London, United Kingdom. Britain’s new Prime Minister Andy Burnham said on Wednesday that his government would cap single bus fares at £2 from January, cutting some ticket prices by up to a third as part of efforts to address the cost-of-living crisis.
The measure follows the government’s announcement that it will remove value-added tax from domestic electricity bills from October 1.
Bus fare cap funding
Downing Street said the bus fare cap would be supported by £454 million in additional funding, financed by reprioritising spending within the budget of the Department for Energy Security and Net Zero.
“As I said on my first day in office — I will build a country for everyone, everywhere. That means more connected communities, better access to opportunities, and a lighter load on people’s lives,” Burnham said in a statement.
Electricity bill tax cut
The government said on Tuesday that removing VAT from domestic electricity bills would reduce the average annual household bill by about £45. Average annual household electricity bills are around £1,862.
Burnham said he would announce further early policy measures, telling reporters on Monday that he wanted his new government “to do some things that people will feel and feel quite quickly”, particularly for those on the lowest incomes.
