Bus fare cap will rise to £3 in Budget, says PM

THE £2 bus fare cap will be replaced by a new £3 cap until the end of 2025 at this week's Budget, the Prime Minister has confirmed.

Sir Keir announced the change during a speech in Birmingham, in which he also defended looming tax rises and confirmed millions in funding for local services to help get people back to work.

The bus fare increase will be part of Chancellor Rachel Reeves' first Budget tomorrow, as the Government tries to bridge what it has called a £22 billion "black hole" in the public finances, but has already been labelled a "bus tax" by one opposition party.