The Labour government has been slammed over the bus price cap increase in Reading, which means passengers will have to pay over £1 more for their daily journeys.
A cap on a single bus ticket of £2 was introduced by the previous Conservative government from January 2023 to December 2024, with the cap being increased by the Labour government to £3 this January.
The £3 fare cap will last until January 2026.
Reading Buses, which is owned by Reading Borough Council, has increased fares, with singles going up by 10p and increases for return fares.
However, concern has been raised that Reading Buses is losing hundreds of thousands of pounds due to the government’s increase of employer national insurance contributions.
Rob White, the leader of the opposition on the council, asked whether it was right to increase bus fares when passengers are facing financial difficulties.
Councillor White said: “This Labour government has also increased National Insurance contributions for Reading Buses, increasing costs by hundreds of thousands of pounds.
“The Labour government removing funding that was covering the bus fare discount and at the same time increasing national insurance contributions has left the bus company forced to put up fares to try to recover millions of pounds in lost money.
“Does the lead councillor agree that it is right to increase the cost of bus travel for Reading residents way beyond inflation in a cost-of-living crisis?”
The question was addressed to John Ennis, the lead councillor for climate strategy and transport.
Cllr Ennis (Labour, Southcote) clarified that the cap was never intended to be permanent due to the cost of the subsidy.
Government funding awarded in 2022 allowed the council to introduce an Reading All-Bus ticket provided by a series of operators.
Cllr Ennis explained: “The initial discounted rate of £3.50 on the bus, or £3.40 via app, allowed all day bus travel in Reading and for the first time, the same ticket was able to be used on services provided by different operators.
“Since its introduction, the Reading All-Bus ticket has saved passengers around £5 million in fares.
“The Reading All-Bus ticket will now cost £4.90 via app or £5.40 if purchased on the bus.
“Whilst this is an increase, it is important to note that operators are also offering their own products and Reading Buses offers a ‘simply Reading Adult 1 Day ticket’ for £4.50, which can be used on any Reading Buses service in the simply Reading area.
“This is the same price as the equivalent ticket was in 2022.”
Cllr White was not satisfied with the answer. He said: “I didn’t hear a yes or no answer from cllr Ennis, so I assume that he’s fine with that.”
Replying, cllr Ennis said: “Reading Buses services are some of the cheapest bus services in the country.
“The only party that is committed to active travel and proper, increased bus services is the Reading Labour Party.”
The exchange took place at a policy committee meeting on Monday, June 9.