Andy Burnham, the newly appointed Prime Minister, has reinstated a £2 cap on bus fares across England to ease the cost-of-living pressures many households face. This move reverses the previous increase to a £3 cap introduced by his predecessor, Sir Keir Starmer. The new cap will be in place through 2027, aiming to provide consistent and affordable transport for commuters.
During a visit to Bath, Burnham emphasized the impact of the bus fare cap, stating it will “really help people with the cost-of-living pressures they’re facing” and ensure “money in people’s pockets” throughout the year. Doug Claringbold, regional boss of First West of England, welcomed the announcement and expressed hope the lower fares will encourage more bus use across the region.
Regarding income tax, Burnham confirmed there is no immediate plan to increase the personal tax allowance beyond the current £12,570 but indicated the Government will review it in the upcoming budget. He stressed the importance of honest communication in politics amid widespread speculation but stopped short of making any firm commitments at this stage.
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Burnham also addressed rumors about dividing the Labour Party following his Cabinet reshuffle, which saw some Starmer allies replaced. He assured that many remain in their posts and described the changes as necessary for bringing fresh direction to the Government. His approach prioritizes uniting all wings of the party to reflect its diverse membership.
Funding for the bus fare cap involves reallocating £454 million, partly by converting international climate finance grants into repayable loans—a move criticized by environmental groups like Friends of the Earth as a “travesty.” The scheme’s total cost is expected to exceed £500 million, including additional funds from the Department for Transport.
Shadow Transport Secretary Richard Holden questioned how Labour plans to fund this initiative, warning that without cutting benefits spending, increased borrowing or higher taxes could be inevitable.
In parallel with these developments, Burnham is finalizing his ministerial team. Scottish Labour leader Anas Sarwar is tipped for a peerage and a role in the Department for Business, Innovation, Science and Trade. Other key appointments include Dan Jarvis returning to his security minister post, James Murray becoming Financial Secretary to the Treasury, and Anna Turley stepping down as Labour Party chairwoman to join the Home Office as a minister.
Burnham’s new Cabinet features a balance of continuity and change, with 17 ministers reappointed to their existing roles, including Sarah Sackman as justice minister and Luke Pollard as defence minister, demonstrating his commitment to stable governance while steering the Government in a new direction.