Prime Minister Keir Starmer announced that the cap on bus fares in England will increase from £2 to £3 at the end of 2024. The decision comes as Chancellor Rachel Reeves prepares to adjust transport funding in this week’s budget.
Funding for £2 cap set to end
Addressing an audience in Birmingham, Starmer explained that funding for the current £2 cap would expire at the end of 2024. “The Tories only funded the £2 fare cap until the end of 2024,” he said, adding that Labour will introduce a £3 cap until the end of 2025 to ensure continued affordability.
Concerns over higher fares
Despite lobbying from Labour’s mayors to maintain the £2 cap, Starmer defended the change, calling it a necessary step to stabilise public finances after years under Conservative rule. He believes working people understand the need for difficult choices. However, local leaders worry the fare increase may impact passenger numbers, particularly in urban areas.
Preparing the public for a tough budget
The prime minister’s speech in Birmingham served as a pre-budget message, setting expectations for the challenging financial measures ahead. Planned tax increases, including national insurance, capital gains, and inheritance tax, are likely to affect many people. Starmer acknowledged that “working people” will face some of these tough decisions but insists they are essential for restoring economic stability.
“It’s working people who bear the cost when the government fails to provide economic stability,” he said. “They’ve had enough of stagnant growth, falling living standards, and declining public services.”
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Labour’s commitment to economic stability
Starmer assured the public that this week’s budget would prioritise long-term improvements, promising “better days ahead.” He emphasised that Labour’s goal is to make difficult choices now to build a stable foundation for future growth. When asked if taxes would remain stable in future budgets, Starmer avoided firm promises, saying, “I’m going to resist the temptation to say that at no point will adjustments be made in the future.”
Additional support for jobseekers
In the run-up to the budget, Starmer announced a £240 million package aimed at helping jobseekers with long-term health conditions find employment. “The UK is the only G7 country where economic inactivity remains higher than it was before COVID,” he said. “This is not only bad for the economy but also for those missing out on opportunities.”
Starmer also hinted that fuel duty might remain frozen, responding to a query from The Sun by acknowledging its importance to readers.
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