Bus Minister Simon Lightwood has said Labour is delivering a new era for bus travel, with cheaper fares, stronger local control and expanded franchising designed to give passengers more reliable and affordable services.
Speaking at the UK Bus Summit, Lightwood said the Government was working with local leaders and the transport industry to improve services after years of decline.
He said:
“We’re delivering better bus services and empowering local leaders through franchising and making journeys more affordable for passengers by capping bus fares at £2.”
The £2 national fare cap will apply to eligible single journeys in England outside London from 1 January 2027, replacing the existing £3 cap and running throughout 2027. The Government has committed £400 million to fund the measure.
More power for local leaders
Lightwood also highlighted Labour’s drive to give mayors and councils greater control over their bus networks. The Bus Services Act has expanded the powers available to local transport authorities, allowing them to pursue franchising and other locally led models so that decisions over routes, frequencies and services can be shaped around community needs rather than being left solely to commercial operators.
The Government has already provided additional funding to help six mayoral authorities move towards franchising, including Liverpool City Region, West Yorkshire, South Yorkshire, the North East, West Midlands and Cambridgeshire and Peterborough.
That approach has already begun to take effect in Liverpool City Region, where the first services have returned to public control under Mayor Steve Rotheram.
£2 fare cap to ease cost of living
The decision to reduce the national fare cap from £3 to £2 was one of Prime Minister Andy Burnham’s first cost-of-living announcements after taking office.
Ministers estimate passengers could save up to a third on some journeys, with particular benefits for people in rural and coastal communities where longer-distance fares can otherwise be considerably higher.
The Government has also introduced other measures aimed at widening access to buses, including free travel for children aged five to 15 during August and plans to extend free bus travel for eligible disabled passengers throughout the day.
Lightwood puts buses at centre of local growth
As Minister for Buses and Local Transport, Lightwood’s responsibilities include buses and coaches, fares, local transport, devolution and transport decarbonisation.
His message to the summit was that better buses are not simply a transport issue. Reliable and affordable services can connect people to employment, education, healthcare and town centres while supporting local businesses and regional economies.
The Government has committed more than £3 billion for buses over the next three years, alongside the wider reforms giving local authorities greater control over services.
For Lightwood, Labour’s approach combines affordability with devolution: cutting the cost of journeys while giving communities greater power to decide where buses run, how often they operate and how local networks should develop.
