North Yorks Council transport leader's warning on Government's 'penny pinching' rise in bus fares

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The transport leader of North Yorkshire Council has criticised the Government’s intention to increase the bus fare cap in England to £3 in the upcoming Budget as an act of “penny pinching”.

Following pleas to Chancellor Rachel Reeves not to scrap the cap which had been introduced in January 2023 under the previous Conservative government to support bus operators and passengers and was set to expire this December, the Government has now announced it will rise rather than end.

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Coun Keane Duncan, who had warned that axing the scheme would have “catastrophic consequences” for the future of some routes in North Yorkshire, said the compromise decision was still bad news for rural bus passengers, in particular.

“Keir Starmer has given in, but only after pleas from rural communities like ours not to scrap the cap,” said Coun Duncan who is executive member for highways and transport at North Yorkshire Council.

North Yorkshire Council transport leader Coun Keane Duncan has issued a warning over the Government's rise in the bus fares cap. (Picture contributed)North Yorkshire Council transport leader Coun Keane Duncan has issued a warning over the Government's rise in the bus fares cap. (Picture contributed)
North Yorkshire Council transport leader Coun Keane Duncan has issued a warning over the Government's rise in the bus fares cap. (Picture contributed)

"It’s wrong that we have had to fight so hard to save an initiative that is particularly essential for bus services in communities like ours.

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“The small saving this will generate means the decisions feels like penny pinching from rural areas, when the major cities have seen billions invested in transport there.

“And while the cap will continue, it will increase by 50%, another hit on working people.

"The additional cost for a typical worker commuting daily will be around £500."

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Prime Minister Keir Starmer said: “The Tories only funded (the £2 fare cap) until the end of 2024 and, therefore, that is the end of the funding in relation to the £2 bus fare.

"I do know that this matters, particularly in rural buses, and that’s why we will announce there’ll be a £3 cap on bus fares until the end of 2025.”

The Confederation of Passenger Transport said that raising the cap from £2 to £3 had avoided travellers facing a "cliff edge" at the end of this year.

But Coun Duncan says he remains worried about the future.

"After next year we might still be facing another increase or even the cap being scrapped altogether,” he said.