Bus fares in England to rise from £2 to £3 in Autumn Budget

The Prime Minister told crowds in Birmingham that funding for the £2 cap on fares in England would run out at the end of 2024.

When the policy was announced, it aimed to cut a third of the ticket price for the average journey and reduce emissions and congestion by taking an estimated two million cars off the roads.

"The Tories only funded [the £2 fare cap] until the end of 2024, and therefore that is the end of the funding in relation to the £2 bus fare," the Prime Minister said.

The £2 bus fare cap will be replaced by a new £3 cap until the end of 2025 at this week’s Budget, the Prime Minister has confirmed. (Image: Darren Staples)

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

The decision by the prime minister and chancellor comes despite a number of Labour-elected mayors pushing to keep the cap in place.

Lib Dem's Tim Farron criticises move as a 'bus tax'

Liberal Democrat environment spokesperson Tim Farron MP described the move as "without a doubt a bus tax".

Meanwhile, co-leader of the Green Party of England and Wales, Carla Denyer, posted to social media to say: "The Labour government has confirmed a 50% rise in bus fares - a blow for everyone who relies on buses in the cost of living crisis.

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"This is the wrong approach – government should be supporting our economy and environment by making it easier to get around without a car."

The plan was also criticised by Conservative shadow transport secretary Helen Whately, who said: “That’s £10 a week extra to get to work under Labour. Clearly, bus users don’t count as ‘working people’ either.”