London (Parliament Politic Magazine) – Bus fares in England will be raised to £3 in the Budget, PM Sir Keir Starmer announced.
It is an expansion on the current £2 cap, raised by the Conservatives to encourage people to use public transport after the Covid pandemic. In an address, the Prime Minister stated: “On the £2 bus fare, the first thing to say is the Tories only funded that until the end of 2024 and therefore that is the end of the funding with a £2 capped fare.
“I do know how much this matters, particularly in rural communities where there’s heavy reliance on buses. 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.”
It had been widely noted that the £2 cap was set to be dumped in the Chancellor’s first Budget on Wednesday, sparking worries people may be incapable of affording to get to work, college or hospital. Bus operators were apprehended to be largely resigned to the £2 cap being dumped, but had pressed for it to be raised to no more than £2.50.
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Before Rachel Reeves addressed the budget announcement, the Prime Minister stated he would support the Government’s Budget tax rises “all day long”. Sir Keir expressed that “nobody wants higher taxes, just like nobody wants public spending cuts” but he had to be “realistic about where we are as a country”.
He contended:
“This is not 1997 when the economy was worthy but public services were on their knees. And it is not 2010 where public services were strong but the public finances were weak. We have to deal with both sides of that coin. I will support our tough decisions all day long. It is the right thing for our government and it is the only way to get the investment that we need.”
In the same address, Sir Keir also stated that the Chancellor will notify £240 million in funding for local services to assist get people back to work when she delivers her fiscal report in two days. The Prime Minister expressed that the UK is “the only G7 country for whom economic inactivity is still more elevated than it was before Covid. That’s not just bad for our economy,” he said. It’s also bad for all those who are locked out of opportunity. So the Chancellor will inform £240 million in funding to deliver local services that can help people back into work.”