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21 July 2026

Will the new prime minister cap bus fares at £2?

Policy & GovernmentEconomicBus & CoachNews

Andy Burnham, the new prime minister of the UK, wants to introduce a £2 cap on bus fares across the country if the public purse allows, according to his allies.

This idea to lower the bus fare cap to support people with the cost of living has been backed by Transport Secretary Heidi Alexander, but the decision will depend on whether ministers can make a strong enough economic case to the Treasury.

A row of yellow Bee Network double-decker buses are parked on a city street.

The former Conservative government introduced a £2 limit on single fares from January 2023, which was raised to £3 under Labour from January 2025. But, as Mayor of Greater Manchester, Burnham kept local fares capped at £2 across the local bus network.

The new Labour leader, and the UK’s seventh prime minister in a decade, delivered his inaugural speech on Monday 20 July, promising “to give people some breathing space” and “help with the cost of living”.

In a recent Instagram video earlier this month, Burnham said he wanted to see if there’s anything that can be done to support young people with the cost of bus travel by reducing ticket prices. In Manchester, 16 and 17-year-olds can travel by bus for free across the region following a policy brought in by Burnham in 2019. He also brought local buses back under public control during his tenure as mayor, with a franchising system that means local authorities can set routes, timetables and fare caps while private companies bid to operate services.

Burnham intends to bring the Manchester blueprint to the rest of the UK, pledging to take greater public control of the country’s utilities in his first speech as Labour leader on Friday 17 July.

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