New Prime Minister Andy Burnham has announced a significant measure to help households struggling with rising expenses—the reinstatement of a £2 cap on bus fares across England. This decision reverses the prior plan to raise the cap to £3, implemented under former Prime Minister Sir Keir Starmer.
Speaking during his first visit to the West Country in Bath, Burnham emphasized that the £2 fare cap would be in place throughout 2027, aiming to directly ease cost-of-living pressures for commuters and families alike. “It will really help people manage the financial challenges they face,” Burnham said.
Doug Claringbold, Regional Manager of First West of England, expressed strong support for the move, hoping that the reduced fares will encourage more people to use public transport across the West of England.
READ MORE: Fire Erupts at Joe & the Juice on Bath High Street – Latest Updates
READ MORE: Police Granted Enhanced Powers Ahead of Taunton Protest
When questioned about potential changes to the income tax personal allowance, Burnham provided a cautious response. While he acknowledged that increasing the current £12,570 tax-free allowance is being considered for the upcoming budget, he stopped short of making any immediate commitments. “There is no unfunded promise at this point,” he said, stressing the importance of transparency and trust in politics.
Earlier in the week, Burnham had indicated openness to raising the tax allowance after hearing widespread frustration during the Makerfield by-election campaign.
On the political front, Burnham denied allegations that his new Cabinet reshuffle was driven by factionalism or personal vendettas. He highlighted the retention of many former Starmer allies in key government roles and emphasized his goal of creating a team that reflects all sides of the Labour Party.
The bus fare cap reintroduction will be funded partly through a controversial shift: replacing some grants for international climate projects with repayable loans. This funding strategy amounts to £454 million, with £400 million from climate finance loans and £54 million saved from the Department for Energy Security and Net Zero budget. Friends of the Earth has strongly criticized this move, calling it “nothing short of a travesty.”
The overall cost of the fare cap scheme is expected to exceed £500 million, with the remaining funds coming from existing Department for Transport allocations for buses.
Opposition voices, such as Shadow Transport Secretary Richard Holden, have challenged the government on financing these commitments, suggesting that borrowing or increased taxes may be necessary due to Labour’s reluctance to cut benefits spending.
Meanwhile, Burnham continues to build his ministerial team. Notable appointments include Scottish Labour leader Anas Sarwar, expected to receive a peerage and a role in the Department for Business, Innovation, Science, and Trade. Several ministerial shifts and reappointments have also been confirmed as Burnham shapes his government for the new direction he envisions.