Chancellor Rachel Reeves finally confirmed an extension of the £3 cap on bus fares across England until March 2027 during her Spending Review earlier today.
Earlier this week, reports circulated that the Chancellor was planning to extend the cap beyond its previous end date of December 2025.
Earlier this afternoon, Reeves told the Commons: “I can tell the House today that I am extending the £3 bus fare cap until at least March 2027.”
The £3 cap replaced a previous £2 limit that had been in place from January 2023 until December 2024, with the increase announced during last year’s budget.
The Chancellor has committed to the bus fare cap
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Without the cap, bus fares could increase significantly across England. The Government has indicated that journeys between Leeds and Scarborough could cost as much as £12, whilst tickets between Hull and York might reach £5.50.
Prior to today’s announcement, a Treasury source said: “We understand the cost of living is a priority for the British people. That is why we are investing in Britain’s renewal to make working people better off.”
The Government argued in October that maintaining the lower £2 rate was not financially sustainable. However, some metro mayors have chosen to fund an extension of the £2 cap within their own areas.
Despite this move from the Chancellor, the Liberal Democrats have strongly criticised the decision not to restore the £2 cap.
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Bus fares will be capped but opposition parties are calling for more generous concessions
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Lib Dem transport spokesman Paul Kohler said: “Household budgets are still really feeling the squeeze, so many will be really disappointed to see that the Government is moving to make the bus fare hike permanent.
He added: “This will hit those who rely on public transport to get around to their local high street or to work and school in the pocket. People have been telling them they got this wrong, but Labour clearly isn’t listening.”
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