The Government has announced a £3bn boost for bus services and infrastructure, giving councils almost £700m every year up to 2028 to 2029 to be 'spent however they see fit'.
The allocations bring together various bus funding streams into one source and can be spent on anything from lowering fares, introducing new routes or creating safer bus stops and priority lanes on the road network.
This 'landmark funding' follows the Bus Services Act becoming law in October 2025, which expands the potential for bus franchising similar to the London model, where authorities can take control over services.
Alongside this multi-year funding, and the start of the bus franchising pilots across the UK, the Government is also announcing a £3 million Bus Franchising Fund.
Minister for roads and buses, Simon Lightwood, said: 'For too long, passengers have been let down by unreliable services, sub-standard bus stations and over a decade of routes being cut. This £3bn boost will change this, providing passengers with lower fares, more frequent and reliable services and safer journeys – helping both ease the cost of living and making it easier for people to get to work, hospital appointments and social plans, boosting the economy.'
Unite general secretary Sharon Graham said: 'The funding is excellent news, but the government should be mandating that councils using the funds to buy new buses are obligated to buy them from UK manufacturers. The UK bus-making industry is second to none and supports thousands of vital jobs. The government and local authorities should be doing all they can to support this key component of the UK's manufacturing sector.'
