Bus Users UK has welcomed the new road-user charging for electric car users outlined in the Budget yesterday, but fears the impact on bus operating costs of others of the Chancellor’s measures.
The new levy of up to 3p per mile, which is set to be brought in in April 2028, could ease congestion and improve bus journey times, says the charity.
However, it adds that revenue for the new scheme should be directed into bus services rather than absorbed into wider travel budgets.
While saying the increase in the National Living Wage will offer relief to many households, Bus Users UK warns it could place extra pressure on bus operators and lead to costs being passed on to passengers.
The employer National Insurance increase which took effect in April is another Treasury move which could harm an industry where labour accounts for more than half of operating costs, it adds.
The continuation of the fuel duty freeze offers “short-term relief”, says Bus Users UK, which believes the government should exempt coach and bus services when such duty rises in line with inflation from April 2027.
Another warning was issued over the £2 billion of support for the transition to battery-electric vehicles, which the campaigning group says could harm modal shift to public transport.
Noting investment in major infrastructure projects such as the Lower Thames Crossing and extension of the Docklands Light Railway, Bus Users UK also calls for stable and long-term support for bus services.
Lydia Horbury, Chief Executive of Bus Users UK, says: “This year’s Budget seeks to ease the cost of living for workers while increasing the financial pressures on essential bus services that enable those same people to travel to work, education, healthcare and daily life.
“As the most accessible form of public transport, buses are indispensable to disabled people, older and younger passengers, families and those with mobility needs who would otherwise be cut off from essential services.
“These passengers must not be side-lined in a Budget that places such significant emphasis on drivers and rail users.
“A single double-decker bus has the capacity to remove up to 75 cars from the road, delivering immediate improvements in congestion, air quality and journey reliability.
“If the government is serious about creating a cleaner, fairer and more inclusive transport system, it must provide stable, long-term support for bus services. Without this, the people who rely on the most widely used public transport mode will continue to bear the greatest cost.”
The comments echo the response of the Confederation of Passenger Transport, which yesterday welcomed the new per-mile electric vehicles levy and highlighted the potential of intensified cost pressures.
