Andy Burnham has made a quick start to life in Downing Street, with two motoring policies already confirmed
Andy Burnham has already annonced two motoring rule changes (Image: Getty)
Andy Burnham will oversee two rule changes which could see a £68 update to bills within a matter of months. The new Prime Minister has confirmed updates to VAT rates for domestic electricity prices from October, which will have a knock-on effect for electric cars.
Bus tickets will also be capped from January, with passengers set to save a third every time they step on. Once the new rules have been implemented, road users will feel the benefit of discounts, reducing the cost of travel.
VAT rates have been cut on domestic electricity in a boost to EVs (Image: Getty)
Mr Burnham’s first move was to axe VAT on domestic electricity supplies, cutting costs from 5% to 0%. Electric car experts have revealed the decision will reduce bills for EV owners topping up their vehicle at home.
David Martell, boss of home charger company Andersen EV, stressed motorists could save around £25 per year, with higher-mileage drivers saving as much as £40.
David said: “For the average EV driver charging at home, the saving on charging alone is likely to be around £20–£25 per year. For higher-mileage drivers, it could be closer to £35–£40.”
Bus tickets will be capped at just £2 per journey from January 1, a prediction on the current £3 limit. According to the Department for Transport, those in England made an average of 41 local bus trips per person per year in 2024, with 28 of these outside the capital.
With Mr Burnham’s new £2 fare only in use outside of London, the average English bus user could expect to save £28 per year under his new plan. Adding up the average VAT savings and bus reductions means that some individuals taking advantage of both discounts could cut their annual bills by as much as £68 a year.
Bus tickets will be capped at just £2 from January (Image: Getty)
The news will be a massive boost for cash-strapped road and bus users battling with the cost of living.
Announcing the bus fare discounts, PM Andy Burnham said: “Good, affordable transport links are an essential. No one should be priced out of those and left behind.
“But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country.
“Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living.”
