Bluestar has welcomed the government’s announcement that will see the £3 bus fare cap until at least March 2027.

Chancellor Rachel Reeves made the announcement as part of the government’s spending review on Wednesday afternoon, as she addressed MPs in parliament.

The conservative government introduced a £2 cap on bus fares in 2023, before the labour government originally extended the cap in October 2024 to the end of 2025, increasing it to £3.

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Reacting to the news, a spokesperson for Bluestar said: “We welcome this announcement, which supports our drive to encourage more people to travel by bus across the region, helping to reduce congestion and improve air quality.

“We are awaiting full details from the government on the funding for the £3 fare cap here in Southampton and will give further information in due course.”

Bluestar has been the sole bus operator in Southampton since February 2023, after First Bus ceased all City Red services.