Commuters: Costs

On 5 December, the Government confirmed investment of over £3 billion for the rest of the Spending Review period to support local leaders and bus operators across the country to improve bus services for millions of passengers.

This includes funding to extend the £3 bus fare cap until March 2027, ensuring that millions of people can access affordable bus fares and better opportunities all over the country.

This investment also includes multi-year allocations for local authorities under the Local Authority Bus Grant (LABG) totalling nearly £700 million per year, ending the short-term approach to bus funding and giving councils the certainty they need to plan. Surrey County Council has been allocated £33.6 million for 2026/27 to 2028/29. Local authorities will have the flexibility to use this funding to meet local needs, which could include introducing local fares schemes to further reduce the cost of bus travel.

In respect of rail travel, the Chancellor and Transport Secretary have announced that regulated rail fares will be frozen for a year from March 2026, for the first time in 30 years. Over a billion journeys are going to be affected by this freeze with season tickets, anytime returns on commuter routes, and off-peak returns on longer-distance routes all subject to the freeze. Commuters in the Surrey Heath constituency could save over £200 on season tickets into London.