Combined Authority Board to decide on retaining £2 bus fare cap to March 2025

Combined Authority Board to decide on retaining £2 bus fare cap to March 2025

Mayor Nik Johnson has asked that the Combined Authority Board hold an ‘extraordinary’ meeting on Friday December 13 to consider options for retaining a £2 cap on bus fares for three months to the end of March 2025.

Prior to October’s Budget, the £2 Fare Cap was due to expire at the end of this year. As announced by the Prime Minister and Chancellor, a decision was made to reinstate the cap for 2025 at the new rate of £3.

In explaining his motivations, Mayor Dr Nik Johnson said: “It was a huge relief to know that the national fare cap would continue through to the end of 2025 and the new rate is a good deal better than the nothing otherwise planned. As the Transport Authority, we have an opportunity to build on government’s support and keep bus fares as low as possible for our resident passengers and that’s why I’ve asked my board colleagues to meet and discuss the best use of the funding we have available.”

Keeping the £2 fare would support the Combined Authority’s Bus Strategy, which focuses on boosting passenger numbers, improving bus services, and encouraging public transport as an attractive, cost-effective alternative to driving.

The estimated cost of subsidising fares at £2 for three months is about £1 million. This would be funded through the Combined Authority’s 2024/25 Bus Service Improvement Plan (BSIP) grant. The grant is for initiatives like keeping travel affordable and supporting bus services.

If approved, the Combined Authority will work with bus operators, aiming to ensure that the £2 fare cap remains in place. Decisions about any extension to the cap beyond March 2025 will be made as part of the Combined Authority’s budget and medium-term financial plan-setting process in early 2025.

Combined Authority Bus Improvements: Ongoing improvements to the regions bus services, linking to the Bus Strategy and Local Transport and Connectivity Plan goals, include:

• Tiger Pass: Over 30,000 young people have now applied for free passes offering  £1 single fares for under-25s.
• Concessionary Travel: Free all-day travel for eligible bus pass holders will be introduced in May 2025.
• New Routes and Protections: The Mayoral precept is funding 30 new or improved bus routes, many of which are now up and running, and safeguarding 23 previously withdrawn routes.
• Bus Franchising Consultation: The recently completed consultation will see the Mayor take a decision on whether to introduce franchising for greater local control in early 2025.

Read the report to the Extraordinary meeting of the Combined Authority Board https://democracy.cambridgeshirepeterborough-ca.gov.uk/ieListDocuments.aspx?CId=141&MId=576&Ver=4