Analysis reveals ‘bus tax’ equates to 1p income tax hike for commuters

4 Nov 2024

EMBARGO: Immediate Release

New analysis from the Liberal Democrats has shown that the average bus commuter would effectively face a 1p income tax hike due to the Government’s changes to bus tickets from £2 to £3.

The analysis shows that the average commuter who takes the bus every working day of the week would face an extra £448 bill because of the change made by the government.

That is the equivalent of paying £5,420 in income tax a year, 9% higher than the £4,972 a median earner on £37,430 a year would pay.

The Liberal Democrats are calling for the rise to be reversed and the £2 bus cap to remain in place to protect rural communities and bus commuters from suffering more financial pain after years of “economic vandalism" under the Conservatives.

Liberal Democrat Environment spokesperson Tim Farron MP said:

“The government’s bus tax will clobber people across the country, especially those in rural areas and on low incomes. It is the last thing these people need after years of the Conservatives' economic vandalism.

"Keir Starmer’s decision is totally flawed. It makes travelling more expensive for working people and will make congestion worse across the country.

“While the new government faces tough decisions, it is unfair to place the burden of fixing the Conservatives’ mistakes on bus users and commuters."

ENDS

Notes to Editors:

First reported by the Sun here.

5 (days a week someone works) x 52 (weeks in a year) = 260
28 (days holiday a salaried person working 5 days a week gets a year) + 8 (number of bank holidays in 2024) = 36
260 - 36 = 224 (number of days someone works a year)
224 x £2 (increased cost of bus cap rise to £3 per day someone works for journey to work and back) = £448
The median earner earns £37,430 per year which incurs £4,972 of income tax. Source.
£4,972 + £448 = £5,420
‘Bus tax’ is equivalent to this person seeing a 9.01046% increase in their income tax.
This is equivalent to a 1.2p rise in income tax for ‘a typical person who uses a bus to work’ due to the ‘bus tax’. Source.