Harrogate and Knaresborough MP Tom Gordon has hit out at the government's plan to increase the UK bus fare cap.
Prime Minister Keir Starmer has announced that the bus fare cap is set to rise by 50% from £2 to £3 in today’s budget.
And Tom Gordon has expressed concern that the policy will be a tax on working people - disproportionately impacting those who rely on the bus to get to work and make a living.
He said:
“This announcement is a huge blow to all those who were already struggling with the cost of living, set to see more pennies pinched from their purse.
“The policy will stifle economic growth not just nationally, but locally here as well - where many people take the bus to shops, markets and restaurants.
“I’m gravely worried about the impact on small business in Harrogate and Knaresborough if less of those customers are coming to the town centre because of the bus fare hike.”
The current £2 cap on single bus fares is due to come to an end on 31st December 2024.
Mr Gordon added:
“It leaves me and many small business owners wondering whether the cost saving of this policy is worth the damage to already struggling town centres and the wider economy.
“I know that to get between many communities in North Yorkshire, we have to change buses at least once.
“This means that what is a £2 increase on a return journey for some is at least a £4 increase on a return journey for many bus users in our part of the country.”
From 1st January 2025 through to the end of December 2025, the new single fare cap of £3 will be introduced.
Ahead of the Budget today, Keir Starmer said:
“The Tories only funded the cap until the end of 2024, and therefore that is the end of the funding in relation to the £2 bus fare.
“I do know that this matters, particularly in rural buses, and that’s why I’m able to say to you that in the budget, we will announce there’ll be a £3 cap on bus fares until the end of 2025, because I know how important it is.”
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