£3bn bus funding settlement aims to improve services across england

The government has announced a £3bn multi-year funding package to support local authorities in delivering cheaper, more frequent, and reliable bus services across England. The settlement, confirmed by the Department for Transport (DfT), is intended to provide long-term certainty for councils to plan, expand, and improve networks after years of service reductions.

image: TfGM

The funding can be used to reduce fares, introduce new routes, invest in zero emission buses, and upgrade bus stops and passenger facilities. Local transport authorities have discretion over how to deploy the funds to meet the specific needs of their communities. Transport Secretary Heidi Alexander said the package is part of the government’s wider commitment to making public transport cheaper and more reliable.

While the DfT announcement did not specify dedicated funding for rural routes, the Parliamentary Transport Committee welcomed the associated decision to account for rurality in allocating capital grants. Committee Chair Ruth Cadbury MP said that many rural communities have faced significant service cuts, creating “public transport deserts” and limiting access to employment, education, and essential services. She described the adjustment as “essential and just common sense,” emphasising that it helps reflect the higher operating costs of rural routes.

The multi year settlement will deliver almost £700m per year through to 2029, allowing local authorities to plan strategically and provide more consistent services. By combining the DfT funding settlement with the consideration of rural needs, the government aims to strengthen connectivity in urban and rural areas alike, supporting communities and encouraging wider use of public transport across England.

Graham Vidler, CEO of the Confederation of Passenger Transport, said, “With multi-year funding finally in place, local transport authorities must get moving and invest in what matters most to passengers: more buses, faster buses and more reliable buses. Operators stand ready to work closely with authorities across the country to turn this funding into real improvements for the communities we serve.”

Lydia Horbury, CEO Bus Users UK, said, “Passengers have faced years of cuts and uncertainty, so long-term funding for buses is extremely welcome. Giving local authorities the stability to plan ahead and invest in the services their communities rely on is essential if we’re to reverse decline and rebuild confidence in bus travel.

“We particularly welcome the flexibility for authorities to prioritise what matters most to passengers, whether that’s lower fares, more frequent services, zero emission buses or safer, more accessible infrastructure.”

Jason Prince, Director of the Urban Transport Group, said, “This funding emphasises the importance of bus as the backbone of our local transport networks. The multi-year settlement and the additional Bus Franchising Fund is an endorsement of transport devolution, providing local leaders with the certainty they need to plan and invest in better bus services to meet the needs of local communities.”