North East Mayor Warns £2.50 Bus Fare Cap Depends on Future Government Support

North East Mayor Kim McGuinness has warned that the region's £2.50 bus fare cap may not be sustainable unless ministers extend national funding support beyond its current deadline.

The Government is currently funding a national £3 cap on single bus fares, with the scheme due to run until the end of March 2027. Operators are reimbursed through a subsidy arrangement designed to keep fares lower for passengers.

In the North East, the mayoral authority has gone further by using local public funding to reduce the maximum adult single fare by an additional 50p. This means passengers across Northumberland, Tyne and Wear and County Durham currently pay no more than £2.50 for a single bus journey.

McGuinness has urged the Department for Transport to provide longer-term certainty over national fare support, warning that the withdrawal of the Government subsidy could place significant pressure on local budgets and lead to fare increases.

The North East's wider fares package includes the £2.50 adult single fare cap, a £1 fare for under-21s and a £7.50 regional Day Rover ticket. The package is expected to cost around £32 million in 2026/27 and is funded through the settlement provided to the North East Mayoral Strategic Authority.

The £2.50 fare cap has also been mirrored on the Tyne and Wear Metro, where prices are frozen until April next year.

McGuinness said keeping fares affordable was vital at a time when households are already facing rising costs. She said she would continue pressing ministers to avoid fare rises and to protect the Mayor's Fares scheme, which she said is benefiting communities across the region.

A report due to be considered by the mayor's cabinet warns that maintaining the £2.50 cap without continued national support would become "untenable". It also notes that the level of local subsidy required is expected to rise, partly because of inflationary pressure on fuel costs.

The mayor has argued that if the Government does not extend its national cap beyond March 2027, the North East could face a difficult choice between increasing fares or diverting substantially more local funding to maintain current prices.

A Department for Transport spokesperson said the Government is providing more than £100 million to the North East Mayoral Strategic Authority to support local bus services, including lower fares and new routes.

The department added that the £3 national fare cap remains in place until March 2027 and that options for future fare support are being actively considered.

The warning highlights wider uncertainty over the future of bus fare support across England, as mayoral authorities and local transport bodies seek longer-term funding commitments to keep public transport affordable and encourage more people to use buses.