London Mayor Boris Johnson says the Treasury should consider a season ticket tax break to reduce travel costs for commuters.

Allowing travel passes to be paid for from pre-tax income could potentially save individuals hundreds of pounds a year (see out Cheap Train Tickets guide to cut costs).

A commuter buying a 784 annual London bus pass would save 251 in tax and National Insurance, while their employer would save 108.

Writing in the Daily Telegraph, Conservative mayor Johnson says his tax relief plan would target workers' travel costs.

His aides say Johnson believes there is a "compelling case" for a season ticket tax break to be applied across the country.

But Labour, which wants a freeze on the capital's fares, says an annual all-London travelcard has increased by 440 to 2,224 in the five years since Johnson was elected mayor.

Johnson says a price freeze would benefit tourists and casual passengers who don't "need or deserve" help.

Martin Lewis
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He adds: "Yes, there would be a cost to the Treasury – but then every year government spends huge sums trying to hold fares down.

"This scheme strikes me as one George [Osborne] should consider further. You would allow continued investment in transport, and you would target your help at exactly the people who need it – not the millionaires and the tourists and the casual shoppers, but the hard-working people who are really turning the wheels of recovery."

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