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Greater Manchester to survive key public transport cut as government prepares to scrap bus fare cap

Burnham's on the buses and has no intention of getting off any time soon.

Danny Jones Danny Jones - 29th October 2024

As the Labour Party prepares to reveal its first budget in nearly a decade and a half, early reports are suggesting that the government is planning to scrap the £2 bus fare cap but, fortunately, the policy won’t affect Greater Manchester.

Set to be delivered on Wednesday, 30 October by Chancellor Rachel Reeves, the national £2 cap on bus fares – which was only introduced back in January 2023 and continually extended ever since – has been a big money-saving measure for many commuters and those struggling in the cost of living crisis.

Reeves and Prime Minister Keir Starmer have already warned that Labour’s first budget since 2010 will feature a series of spending cuts and tax rises as they look to stabilise Britain’s economy but for millions across the country, this will come as a frustrating update.

According to The Mirror, this could see the worst affected places see fares jump up as much as £10, meaning affordable buses will no longer be a viable travel option. Luckily for us here in Greater Manchester, it has been confirmed the impending changes won’t apply here.

Confirming the news on Tuesday, 29 October, Mayor Andy Burnham detailed that the £2 bus fare cap will remain across all 10 boroughs as part of the ever-growing Bee Network and Transport for Greater Manchester’s (TfGM) wider plans moving forward.

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Speaking in an official statement shared on the local Combined Authority website, Burnham said: “Our policy aim throughout has been to create a low-fare, high-patronage system similar to the one that has brought higher growth and productivity to London. This will remain the mission of the Bee Network…

“Because of the decisions we have taken, and the progress we have made, GM is in a different position to other areas across England when it comes to bus funding and bus fares. We are beginning to benefit from similar financial advantages as those long enjoyed by London.”

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Meanwhile, the bulk of the country is set to face a number of financial changes when the MP for Leeds West and Pudsey announces the first Labour budget in 14 years in full this week, with the bus fare cap now reportedly set to be increased to at least £3, along with changes to pension tax, the winter fuel allowance and more expected.

In Parliament this week, Speaker of the House of Commons Lindsey Hoyle called out Lewisham-born Reeves for the level of media attention her upcoming budget has received of late:

As for Burnham, he went on to detail that, “Firstly, the per-kilometre cost of our new contracts are on average one-third cheaper than tenders in the old deregulated system. Secondly, by taking control of the farebox, any profits from rising patronage can be kept and recycled for the benefit of GM residents rather than retained by private operators.

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“Thirdly, control of the system allows us to take further steps to help our residents. For instance, by making annual Bee Bus Passes available through our 14 credit unions via weekly payments, residents can cut the cost of weekly bus travel by around £5.”

Greater Manchester was the first area in the UK to propose the bus fare cap to begin with and set an important precedent for other counties to push for the national policy.

The 54-year-old is also set for an “emergency meeting” with the Rail North Committee on the same day that the government’s budget will be revealed after slamming the “embarrassing” state of the current regional network.

People looking to use the train service this past Sunday, 27 October were advised not to travel in now-deleted social media posts after yet more warnings regarding the possibility of last-minute cancellations.

Read more:

Back to the buses, Burnham went on to add: “We hope that the measures we are taking will continue the increase in patronage we have seen since the introduction of the original £2 cap in September 2022 and the launch of the Bee Network in September 2023.

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“The more people use the system, the easier it will be for us to sustain the low-fare structure. This said, it is only by mid-2025 when we have completed Phase 1 of the Bee Network, and we know the level of funding we have, that we’ll be in a position to judge the financial outlook for the new system.”

While they have promised that the £2 cap bus fare will remain for the whole of 2025, the figure will be subject to a mid-year review that could potentially see the decision to up the price in the future.

Put simply, he signed off by assuring that the local authorities remain defiant on the issue and “will keep [the bus fare] as long we can.”

In the grander scheme of things, Greater Manchester is edging ever closer towards an Oyster card-esque set-up as mentioned above, with the first of the key steps in this process set to be rolled out in January next year. Find out more below.

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Featured Images — TfGM (via Wikimedia Commons)/World Economic Forum (via Flickr)