TRAVELLING by bus in the capital will be 10 per cent cheaper for passengers using Oyster cards from next month.

From September 30, the cost of a single bus fare for people with the cards will be reduced from £1 to 90p.

The price of a weekly bus pass will be cut from £14 to £13.

London Mayor Ken Livingstone said: "During the past seven years, London has seen the biggest expansion of investment in its transport system since the Second World War.

"Investment in the transport system has almost doubled from £1.5bn in the financial year 2004 to 2005 to £2.9bn in the current year.

"This unprecedented investment programme had to be financed by fare increases in the past three years.

"I am pleased the strength of London's economy and efficiencies achieved by Transport for London mean fares can now be reduced with no cutback in the investment programme or financial risk to the transport budget."