Business & Economics
Burnham Launches £2 Nationwide Bus Fare Cap Funded by Climate Budget Re-Allocation
On 22 July 2026, new UK Prime Minister Andy Burnham ordered all single bus tickets outside London to be capped at £2 from January 2027, financing the subsidy by diverting roughly half a billion pounds from the Energy Security & Net Zero budget.
Focusing Facts
- Downing Street estimates £454 million will fund the cap, rising to "more than £500 million" once £400 million of international climate grants are switched to loans.
- Separately, VAT on domestic electricity will be abolished on 1 Oct 2026, trimming about £45 off the average £1,862 annual household bill.
- The cap cuts typical regional single fares from about £3 to £2 but does not cover London, which already has a regulated fare regime.
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