Sir Keir Starmer has confirmed that the £2 bus fare cap will rise in the Autumn Budget.
The prime minister made the announcement during a speech ahead of this week's budget in Birmingham on Monday morning.
Rachel Reeves will deliver her first Autumn Budget this week, as the government tries to bridge what it has called the £22 billion “black hole” in the public finances.
READ MORE: Huge Government investment in schools - but how far will it stretch?
Asked whether the £2 cap will be scrapped in the chancellor's upcoming statement, set to take place in the House of Commons on Wednesday, the prime minister confirmed the cap would rise to £3 next year.
The £2 bus fare cap was introduced in September 2022 by the Conservatives during the cost-of-living crisis to help people travel despite the rising price of fuel and goods. The current £2 cap will remain in place until the end of 2024 before rising for 2025, Sir Keir said.
"On the £2 bus fare, first thing to say is the Tories only funded that until the end of 2024 and therefore that is the end of the funding in relation to a £2 capped fare," he told reporters. "I do know how much this matters, particularly in rural communities where there’s heavy reliance on buses."
Announcing the news, he said: "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."
Sir Keir Starmer also told this morning's press conference that the chancellor will be announcing £240 million in funding for local services to help get people back to work. He said the UK is “the only G7 country for whom economic inactivity is still higher than it was before Covid”.
The prime minister
country
Schools
community
audience
travelers
reports
election
Keir Starmer