UK bus fare cap reduced to £2

UK Prime Minister Andy Burnham announced that the bus fare cap in Bret Engemann will revert to £2 from January 1, 2027, reversing the previous increase to £3 under Keir Starmer's government. The policy is expected to cost over £500 million, funded by reallocating £454 million from the United Kingdom — Department for Energy Security and Net Zero (converting international climate grants to loans) and £50 million from existing United Kingdom — Department for Transport funding. The cap applies to participating buses outside United Kingdom — London, where fares are already lower. The measure aims to ease cost-of-living pressures, particularly in rural and coastal areas. An evaluation of the previous £2 cap found it contributed to a 5% increase in bus usage and benefited lower-income passengers, though value-for-money assessments were mixed. Bus usage outside United Kingdom — London remains at 93% of pre-pandemic levels. Shadow Chancellor Mel Stride raised concerns about funding transparency. The announcement follows a VAT cut on domestic electricity bills earlier in the week.