A £2.50 cap on the cost of a bus journey in the North East will become “untenable” unless the government commits to longer term backing to keep fares down.
The Government currently funds a national £3 cap on bus fares, scheduled to run until the end of March 2027, by paying a subsidy to reimburse public transport operators.
In our region, mayor Kim McGuinness has gone further by using her public funds to cover a further 50p reduction; setting the maximum single fare rate at £2.50 across Northumberland, Tyne and Wear, and County Durham.
The Labour politician has now called on ministers to promise they will extend their national commitment.
She is warning that a failure to do so would jeopardise her own ‘Mayor’s Fares’ initiative, as substantial extra local funds would be needed to meet the added financial burden if the Department for Transport’s (DfT) subsidy was withdrawn, and risk a price hike.
The mayor’s bus subsidy is expected to cost £32 million for 2026/27, also taking into account the £7.50 regional Day Rover ticket and a £1 per journey cap for under 21s, and is paid for from the wider funding settlement given to the North East mayoral authority by the Government.
Her £2.50 price cap has also been mirrored on the Tyne and Wear Metro, frozen until April next year.
McGuinness comment
“We must see government extend the cap if we’re to keep our fares as affordable as possible, that’s why I’ve been telling ministers loud and clear we can’t see price hikes. Rising costs are already making life difficult for our communities, without adding another one.
“If ministers don’t extend the cap, we risk fare increases, it’s as simple as that. I want to see our £2.50 adult and £1 young person Mayor’s Fares stay in place because I know they’re making a difference right across the region. That’s why I’ll fight to keep costs low and will be doing everything I can to ensure government makes the right decision.”
A report due to be presented to the mayor’s cabinet next week adds that continuing the £2.50 cap without extended national help would be “untenable” and that the level of local subsidy required to keep it at the current rate is already expected to increase due to the impact of fuel price inflation.
The DfT was contacted for a response.
