New UK PM Burnham: Bus fare cap to be cut to £2 from January 2027

Published Jul 22, 11:21 AM UTC

Newly appointed UK Prime Minister Andy Burnham has announced a reduction in the price cap on local bus fares across England, lowering it from £3 to £2 for a one-year period starting January 2027. This is the second measure of his cost-of-living agenda, following the abolition of VAT on household electricity bills for six months. The price cap was originally introduced by the Conservative government in 2023 at £2, then raised to £3 by Burnham's predecessor Keir Starmer in 2025. Burnham stated that affordable transport is a basic necessity and that no one should be excluded due to cost. The reduction will be financed by reallocating planned climate protection investments, with some now recorded as loans rather than expenditures. Burnham took office on Monday, succeeding Starmer, and has promised to give Britons more 'room to breathe.'

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