Mayor has asked that the Combined Authority Board hold an
‘extraordinary' meeting on Friday December 13 to consider options
for retaining a £2 cap on bus fares for three months to the end
of March 2025.
Prior to October's Budget, the £2 Fare Cap was due to expire at
the end of this year. As announced by the Prime Minister and
Chancellor, a decision was made to reinstate the cap for 2025 at
the new rate of £3.
In explaining his motivations, Mayor Dr said: “It was a huge relief to know that the national
fare cap would continue through to the end of 2025 and the new
rate is a good deal better than the nothing otherwise planned. As
the Transport Authority, we have an opportunity to build on
government's support and keep bus fares as low as possible for
our resident passengers and that's why I've asked my board
colleagues to meet and discuss the best use of the funding we
have available.”
Keeping the £2 fare would support the Combined Authority's Bus
Strategy, which focuses on boosting passenger numbers, improving
bus services, and encouraging public transport as an attractive,
cost-effective alternative to driving.
The estimated cost of subsidising fares at £2 for three months is
about £1 million. This would be funded through the Combined
Authority's 2024/25 Bus Service Improvement Plan (BSIP) grant.
The grant is for initiatives like keeping travel affordable and
supporting bus services.
If approved, the Combined Authority will work with bus operators,
aiming to ensure that the £2 fare cap remains in place. Decisions
about any extension to the cap beyond March 2025 will be made as
part of the Combined Authority's budget and medium-term financial
plan-setting process in early 2025.
