In a move that could impact the day-to-day expenses of Sussex’s bus commuters, Prime Minister Keir Starmer has announced that the cap on bus fares will increase from £2 to £3 starting in 2025, a decision set to affect riders across the region. Speaking ahead of this week’s highly anticipated Autumn Budget, Starmer emphasized that the fare increase is a necessary step, driven by the need to stabilize public finances.
Addressing public concern, Starmer pointed out that the previous government had only allocated funding to maintain the £2 cap through 2024. “The Tories only funded that until the end of 2024,” he remarked, “and therefore, that is the end of the funding in relation to a £2 capped fare.”
Starmer assured the public that the cap is still a priority for the government, stating, “I do know how much this matters, particularly in rural communities where there’s heavy reliance on buses.” The Labour leader explained that the new £3 cap will remain in place until the end of 2025, giving local commuters a clearer picture of future transport costs.
Both Starmer and Chancellor Rachel Reeves have described the fare hike as one of several “tough decisions” necessitated by the £22 billion “black hole” in public finances. As Chancellor Reeves prepares to unveil the full Autumn Budget on October 30, she is also underlining the importance of balancing the budget while addressing pressing infrastructure needs.
The increased fare cap is expected to generate approximately £350 million annually for the Treasury, funds that the government says will support broader public services. However, some commuters and transport advocates are raising concerns over the impact on low-income and rural populations, who rely heavily on bus services.
Recent government analysis, reportedly leaked to the public, indicates that the £2 fare cap delivered mixed economic returns. For every pound spent on the cap, benefits were valued between 71p and 90p, indicating a potential shortfall in overall cost-effectiveness.
