Andy Burnham’s bus cap plans in chaos after minister admits they haven’t been costed

The PM has trumpeted a new cost-of-living measure to cap single bus fares across England at £2 from January

Andy Burnham’s bus cap plans have descended into chaos after a minister admitted they have not been fully costed.

The PM has trumpeted a new cost-of-living measure to cap single bus fares across England at £2 from January.

But Transport Secretary Heidi Alexander said the “detail” of where the £454m funding will come from “hasn’t been worked through” yet.

The bus cap, which is currently £3 for a single fare, will partly be funded by switching grants for international climate projects to repayable loans instead.

But this raises the prospect that the Government will need to borrow the money to lend without any real returns.

Ms Alexander said: “The detail will need to be worked out.

“We wanted to make the announcement today.”

Her comments come a day after Mr Burnham told his new cabinet that all policies must be fully costed.

Mr Burnham said: “Always we will show how we are going to pay for it, what we are reprioritising.

“That will be a theme that we will always come back to.”

Announcing the policy in Bath, he said the bus cap would “really help people with the cost-of-living pressures they’re facing”.

He added: “It’s there for the whole of 2027, and I think it will put money in people’s pockets.”

Shadow transport secretary Richard Holden warned that “borrowing or taxes will have to rise to pay for their pledges”.

TUC general secretary Paul Nowak said: “Capping bus fares is a good start and means working people can get around for cheaper.

“That’s good for households, businesses and local economies.”

Transport and travel union TSSA called the bus cap a “step in the right direction” to ensure public transport is affordable.

But Friends of the Earth said switching climate finance grants to loans to cover the cost of the plan was “nothing short of a travesty”.

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