Transport secretary ‘100% sure’ new cap on bus fares in England is fully funded – UK politics live | Politics
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We have further comments from the transport secretary Heidi Alexander who appeared in the media this morning answering questions about the new £2 bus fare cap.
The government said this morning that the cap will be financed by reprioritising the energy budget, with money that would have been given mainly as grants to third countries for climate projects now as a loan that must be repaid.
When asked for more details by Sky News, Alexander said they would do so. “needs to be resolved”.
He also said he was unsure whether developing countries would have to pay interest to Britain on loans.
Andy Burnham’s new government faces questions over funding after announcing £2 bus fare cap in England
Good morning and welcome to our live coverage of UK politics.
Andy Burnham Following the Prime Minister’s announcement, the new government faces new questions about how it will finance its new policies aimed at easing the cost of living. There is a £2 cap on single bus fare this morning.
The cap on single bus fares in England will come into force from January, reducing the current cap by £3. The government said the measure was backed by a £454m fund, including money to allow devolved governments to take similar action. Around £400 million of this funding will come from shifting investments in international climate finance into loans, with the remainder coming from savings in the Department for Energy Security and the Net Zero budget.
Following yesterday’s announcement Discount on VAT on home electricity bills From October 1, the government has said it will be funded by the cancellation of the digital ID scheme. But former cabinet minister Darren Jones He suggested that the plan was “unfunded” and the government said “He will have to determine how he will pay for his new policies from the budget.”
When the Minister of Transport asked this question about the bus fare cap Heidi Alexander he said it was “100% sure” The government said the new policy was fully funded. “Re-prioritisation of spending”.
“The Prime Minister made it clear that we will comply with the fiscal rules and “You will not receive any unfunded spending commitments from this government.” He told BBC Radio 4’s Today programme.
He also insisted the VAT cut on local electricity bills had been properly funded, telling BBC Breakfast that “it’s not right to say the money isn’t there to implement changes to electricity bills”.
He criticized Jones, who was deposed as the Duchy of Lancaster, for questioning how new government policies would be funded on social media, telling Sky News he was “not sure this was the most timely or clever tweet Darren has ever made.”
Conservative shadow chancellor Mel Step He said the government could not answer the question: “Where does the money come from?” Speaking to BBC Breakfast, he said there was no money to be saved from canceling the digital identity scheme because “It was never funded in the first place.”
