Transport Executive Warns of Significant Bus Fare Increases if £2 Cap Ends

Bus operators indicate that substantial fare increases cannot be dismissed should the Labour government discontinue the existing cap in the forthcoming Budget. The BBC has learned that the government is expected to discontinue the £2 fare cap for the majority of bus routes across England. This initiative, initially introduced by the preceding Conservative administration, is scheduled to conclude on 31 December 2024. Bill Hiron, who leads Eastern Transport Holdings, informed the BBC’s Today Programme that he could not discount the possibility of fares increasing fourfold. He stated, “An overnight increase from £2 to whatever it might be is such a big jump that not only will it cause hardship for some people but, of course, it will result in some people saying I’m not going to take the bus anymore.” Both the Department for Transport and the Treasury have been approached for their comments. According to bus industry sources who spoke to the BBC, the prevailing anticipation over the past six months was that the cap would be raised to £2.50 in the New Year, followed by another increase to £3 in March. Several bus operators have informed the BBC that, within the past week, there has been a notable alteration in the government’s communication, indicating a potential termination of the cap. Chancellor Rachel Reeves is not anticipated to prolong the £2 fare initiative beyond the close of this year, a decision that could result in annual savings of £350m for the government. Sources within Whitehall contend that the existing scheme does not offer adequate value for taxpayers. In private discussions, a bus operator concurred, suggesting that the measure, originally implemented to address the cost of living crisis, would ultimately jeopardize the sustainability of routes and operations, particularly within rural regions. The BBC has received information that civil servants from the Department for Transport have been engaged in intensive negotiations with their counterparts at the Treasury. An official announcement is anticipated during the Chancellor’s Budget presentation on Wednesday. Silviya Barrett, who serves as the director of policy and research at Campaign for Better Transport, commented, “It has really helped with the cost of living. We have had some supporters who have saved about £100 a month.” She further added, “We think there needs to be a full review about what should replace it such as a mix of fare promotions and concessions.” The £2 fare cap was initially introduced for a three-month period in January 2023, but its duration has since been extended for nearly two years. A significant apprehension is that certain bus users might face fare increases of up to £10. Mr Hiron remarked, “People will forget that they used to pay in some cases £5, £6, £7 for their journey. £2 would have become the normal fare.” He continued, “The real fare now for some of those journeys is in most cases higher than it was two years ago.” Mr Hiron asserted that bus users ought to receive greater value for their expenditure compared to two years prior, maintaining that bus routes have seen improvements since the cap’s implementation and expressing his view that bus reliability “has got better.” Robert Jenrick, a candidate in the Conservative leadership race, characterized the prime minister as “clueless” and suggested that he “must think people who get the bus aren’t working people.” Jeremy Corbyn, the former Labour leader and independent Member of Parliament for Islington North, described the government’s choice to abolish the £2 bus fare cap as “disgraceful.” He further stated that this action would “harm the poorest in society, and discourage public transport at a time when it is needed more than ever,” in a statement published on the social media platform X.