UK Labour Raises Bus Fare Cap Amid Fiscal Reforms

UK Prime Minister Keir Starmer has announced an increase in the bus fare cap from £2 to £3, effective until the end of 2025, as part of a broader budget strategy to address the country's fiscal challenges. This decision comes amid discussions of necessary tax hikes and spending adjustments to plug a £22 billion fiscal gap inherited from the previous Conservative government. The fare increase, while aimed at easing public finances, has sparked criticism for potentially harming rural communities and undermining environmental goals by discouraging public transport use. Starmer's government is positioning this move as part of a larger effort to stabilize the economy, despite backlash from Labour's base and environmental groups. Transport Secretary Louise Haigh played a significant role in negotiating to maintain a fare cap, albeit at a higher rate. The budget, which also includes significant tax increases, is seen as a critical juncture for Labour as it seeks to maintain public support amidst a challenging economic environment.