One of the routes that would have been most affected by scrapping the policy would have included ‘England’s most scenic’ 840 Coastliner bus service which runs from Leeds to Whitby.
Prime Minister Keir Starmer confirmed the move amid warnings about “catastrophic consequences” for routes in North Yorkshire if the cap had been axed completely.
Cllr Keane Duncan, the executive member for highways and transport on North Yorkshire Council, said the decision felt like “penny-pinching from rural areas when the major cities have seen billions invested in transport there”.
He said: “Keir Starmer has given in, but only after pleas from rural communities like ours not to scrap the cap. It’s wrong that we have had to fight so hard to save an initiative that is particularly essential for bus services in communities like ours.
“The small saving this will generate means the decisions feels like penny pinching from rural areas, when the major cities have seen billions invested in transport there.
“And while the cap will continue, it will increase by 50%, another hit on working people. The additional cost for a typical worker commuting daily will be around £500.
“There are also fears for the future of the cap after next year. We’re facing another increase or even the cap being scrapped altogether.
“We’ve worked so hard to protect routes across North Yorkshire, with the £2 fare cap serving as a critical lifeline. We must continue to fight against decisions that could harm passenger numbers and once again put services in peril.”
Since the introduction of the cap, passenger numbers in North Yorkshire have grown steadily, with an average 10% uplift in 2023 and 14% so far in 2024.
The 840 was one of those under threat, but operator Transdev reported “impressive increases” in passenger numbers that ultimately saved the service.
Alison Hume, MP for Scarborough and Whitby, said: “I’m pleased that the Government is continuing to support lower bus fares.
“The Conservatives left this decision unfunded beyond 2024 and given the awful economic crisis they left behind there were fears about finding the money to fund a further subsidy.
“I was worried that without this Government support, fares could have been hiked overnight.”
The Labour MP said: “Rural and coastal communities like ours in Scarborough and Whitby rely on our buses, and although we’ve got a long way to go to improve bus services to acceptable standards, this decision will at least prevent services being deregistered.”
However, Ms Hume, admitted that “the increase to £3 is not exactly great news for passengers on lower incomes” but said that “faced with the extremely poor fiscal situation we inherited, this decision avoids fares rising dramatically at the end of the year.”
More than 60,000 people have signed a petition on the 38 Degrees platform to “keep the cap on bus fares” at £2 which had been “a lifeline to people who rely on buses to get about, and those of us who want to use more public transport to help the environment”.
The details of the 2024 autumn Budget will be announced by Rachel Reeves in a speech to the House of Commons on October 30.
