UK PM Burnham Plans Lower Bus Fare Cap and Energy Tax Cut

According to Lianhe Zaobao citing Reuters, British Prime Minister Burnham said on Wednesday (July 22) he will cut single bus fares by as much as one-third as part of measures to ease cost-of-living pressure. He said on Monday (July 20) that the government will abolish a tax on household electricity bills from October 1, saving each household about GBP 45 a year. The bus fare cap will also be reduced from GBP 3 to GBP 2, effective in January next year. Burnham said the measures are intended to give people more “breathing space,” but added that the government has not yet committed to raising taxes. He said tax policy will be decided in the budget, and that the government will first try to reorder spending priorities to focus on cost-of-living issues. The UK government said lowering the bus fare cap will cost more than GBP 500 million, with GBP 100 million coming from the existing transport budget and GBP 400 million from the Department for Energy Security and Net Zero, funded by converting grants for international climate projects into loans. The fare cap policy will apply outside London, which has its own public transport fare system.