Britain’s new Prime Minister, Andy Burnham, has announced plans to reduce the price of single bus tickets by up to one-third as part of his government’s early efforts to ease the cost-of-living crisis.
Burnham, who became Britain’s seventh prime minister in a decade amid prolonged political instability and stagnant living standards, is seeking to quickly demonstrate that his administration can improve people’s daily lives.
Earlier this week, he revealed that the government would remove a tax on domestic electricity bills from October 1, a move expected to save households about £45 annually. He also confirmed that the maximum single bus fare will be reduced from £3 to £2 starting in January.
Early Measures to Provide Relief
Although the financial benefits of the new policies are relatively modest, Burnham said they are aimed at giving families more “breathing space” as they cope with rising living costs.
However, his government faces limited financial flexibility, prompting speculation that taxes or government borrowing could increase when the national budget is presented later this year.
When asked whether tax increases were being considered, Burnham replied, “we’ll take decisions on tax at the budget,” adding that his immediate focus is on reprioritising government spending to address pressing issues such as the cost of living.
“I’ve made a number of moves that will deal with some of these challenges, although I appreciate there’s a lot more to do,” he told reporters.
Tax Changes Under Consideration
The 56-year-old former Mayor of Greater Manchester also said the government is reviewing the tax-free personal allowance, which has remained frozen since 2021, resulting in more people paying income tax as wages rise.
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While any increase in the allowance could cost billions of pounds, Burnham stressed there is currently “no commitment (and) no unfunded promise” to make such a change.
“We’ll have to look at it at the budget alongside everything else,” he said.
The government said the £2 bus fare cap will cost more than £500 million. Of that amount, £100 million will come from the existing transport budget, while £400 million will be sourced by converting grants for international climate projects into loans through the Energy Security and Net Zero Department.
The reduced fare will apply across England outside London, which operates under a separate regulated bus fare system.
Reuters
