Hidden ‘1p tax’ will cost workers £448 a YEAR in commutes, analysis finds – as Reeves ‘clobbers’ hard-up Brits

COMMUTERS will be hit by a “bus tax” that is as costly as a 1p rise in income tax, new analysis shows.

It reveals a typical bus user will have to fork out an extra £448 a year as a result of the Government’s decision to scrap the £2 fare cap.

Keith Douglas

It will be replaced by a new £3 limit at the end of the December. 

The data – compiled by the Lib Dems – highlights how the hike will squeeze regular bus users, equivalent to a £5,420 tax bill on a median salary of £37,430. 

Lib Dem environment spokesperson Tim Farron blasted the move, saying: “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.”

The existing cap, introduced under the previous Tory government to help with the cost of living, has kept fares down for millions of passengers.

But Sir Keir Starmer last week stressed the cash for the £2 cap will dry up by the end of 2024. 

He told a audience in Birmingham: “On the £2 bus fare, first thing to say is the Tories only funded that until the end of 2024 and therefore that is the end of the funding in relation to a £2 capped fare.

“I do know how much this matters, particularly in rural communities where there’s heavy reliance on buses.

“And that’s why I’m able to say to you this morning that in the Budget we will announce there will be a £3 cap on busfares to the end of 2025 because I know how important it is.”

A Government source said keeping fares capped was “hard fought for in the Budget” but that Department for Transport analysis found the £2 cap â€œunsustainable for taxpayers” and offering “poor value for money.”