A year-long £2 bus fare cap pilot across one regional transport partnership area in Scotland during 2026 has moved ahead after the amendment to the 2025-26 Scottish Budget that will introduce it was agreed by the Finance and Public Administration Committee on 18 February.
That represented conclusion stage two scrutiny of the Budget (Scotland) (No. 4) Bill. The third and final stage will come in a debate and vote on 25 February. It is thought certain to pass.
In a letter sent by Cabinet Secretary for Finance and Local Government Shona Robison to Committee Convener Kenneth Gibson on 28 January, it was noted that the £2 bus fare cap pilot in Scotland will account for £3 million in the 2025-26 budget “for the establishment and operation of the scheme.”
Overall, £10 million will be allocated to the cap across 2026. Its introduction to the 2025-26 Budget follows agreement between the Scottish Government and members of the Scottish Greens for support via the inclusion of a set of amendments. Elected representatives from other parties have aired support for the pilot.
Developing a proposal for what was termed a “bus flat fares pilot for an area-based scheme” was an action contained within the Fair Fares Review published by Scottish Government executive agency Transport Scotland in March 2024.
Such a step is built around aspirations for climate action and a recognition that public transport fares “may be a barrier for some.” Rationale behind the pilot as laid down in the Review is “to increase competitiveness of bus and attract model shift from car.”
On 6 February, Minister for Agriculture and Connectivity Jim Fairlie told the Scottish Parliament that development of the fare cap pilot is “at the early stages” but that the Scottish Government is “committed to delivering it on time” from 1 January 2026.
Work on the proposals will continue this year. Part of that will be dialogue with parties including bus operators and local transport authorities. That will see criteria developed for the pilot location among the seven regional transport partnerships in Scotland.
Introduction of a £2 bus fare cap in England led to an approximately 5% rise in patronage across that scheme’s first 10 months of operation, a recent report by the Department for Transport concluded.
