get to where they need to - giving them breathing space to help with the cost of living.”
Funding and Financial Impact
The measure is backed by £454 million in funding, which includes support for devolved governments to introduce similar schemes. Approximately £400 million will come from switching investment in international climate finance to loans, with the remainder drawn from savings within the Department for Energy Security and Net Zero. The total cost is expected to exceed £500 million, with the balance funded through money already allocated to buses by the Department for Transport.
Chancellor John Healey said the policy would benefit “millions of people” and insisted it would not place additional pressure on taxpayers. “This action to ease the cost of living is funded by savings made elsewhere, so there’s no burden to British taxpayers, just pounds going back into their pockets,” he said. Transport Secretary Heidi Alexander added that the change would make “everyday journeys easier and cheaper”.
Political Context and Appointments
Alongside the announcement, Burnham is continuing to shape his ministerial team following his arrival in Downing Street, reports PA. Scottish Labour leader Anas Sarwar is expected to receive a peerage and take up a role in the Department for Business, Innovation, Science and Trade. Sarwar, who has led Scottish Labour since 2021, had previously called for Starmer to step down earlier this year and has since praised Burnham’s leadership, describing it as a “bold Labour vision”.
Downing Street also confirmed a number of appointments and reshuffles. Dan Jarvis returns to his role as security minister after briefly serving as defence secretary, while James Murray has been appointed Financial Secretary to the Treasury and Paymaster General. Anna Turley has moved from Labour Party chair to a Home Office ministerial role, while Florence Eshalomi becomes a housing minister and Andy Slaughter has been appointed Solicitor General. Seventeen ministers have also been reappointed to their existing posts, including Sarah Sackman as justice minister and Luke Pollard as defence minister.
