Andy Burnham's government has abandoned its commitment to end the freeze on income tax thresholds, instead directing £450 million in borrowed funds toward implementing a £2 cap on bus fares across England from January 2027. The shift represents a recalibration of fiscal priorities, with the administration opting to prioritize transport affordability over adjusting the income tax band thresholds that have been static since 2021.

The policy reversal has drawn criticism from opposition commentators who frame it as another retreat from Labour campaign commitments. The decision leaves millions of additional workers facing bracket creep as inflation gradually pulls wages into higher tax bands, whilst the government dedicates resources to the bus fare subsidy scheme instead.