The Prime Minister, Sir Keir Starmer, visited Birmingham recently, just ahead of the Chancellor’s historic budget, where he officially announced that the £2.00 flat bus fare would be increased by 50% to £3.00. There had been widespread speculation reported in the media suggesting that the cap might be abolished altogether or increased by a modest amount, which, in the end, proved to be the case.
The scheme, which cost the taxpayer over £200 million, has seen passenger journeys rise by 20% between March 2022 and March 2023, according to a report by the DfT . The report concluded that the scheme delivered between 70p and 90p in social benefits for every pound spent. However, the Prime Minister acknowledged that the social benefits were significant enough to justify retaining the cap, particularly for those living in rural communities. Speculation was rife in the media about the cap’s long-term future, as it was due to end by the end of the year.
The Confederation of Passenger Transport (CPT) Chief Executive, Graham Vidler, said: “We are pleased that the Government has taken steps to implement a managed exit from the £2.00 fare cap, in line with our proposals. While it will avoid the dangers of a cliff edge at the end of the year, an increase to £3.00 will still present challenges for many passengers, particularly those who rely on buses as their primary means of affordable travel.”
Mr Vidler went on to say: “While the increase represents a step towards making the fare cap more sustainable, CPT remains concerned about the potential impact on services if the fare changes are not matched with long-term funding. The move to the £3.00 fare cap for one year reflects the Government’s intent to gradually transition fare policy, but it must be backed by a consistent funding strategy. Without this support, we risk seeing essential services, especially in rural and underserved areas, becoming unsustainable over time. Affordable travel should not come at the cost of service viability.”
CPT will continue to engage with the Government and local authorities to advocate for the funding and support needed to maintain and strengthen the UK bus network. By aligning fare structures with sustained investment, we can protect essential routes, ensure affordability, and promote a reliable bus network that serves communities across the country.”
As an exercise, I did a little investigative work to see just what £3.00 will buy in today’s modern world and was delighted to find that I could purchase a Haribo Starmix sweets gift box or even a personalised ballpoint pen. Extending the search worldwide, I discovered that in Berlin, I could enjoy a currywurst and a good old German beer. Meanwhile, in Gothenburg, I could savour a delicious Swedish kanelbulle (cinnamon bun). But best of all, in southern Spain, £3.00 could get me a nice glass of local red wine, accompanied by small tapas dishes such as tortilla or croquettes.
Good luck trying to match these gems in the UK! However, on the positive side, you can ride to your heart’s content on a good old British bus all day long. So, thank you, Sir Keir Starmer, for ensuring that the wheels on the bus keep going round and round all day long, just as the song once said.
Written by Austin Birks