Bus passengers will be protected from fare hikes as the £3 cap on single tickets is set to be extended.

In a major boost for bus users, Chancellor is expected to protect the nationwide price cap on single trips, which had been due to run out at the end of the year. The cost-of-living lifeline will now be in place across England until March 2027, the understands.

Single fares could rise by up to £12 in the worst hit areas if the cap is lifted. The Department for Transport previously said a journey between Leeds and Scarborough could cost £15, while a fare from Hull to York would hit £8.50.

The decision, which will be confirmed in the Spending Review on Wednesday, is a major boost to millions of Brits who rely on buses every day.

A Treasury source told the Mirror: “We understand the cost of living is a priority for the British people. That is why we are investing in Britain’s renewal to make working people better off.

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“That’s why we’re keeping bus fares down by extending the £3 cap to put more money in people’s pockets.”

The cap covers around 5,000 bus routes across England, costing the Treasury around £150million a year to keep fares at £3.

The Tories previously introduced a £2 cap on bus fares but only provided funding until the end of 2024. Last year, said it would rise to £3 for 2025 but the future of the policy was uncertain beyond the end of this year.

A Government source said: "Buses provide lifeline access to opportunity for people across the country.

"Keeping fares affordable is a top priority for the Transport Secretary, as our landmark Buses Bill overhauls how services are delivered. Better buses are around the corner with ."

The Chancellor will unveil plans to splash tens of billions of pounds on public services such as the , defence and schools over the next three years in the long-awaited Spending Review on Wednesday.

But other departments are expected to feel the squeeze, with cuts looming to unprotected areas such as local government and the Home Office.

Ministers have been locked in fraught negotiations for months over their budgets. The final settlement for the Home Office was only signed off on Monday after a row with Home Secretary Yvette Cooper over cash for policing.

Ms Reeves will also announce funding for infrastructure investment, including big ticket items like road, rail and energy projects. She will confirm changes to Treasury rules to make it easier to pour cash into projects outside of London and the South East.

It comes after a blitz of announcements, including some £15.6 billion of spending on public transport in England's city regions, and £16.7 billion for nuclear power projects, the bulk of which will fund the new Sizewell C plant in Suffolk.

Ms Reeves also confirmed on Monday that some 9 million pensioners would be eligible for the winter fuel allowance this year after backtracking on the unpopular decision to strip the benefit from all but the poorest pensioners.

The Government also announced plans to expand free school meals eligibility to another 500,000 children whose families get , in a major win for the Mirror's campaign to end hunger in classrooms.

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