The bus fare cap in England will be raised to £3 in the upcoming Budget, Prime Minister Sir Keir Starmer has announced.

It is an increase on the current limit of £2 which was introduced under the previous Conservative government to help with the cost of living.

The existing cap was due to expire at the end of December.

Sir Keir said: “I do know how much this matters, particularly in rural communities where there is heavy reliance on buses.”

The new £3 cap will run until the end of 2025.

There had been speculation in recent days that the chancellor would announce in the Budget on Wednesday that the current cap would be scrapped.

This would have meant that some passengers faced a steep hike in fares following two years of help.

Around 3.4 million people in England use buses. The Confederation of Passenger Transport said raising the cap from £2 has avoided travellers facing a “cliff edge” at the end of this year.

But it said: “An increase to £3 will still present challenges for many passengers, particularly those who rely on buses as their primary means of affordable travel.”

Greenpeace said it was a “‘tough decision’ the government didn’t need to make”.

“It makes no political, economical or environmental sense whatsoever,” said Paul Morozzo, Greenpeace’s UK’s senior transport campaigner.

He said buses are a “critical lifeline to millions of people, particularly those on lower incomes”.

“A government that was truly prioritising the needs of the poorest in society would rethink this decision at the first opportunity,” he said.

The Prime Minister has said video footage that has emerged of MP Mike Amesbury appearing to punch a man to the ground is “shocking”.

Mr Amesbury has been suspended from the party and had the Labour whip withdrawn after CCTV footage appeared on Sunday.

Sir Keir Starmer said the party had “moved very swiftly” to respond after the footage was published.

He added: “There is now a police investigation and in the circumstances you’ll appreciate there’s not much more I can say about that.”

Cheshire Police said a 55-year-old man had been voluntarily interviewed under caution in relation to the incident and had since been released pending further enquiries.

In footage obtained by the Daily Mail, the Runcorn and Helsby MP is apparently seen continuing to hit the man as he lies in the street.

Amesbury has been contacted for comment.

A different video, posted on X, purported to show Amesbury shouting and swearing at the man lying in the street in Frodsham, Cheshire.

The prime minister says “working people know exactly who they are” in a speech ahead of the Budget.

Speaking in the West Midlands, Sir Keir Starmer stressed that working people are the “golden thread” that runs through his government’s agenda.

On Wednesday, Chancellor Rachel Reeves will deliver Labour’s first Budget for 14 years.

The Budget will embrace the “harsh light of fiscal reality” but “better days are ahead”, Sir Keir Starmer will say in a speech ahead of Wednesday’s announcement.

The prime minister is expected to warn of “unprecedented” economic challenges but will say the government will “run towards them” as Labour prepares for its first Budget in almost 15 years.

The government is expected to announce a series of expected tax hikes, including a rise in the National Insurance (NICs) rate paid by employers which some claim breaks Labour’s manifesto pledge not to increase taxes for “working people”.

The Conservatives have accused Sir Keir of running a government of “broken promises”.

At a speech in the West Midlands on Monday, Sir Keir will argue that the country faces an “unprecedented” challenge of weak public finances alongside “crumbling public services”.

He will promise to face what he calls “the tough decisions”.

Speculation has been growing about the tax rises the chancellor will announce on Wednesday, with Rachel Reeves claiming there is a £22bn “hole” in the public finances left by the previous government.

Last week, Reeves signalled that businesses would face an increase in National Insurance, when she said Labour’s election pledge not to increase contributions on “working people” related to the staff element, as opposed to the sum paid by employers.

Other than National Insurance for employers, the freezing of income tax thresholds could be extended.

This means more people are “dragged” into paying tax or paying a higher rate and wages rise and cross the thresholds.

The government is also looking at increasing tax on asset sales, such as shares and property, as well as changing its own self-imposed rules on how its debts are measured in order to free up money for spending on infrastructure projects.

Footage has emerged of a Labour MP punching a man to the ground and then hitting him several more times.

A video published by the Mail shows Mike Amesbury, the MP for Runcorn and Helsby, hitting the man in the face and knocking him to the floor, before standing over him and aiming six more blows at his head.

The security camera footage also shows Amesbury shouting: “You won’t threaten me again, will you?”

Amesbury said in a statement on Saturday night: “Last night I was involved in an incident that took place after I felt threatened on the street following an evening with friends. This morning I contacted Cheshire police myself to report what happened during this incident.

“I will not be making further comment but will, of course, cooperate with any inquiries if required by Cheshire police.”

After an initial video showing the aftermath of the altercation was published on Saturday night, a Labour spokesperson said: “We are aware of an incident that took place last night. We understand that Mike Amesbury MP approached Cheshire police to report what happened this morning himself and that he will cooperate with any inquiries they have.”

The education secretary, Bridget Phillipson, refused to say on Sunday whether Amesbury would have the whip suspended while police investigated.

“Mike Amesbury is cooperating fully with the police,” she said. “He’s gone forward himself to the police, and it is right that the police now look into this matter, investigate and decide what action, if any, is required.”

Officials did not respond on Sunday after footage emerged of the incident.

Cheshire constabulary said in a statement: “At 2.48am on Saturday 26 October, police were called to reports of an assault in Frodsham. A caller reported he had been assaulted by a man in Main Street. Enquiries are ongoing.”

The footage shows Amesbury talking to the man at 2.15am in the Cheshire town of Frodsham. Shortly after the man looks away, Amesbury punches him with enough force to knock him to the ground, before standing over him and hitting him repeatedly as a third man tries to prise him away.

Amesbury was a shadow minister in the housing department before the election but was not given a government job after the party came to power. He won his seat with a majority of nearly 15,000 ahead of the second-placed party, Reform UK.