The bus fare cap in England is set to increase from £2 to £3 by the end of 2025, according to Keir Starmer. This decision comes as the funding for the £2 cap is expected to run out by the end of 2024, making it unsustainable to maintain at the current level. Despite lobbying efforts by Labour’s elected mayors to keep the cap in place, the prime minister and chancellor are moving forward with the increase.
During a speech in Birmingham, Starmer emphasized the need for such decisions to address the public finances after years of Conservative government. He acknowledged the importance of affordable bus fares, especially in rural areas, and announced that a £3 cap on bus fares will be implemented until the end of 2025. This decision will impact bus fares in major cities, with concerns raised about its effects on passenger numbers in the long term.
The upcoming budget is expected to include other measures such as rises to national insurance, capital gains tax, and inheritance tax. Despite initial promises not to raise national insurance, Starmer and his ministers have defended their plans, highlighting the necessity of tough decisions to stabilize the economy and improve public services.
One of the key concerns raised is the definition of “working people” and how they will be affected by the budget decisions. Starmer reiterated that tough choices are needed to rebuild the country’s economy and ensure better days ahead. While he refrained from guaranteeing no future tax increases, he emphasized the importance of taking decisive action now to lay a stable foundation for the future.
In addition to the changes in bus fares, the budget will also allocate £240 million to help jobseekers with long-term health conditions re-enter the workforce. Economic inactivity remains a challenge in the UK post-Covid, and the government is committed to providing support to those who are currently excluded from opportunities.
There are hints that fuel duty may be frozen again in the upcoming budget, with Starmer acknowledging the significance of this issue to the public. Overall, the government is preparing for a challenging budget that aims to address economic stability, improve employment prospects, and lay the groundwork for future growth.
