Sheffield buses: Fare cap to rise from £2 to £3 after Labour budget, Prime Minister announces

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The first Labour budget will increase the bus fare cap from £2 to £3 and extend the measure to the end of 2025, the Prime Minister has said.

The 50 per cent increase on the cap will be announced in the Chancellor Rachel Reeves’ first budget on Wednesday, October 30, and will come into effect in 2025.

Asked about rumours around potential changes to the cap during a pre-budget speech in the West Midlands, Keir Starmer said: “On the £2 bus fare, the first thing to say is the Tories had only funded that til the end of 2024 and therefore that is the end of the funding in relation to the £2 capped fair.

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Prime Minister Prime Keir Starmer speaks at an event in the West Midlands on October 28, 2024. He has said the government will extend the bus fare cap to the end of 2025 and raise it to £3.Prime Minister Prime Keir Starmer speaks at an event in the West Midlands on October 28, 2024. He has said the government will extend the bus fare cap to the end of 2025 and raise it to £3.
Prime Minister Prime Keir Starmer speaks at an event in the West Midlands on October 28, 2024. He has said the government will extend the bus fare cap to the end of 2025 and raise it to £3. | Getty Images

“I do know how much this matters, particularly in rural communities where there’s heavy reliance on busses, and that’s why I’m able to say to you this morning that in the budget, we will announce there will be a £3 cap on bus fares to the end of 2025, because I know how important it is. So that will be there in the budget on Wednesday.”

It means operators of bus services in Sheffield and across England will be able to up the price of a single one-way ticket to £3. The existing cap of £2 was due to expire in December and the new government will extend the cap into 2025, whilst upping the limit.

The Prime Minister’s announcement is the first news of the caps extension. The Department for Transport, headed up by Sheffield Heeley MP Louise Haigh, is yet to comment.

Buses on Arundel Gate in Sheffield city centre.Buses on Arundel Gate in Sheffield city centre.
Buses on Arundel Gate in Sheffield city centre. | National World

The Transport Secretary will feel she has hit the ground running since taking office in July, quickly announcing plans to enable local authorities to explore public control of bus services - as seen in Greater Manchester.

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South Yorkshire Mayor Oliver Coppard recently launched a 12-week public consultation on the possibility to replicating Andy Burnham’s work in our region.

The Mayor said the change would effectively allow the authority to use the money from the profitable, effective routes and put them into the less profitable routes “so everybody can have a better bus service”.

Bus fares in London and Greater Manchester will remain at £1.75 and £2 respectively. Both regions have public control of their bus networks, meaning their funding is structured differently and they are excluded from the broader fare cap.

The Confederation of Passenger Transport said whilst it is “pleased” the government is taking steps to implement a “managed exit” from the £2 bus fare cap “an increase to £3 will still present challenges for many passengers, particularly those who rely on buses as their primary means of affordable travel”.

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