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Nottingham tram operator 'disappointed' as trams appear excluded from new £2 fare cap

Nottingham’s tram operator has warned it would be a setback for passengers if light rail is not included in the government’s new £2 cap on fares for 2027, as questions remain over whether trams will benefit from the policy.

Nottingham tram operator 'disappointed' as trams appear excluded from new £2 fare cap
©Illustration AI Charlotte Wentworth / nexoradar.com

The operator of Nottingham's tram network has expressed disappointment after an announcement by the government set out a new £2 cap on bus fares for 2027 but did not explicitly include light rail services.

Tram operator says inclusion is unclear

NET, which runs Nottingham Express Transit, welcomed the principle of making public transport more affordable but said it was unclear whether the £2 cap would extend to trams as well as buses. The organisation stressed that thousands of local passengers rely on its services and highlighted the network’s role in directly serving a major hospital in the city.

“We fully support making public transport affordable and accessible to all, and welcome the £2 fare cap... It would be disappointing if, once again, trams and light rail weren't to be included in this much-needed scheme.”

The comment came from Tim Hesketh, chief executive of NET, after the Department for Transport confirmed on 22 July that a new lower cap would replace the current £3 cap which is due to expire at the end of this year. The government said the £2 cap will apply for the entirety of 2027.

Funding pledge for East Midlands but questions remain

A Department for Transport spokesperson said that buses were the most widely used form of public transport and so fares were being kept down, but also pointed to a regional funding package: £2 billion for the East Midlands to improve local transport. The department suggested the regional mayor could allocate that money to local priorities, including trams.

  • Current bus fare cap: £3 (expires end of this year)
  • Proposed cap for 2027: £2 (applies to buses)
  • Regional funding pledge: £2 billion for East Midlands transport

NET said it already offers a range of passes and concessions but that additional government-backed support would make tram travel more affordable for many more people, particularly given pressures from the rising cost of living.

Local impact and transport policy implications

If trams are excluded from the cap, passengers who rely on Nottingham’s light rail — including hospital staff, patients and commuters — could see relatively higher fares compared with those on bus services covered by the cap. NET has previously raised concerns about past fare caps that did not encompass trams and light rail, a point repeated in its response to the latest announcement.

The Department for Transport’s statement frames the funding package as a means for the East Midlands Mayor to invest in local priorities, potentially including trams, but leaves the mechanism — whether direct fare relief for light rail or investment in services and infrastructure — uncertain.

Item Detail
Bus fare cap (current) £3 (expires end of year)
Bus fare cap (2027) £2 (applies for 2027)
East Midlands funding £2 billion (for local transport improvements)

Claire Ward, the East Midlands Mayor, welcomed the bus cap in comments reported alongside the announcement. NET said it would await full updates on the scheme and any confirmation about the inclusion of light rail in the initiative.

Next steps for Nottingham residents

For now, local passengers and organisations will be watching for further detail from the Department for Transport and the Mayor’s office about how the regional funding will be allocated and whether direct fare relief for trams will be delivered. NET emphasised that clearer confirmation is needed to determine whether Nottingham’s tram users will share in the government’s drive to reduce travel costs.

Any decision about extending the cap to include trams would have immediate practical implications for household travel budgets and for usage patterns on Nottingham’s public transport network during 2027.

Charlotte Wentworth
Charlotte AI East Midlands Correspondent online

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