Andy Burnham slashes bus fares to £2 across England as new PM makes ‘breathing room’ pledge to hard-up voters

BUS fares will be capped at £2 across England from next year, Andy Burnham will announce. The new PM will lower the current £3 ceiling as part of a cost of living package to give the public more “breathing room”. As Manchester Mayor he capped fares on his flagship Bee Network to £2 for a single adult fare. The cap was first brought in nationally at £2 by the Tory government in 2023 but was then raised to £3 in 2024. The new cap will come in from January. Mr Burnham has vowed to take “immediate” action to lighten the load on hard-up families before setting out real action at the autumn Budget. Read More on Burnham He has admitted his first measures “won’t solve everything” but would be a start on the cost of living. On Monday, he told his Cabinet that they needed to be a “cost of living government” as he set out his priorities. As part of his cost-cutting initiative, he has also pledged to slash taxes on electricity bills from October. With VAT expected to be taken off electricity bills, UK households would see £45 off their annual price cap. Most read in The Sun Reducing the tax from 5 per cent to 0 per cent is another move by Mr Burnham to help bring down inflation. He has said that the policy, costing £850million in 2026/27, will be paid off by cancelling the Digital ID cards scheme. Chancellor of the Exchequer John Healey MP said: “For too long, too many people have struggled with the cost of living. “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter. “This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.” But according to Starmer ally, Darren Jones, the Digital ID programme was “unfunded”. Just after leaving Downing Street from his position as Chief Secretary to the Prime Minister, Mr Jones posted online saying: “Good news that VAT will be cut on electricity bills. “It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower. “But the DigitalID program was unfunded. “The government will have to set out how it will pay for its new policies at the budget.” It was not clear where the money to fund the Digital ID programme would come from In the Office for Budget Responsibility’s Economic and Fiscal Outlook from November last year. ANALYSIS: The clock is already ticking for the man with no plan by Ryan Sabey, Deputy Political Editor ANDY Burnham isn’t wasting any time showing the British people he is on their side as they battle the cost-of-living. The new Prime Minister was quick out of the blocks outside Downing Street to offer the public some “breathing space” as they grapple with rising bills. He has been accused of being all about ‘vibes’ but there may be finally be a bit of meat on the bones when it comes to policy. Speculation has been rife that there may be help coming on bus fares, energy bills and also a change in tax rules to give people a bit more cash in their pockets. The move is in sheer contrast to when Sir Keir Starmer came to office just over two years ago. Within weeks, the out-going PM told millions of pensioners that they were going to lose out on their winter fuel payments. Mr Burnham used his showcase moment – minutes after leaving Buckingham Palace to meet the King – wants to show that he is on their side as he says he will give the people “his all”. Voters will only have to wait 24 hours until he offers some help and explains how it will be paid for. It was the first time for many years that an incoming Prime Minister delivered his speech without notes in front of dozens of supporters. Close aides and the Labour faithful created a party atmosphere in the country’s most famous streets. But convincing the public out in the country and driving up their living standards will take more than just warm words. He was at pains to point out to the British people when they say politicians haven’t been on their side. The PM will offer a “circuit breaker” to what has come before with more power devolved to the regions. But anyone thinking that a big, bold radical plan for the country will be enacted today they must think again. A ten-year plan for the country won’t come until later this year. Time will only tell how much of that decade Mr Burnham will preside over. The true test will be whether feel better off in their pockets and time is short. The clock is already ticking.