Budget: Portsmouth council bemoans "hugely disappointing" bus fare cap hike amid cost of living crisis

Prime minister Sir Keir Starmer announced on Tuesday that the cap on single bus fares, which previously limited tickets to under £2, will increase to £3. This was reaffirmed by Chancellor Rachel Reeves in the October Budget outlined in parliament yesterday (October 30) - considered necessary due to a £22bn “black hole” in public finances.

Councillor Steve Pitt, leader of Portsmouth City Council (PCC), criticised the decision, stating: “There was a real opportunity for the government to not allow it to go as far as £3; I think £2.50 would have psychologically kept everyone on board. The cheaper fares have driven up our bus use—going to £3 potentially jeopardises that, so it’s hugely disappointing.”

When asked if the fare increase might impact bus use across the city, he added: “It could do, it would be a great shame because there’s a huge amount of effort gone into making sure we’ve had the largest increase in bus usage.”

Councillor Peter Candlish, the council’s cabinet member for transport, warned this fare increase could make travel more difficult for residents and slow the city’s positive trend in bus use. Last week, Portsmouth and Southampton City Councils jointly wrote to the government, requesting that the £2 fare cap be extended beyond its current end date of December 31, 2024.

“Our councils have been investing in public transport and working with bus operators to ensure that more people are using the bus,” Cllr Candlish said. “Alongside our other initiatives, the £2 single fare has played a crucial role in recovery in bus usage, making buses more affordable and accessible.”

Cllr Candlish also highlighted Portsmouth’s progress in increasing public transport use, noting that the city has seen a 20 per cent rise in bus ridership in the past year, the highest recovery rate in the UK since the pandemic. This was revealed in Department for Transport data released in February. “While we welcome the continuation of the scheme overall, it would be more beneficial for all our residents if the £2 fare cap was extended further,” he said.

The council is particularly concerned that the fare cap increase will place an extra financial burden on local residents, especially those with limited incomes. “This will make it more expensive for Portsmouth’s bus users to travel around the area, especially as many of the single fares locally are lower than £3, so residents will see a reduced benefit of the £3 capped fare,” said Cllr Candlish.

The Liberal Democrat councillor for Eastney and Craneswater added that buses are vital for residents, particularly for work, medical appointments, shopping, and leisure. First Bus, which operates in Portsmouth, Fareham, and Gosport, expressed relief that the Government had not removed the cap altogether, saying it is “pleased” with the decision. “Avoiding a sudden change is important to help those customers using longer routes,” it said.

When asked if First Bus had considered discounts or support programmes for those most affected, the company responded: “We’re still waiting for the full details in tomorrow’s budget, but in the longer term, Government should consider continuing fare support to help those who need it the most. We believe fare support should be targeted at young people to support lifelong bus use. By focusing Government support in this way, it would help those on lower incomes to access education and employment, and encourage the bus users of the future.”

A spokesperson for Stagecoach, another city bus operator, added: “We acknowledge the Government’s announcement of a new £3 bus fare cap and welcome the clarity it provides. We look forward to working with the Government to understand the details of the new scheme in the coming days and weeks. Our goal remains to provide reliable and affordable transport options that benefit our communities.”