Burnham announces £2 bus fare cap from January

Single bus fares across England will be capped at £2 from January, Prime Minister Andy Burnham has announced.

Susannah Streeter, chief investment strategist at Wealth Club, said: “The new Burnham administration is trying to build a buffer against a fresh cost-of-living squeeze amid the threat of higher prices.

“Following yesterday’s VAT cut on household electricity bills, today’s £2 bus fare cap is another attempt to put money back into consumers’ pockets before higher energy costs start filtering through the economy.

“For many households, particularly those reliant on buses to get to work, the savings will offer an immediate salve to what have become painful everyday costs.

“But in many ways policymakers are in a race against forces beyond their control.

“If conflict in the Middle East keeps oil prices simmering near recent highs, the relief offered by cheaper electricity and transport could quickly be eroded by rising fuel, freight and wider consumer costs.

“The cost-of-living battle may be getting a helping hand from government, but it is still likely to be fought on the global stage.”