Bus fare cap coming from aid budget will hit world’s poorest, Burnham told
Summary
Prime Minister Andy Burnham announced a new bus fare cap in England, lowering fares to £2 per journey next year. This will be paid for by changing some international climate aid donations into loans, allowing the government to borrow more money but raising concerns about the impact on poor countries.Key Facts
- The bus fare cap will drop from £3 to £2 per journey in England starting next year.
- The funding for this comes mostly from switching international climate donations into repayable loans.
- This change allows the government to borrow more money without breaking borrowing rules.
- Experts warn that making climate finance loans instead of grants could increase debt for vulnerable countries.
- The switch may reduce money available to the poorest countries, impacting their public services like health and education.
- Critics say this strategy might harm the UK’s reputation as a global partner and could increase instability abroad.
- The bus fare cap plan is part of Prime Minister Burnham’s efforts to ease the UK’s cost of living crisis.
- The move is expected to cost over £500 million next year, with £400 million funded by changes to international aid.
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