Bus fare hike same as 1p income tax rise on working people who commute - new analysis

New analysis suggests that the 50 per cent rise in a single bus ticket from £2 to £3 is the equivalent of a 1p income tax hike for working people who rely on public transport to get to work.

The figures published by the Lib Dems appear to be a direct challenge to chancellor Rachel Reeves’s claims that she was protecting “working people” in her Budget last week.

The claims are the latest stage in an ongoing row over who working people are after Labour refused to provide a clear definition of the term but applied it to freezing the main taxes of income tax, VAT and national insurance.

The Lib Dems are calling for the 50 per cent increase to be reversed and say their analysis shows that the average commuter who takes the bus every working day of the week would face an extra £448 bill because of the change made by the government.

That is the equivalent of paying 9 per cent more than the £4,972 income tax a median earner on £37,430 a year would pay, thus behaving like a tax rise.

Environment spokesperson Tim Farron MP said: “The government’s bus tax will clobber people across the country, especially those in rural areas and on low incomes. It is the last thing these people need after years of the Conservatives' economic vandalism.

"Keir Starmer’s decision is totally flawed. It makes travelling more expensive for working people and will make congestion worse across the country.

“While the new government faces tough decisions, it is unfair to place the burden of fixing the Conservatives’ mistakes on bus users and commuters."

However, the Department for Transport have disputed the figures and pointed out that funding for the previous £2 cap was only funded until the end of this year. They have blamed a £22 billion black hole they claim was left by the previous Tory government in the public finances.

Previously, The Independent revealed that it was only a last-minute effort by transport secretary Louise Haigh which got a £3 cap agreed with some tickets likely to rise 650 per cent to £15.

A Department for Transport spokesperson said: "We do not recognise these statistics. The previous fare cap was due to expire at the end of 2024, with fares set to soar by as much as £13 on the most expensive routes, unless we intervened to keep fares down.

“Fares will only be allowed to increase with inflation in the normal way, and the £3 bus fare cap will lead to savings of up to 80% on some routes, keeping bus tickets affordable across the country.”